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116th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 116-416
======================================================================
PROTECTING YOUR CREDIT SCORE ACT OF 2019
_______
March 12, 2020.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Ms. Waters, from the Committee on Financial Services, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 5332]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 5332) to amend the Fair Credit Reporting Act to
ensure that consumer reporting agencies are providing fair and
accurate information reporting in consumer reports, and for
other purposes, having considered the same, reports favorably
thereon with an amendment and recommends that the bill as
amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 7
Background and Need for Legislation.............................. 8
Section-by-Section Analysis...................................... 9
Hearings......................................................... 11
Committee Consideration.......................................... 12
Committee Votes.................................................. 12
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 15
Statement of Performance Goals and Objectives.................... 15
New Budget Authority and CBO Cost Estimate....................... 15
Committee Cost Estimate.......................................... 19
Unfunded Mandate Statement....................................... 19
Advisory Committee............................................... 19
Application of Law to the Legislative Branch..................... 19
Earmark Statement................................................ 19
Duplication of Federal Programs.................................. 20
Changes to Existing Law.......................................... 20
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Protecting Your
Credit Score Act of 2019''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Establishment of online consumer portal landing page for
consumer access to certain credit information.
Sec. 3. Accuracy in consumer reports.
Sec. 4. Improved dispute process for consumer reporting agencies.
Sec. 5. Injunctive relief.
Sec. 6. Increased transparency.
Sec. 7. Consumer reporting agency registry.
Sec. 8. Authority of Bureau with respect to consumer reporting
agencies.
Sec. 9. Bureau standards for protecting nonpublic information.
Sec. 10. Report on data security risk assessments in examinations of
consumer reporting agencies.
Sec. 11. GAO study on the use of social security numbers.
SEC. 2. ESTABLISHMENT OF ONLINE CONSUMER PORTAL LANDING PAGE FOR
CONSUMER ACCESS TO CERTAIN CREDIT INFORMATION.
(a) In General.--Section 612(a)(1) of the Fair Credit Reporting Act
(15 U.S.C. 1681j(a)(1)) is amended by adding at the end the following:
``(D) Online consumer portal landing page.--
``(i) In general.--Not later than 1 year
after the date of enactment of this
subparagraph, each consumer reporting agency
described in section 603(p) shall jointly
develop an online consumer portal landing page
that gives each consumer unlimited free access
to--
``(I) the consumer report of the
consumer;
``(II) the means by which the
consumer may exercise the rights of the
consumer under subparagraph (E) and
section 604(e);
``(III) the ability to initiate a
dispute with the consumer reporting
agency regarding the accuracy or
completeness of any information in a
report in accordance with section
611(a) or 623(a)(8);
``(IV) the ability to place and
remove a security freeze on a consumer
report for free under section 605A(i)
and (j);
``(V) if the consumer reporting
agency offers a product to consumers to
prevent access to the consumer report
of the consumer for the purpose of
preventing identity theft, a disclosure
to the consumer regarding the
differences between that product and a
security freeze as defined under
section 605A(i) or (j);
``(VI) information on who has
accessed the consumer report of the
consumer over the last 24 months, and,
as available, for what permissible
purpose the consumer report was
furnished in accordance with section
604 and section 609; and
``(VII) the credit score of the
consumer in accordance with section
609(f)(7).
``(ii) No waiver.--A consumer reporting
agency described in section 603(p) may not
require a consumer to waive any legal or
privacy rights to access--
``(I) a portal established under this
subparagraph; or
``(II) any of the services described
in clause (i) that are provided through
a portal established under this
subparagraph.
``(iii) No advertising or solicitations.--A
portal established under this subparagraph may
not contain any advertising, marketing offers,
or other solicitations.
``(iv) Extension.--The Bureau may allow the
consumer reporting agencies an extension of 1
year to develop the online consumer portal
landing page required under clause (i).
``(v) Rule of construction.--Nothing in this
subparagraph may be construed as requiring a
consumer reporting agency to disclose
confidential proprietary information through
the online consumer portal landing page.
``(E) Opt-out option.--
``(i) In general.--If a consumer reporting
agency sells consumer information in a manner
that is not included in a consumer report, the
consumer reporting agency shall provide each
consumer with a method (through a website, by
phone, or in writing) by which the consumer may
elect, free of charge, to not have the
information of the consumer so sold.
``(ii) No expiration.--An election made by a
consumer under clause (i) shall expire on the
date on which the consumer expressly revokes
the election through a website, by phone, or in
writing.''.
(b) Conforming Amendment.--Section 612(f)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681j(f)(1)) is amended, in the matter
preceding subparagraph (A), by adding ``or that is made through the
online consumer portal landing page established under subsection
(a)(1)(D),'' after ``subsections (a) through (d),''.
SEC. 3. ACCURACY IN CONSUMER REPORTS.
Section 607(b) of the Fair Credit Reporting Act (15 U.S.C. 1681e) is
amended to read as follows:
``(b) Ensuring Accuracy.--
``(1) In general.--In preparing a consumer report, each
consumer reporting agency shall follow reasonable procedures to
assure maximum possible accuracy of the information concerning
the consumer to whom the report relates.
``(2) Matching information in a file.--In assuring the
maximum possible accuracy under paragraph (1), each consumer
reporting agency described in section 603(p) shall ensure that,
when including information in the file of a consumer, the
consumer reporting agency--
``(A) matches all 9 digits of the social security
number of the consumer with the information that the
consumer reporting agency is including in the file; or
``(B) if a consumer does not have a social security
number, matches information that includes the full
legal name, date of birth, current address, and at
least one former address of the consumer.
``(3) Periodic audits.--Each consumer reporting agency shall
perform periodic audits, on a schedule determined by the
Bureau, on a representative sample of consumer reports of the
agency to check for accuracy.''.
SEC. 4. IMPROVED DISPUTE PROCESS FOR CONSUMER REPORTING AGENCIES.
(a) Responsibilities of Furnishers of Information to Consumer
Reporting Agencies.--Section 623 of the Fair Credit Reporting Act (15
U.S.C. 1681s-2) is amended--
(1) in subsection (a)(8)--
(A) in subparagraph (E)(ii), by inserting ``and
consider'' after ``review''; and
(B) in subparagraph (F)--
(i) in clause (i)(II), by inserting ``, and
does not include any new or additional
information that would be relevant to a
reinvestigation'' before the period at the end;
and
(ii) by adding at the end the following new
clause:
``(iv) New or additional information.--For
purposes of clause (i)(II), the term `new or
additional information'--
``(I) means information of a type
designated by the Bureau; and
``(II) does not include information
previously provided to the person.'';
and
(2) in subsection (b)(1), by inserting ``and consider'' after
``review''.
(b) Bureau Credit Reporting Ombudsperson.--Section 611(a) of the Fair
Credit Reporting Act (15 U.S.C. 1681i(a)) is amended by adding at the
end the following:
``(8) Bureau credit reporting ombudsperson.--
``(A) In general.--Not later than 180 days after the
date of enactment of this paragraph, the Bureau shall
establish the position of credit reporting
ombudsperson, whose specific duties shall include
carrying out the Bureau's responsibilities with respect
to--
``(i) resolving persistent errors that are
not resolved in a timely manner by a consumer
reporting agency; and
``(ii) enhancing oversight of consumer
reporting agencies by--
``(I) advising the Director of the
Bureau, in consultation with the Office
of Enforcement and the Office of
Supervision of the Bureau, on any
potential violations of paragraph (5)
or any other applicable law by a
consumer reporting agency, including
appropriate corrective action for such
a violation; and
``(II) making referrals to the Office
of Supervision for supervisory action
or the Office of Enforcement for
enforcement action, as appropriate, in
response to violations of paragraph (5)
or any other applicable law by a
consumer reporting agency.
``(B) Report.--The ombudsperson shall submit to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate an annual report
including statistics and analysis on consumer
complaints the Bureau receives relating to consumer
reports, as well as a summary of the supervisory
actions and enforcement actions taken with respect to
consumer reporting agencies during the year covered by
the report.''.
(c) Responsibilities of Consumer Reporting Agencies.--Section 611 of
the Fair Credit Reporting Act (15 U.S.C. 1681i) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by adding at the end the
following:
``(D) Obligations of consumer reporting agencies
relating to reinvestigations.--Commensurate with the
volume and complexity of disputes about which a
consumer reporting agency receives notice, or
reasonably anticipates to receive notice, under this
paragraph, each consumer reporting agency shall--
``(i) maintain sufficient personnel to
conduct reinvestigations of those disputes; and
``(ii) provide training with respect to the
personnel described in clause (i).'';
(B) in paragraph (6)(B)--
(i) by amending clause (ii) to read as
follows:
``(ii) a copy of the consumer's file and a
consumer report that is based upon such file as
revised, including a description of the
specific modification or deletion of
information, as a result of the
reinvestigation;'';
(ii) by striking clause (iii) and
redesignating clauses (iv) and (v) as clauses
(vi) and (vii), respectively;
(iii) by inserting after clause (ii) the
following:
``(iii) a description of the actions taken by
the consumer reporting agency regarding the
dispute;
``(iv) if applicable, contact information for
any furnisher involved in responding to the
dispute and a description of the role played by
the furnisher in the reinvestigation process;
``(v) the options available to the consumer
if the consumer is dissatisfied with the result
of the reinvestigation, including--
``(I) submitting documents in support
of the dispute;
``(II) adding a consumer statement of
dispute to the file of the consumer
pursuant to subsection (b);
``(III) filing a dispute with the
furnisher pursuant to section
623(a)(8); and
``(IV) submitting a complaint against
the consumer reporting agency or
furnishers through the consumer
complaint database of the Bureau or the
State attorney general for the State in
which the consumer resides;'';
(C) by striking paragraph (7) and redesignating
paragraph (8) as paragraph (7); and
(D) in paragraph (7), as so redesignated, by striking
``paragraphs (2), (6), and (7)'' and inserting
``paragraphs (2) and (6)''; and
(2) by adding at the end the following new subsection:
``(h) Notification of Deletion of Information.--A consumer reporting
agency described in section 603(p) shall communicate with other
consumer reporting agencies described in section 603(p) to ensure that
a dispute initiated with one consumer reporting agency is noted in a
file maintained by such other consumer reporting agencies.''.
SEC. 5. INJUNCTIVE RELIEF.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.) is amended--
(1) in section 616 (15 U.S.C. 1681n)--
(A) in subsection (a), by amending the subsection
heading to read as follows: ``Damages'';
(B) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively; and
(C) by inserting after subsection (b) the following:
``(c) Injunctive Relief.--
``(1) In general.--In addition to any other remedy under this
section, a court may award injunctive relief to require
compliance with the requirements imposed under this title with
respect to any consumer.
``(2) Attorney's fees.--In the event of any successful action
for injunctive relief under this subsection, a court may award
to the prevailing party reasonable attorney's fees (as
determined by the court) incurred by the prevailing party
during the action.''; and
(2) in section 617 (15 U.S.C. 1681o)--
(A) in subsection (a), in the subsection heading, by
striking ``(a) In General.--'' and inserting ``(a)
Damages.--'';
(B) by redesignating subsection (b) as subsection
(c); and
(C) by inserting after subsection (a) the following:
``(b) Injunctive Relief.--
``(1) In general.--In addition to any other remedy under this
section, a court may award injunctive relief to require
compliance with the requirements imposed under this title with
respect to any consumer.
``(2) Attorney's fees.--In the event of any successful action
for injunctive relief under this subsection, a court may award
to the prevailing party reasonable attorney's fees (as
determined by the court) incurred by the prevailing party
during the action.''.
(b) Enforcement.--Section 615(h)(8) of the Fair Credit Reporting Act
(15 U.S.C. 1681m(h)(8)) is amended--
(1) in subparagraph (A), by striking ``section'' and
inserting ``subsection''; and
(2) in subparagraph (B), by striking ``This section'' and
inserting ``This subsection''.
SEC. 6. INCREASED TRANSPARENCY.
(a) Disclosures to Consumers.--Section 609 of the Fair Credit
Reporting Act (15 U.S.C. 1681g) is amended--
(1) in subsection (a)(3)(B)--
(A) in clause (i), by striking ``and'' at the end;
and
(B) by striking clause (ii) and inserting the
following:
``(ii) the address and telephone number of the
person; and
``(iii) the permissible purpose, as available, of the
person for obtaining the consumer report, including the
specific type of credit product that is extended,
reviewed, or collected, as described in section
604(a)(3)(A).'';
(2) in subsection (f)--
(A) by amending paragraph (7)(A) to read as follows:
``(A) supply the consumer with a credit score through
the portal established under section 612(a)(1)(D) or
upon request by the consumer, as applicable, that--
``(i) is derived from a credit scoring model
that is widely distributed to users by that
consumer reporting agency for the purpose of
any extension of credit or other transaction
designated by the consumer who is requesting
the credit score; or
``(ii) is widely distributed to lenders of
common consumer loan products and predicts the
future credit behavior of the consumer; and'';
and
(B) in paragraph (8), by inserting ``, except that a
credit score shall be provided free of charge to the
consumer if requested in connection with a free annual
consumer report described in section 612(a) or through
the online consumer portal landing page established
under section 612(a)(1)(D)'' before the period at the
end; and
(3) in subsection (g)(1)--
(A) in subparagraph (A)(ii)--
(i) in the clause heading, by striking
``subparagraph (d)'' and inserting
``subparagraph (C)''; and
(ii) by striking ``subparagraph (D)'' and
inserting ``subparagraph (C)'';
(B) in subparagraph (B)(ii), by striking ``consistent
with subparagraph (C)'';
(C) by striking subparagraph (C); and
(D) by redesignating subparagraphs (D) through (G) as
subparagraphs (C) through (F), respectively.
(b) Notification Requirements.--
(1) Adverse information notification.--
(A) In general.--The Fair Credit Reporting Act (15
U.S.C. 1681 et seq.) is amended--
(i) in section 612 (15 U.S.C. 1681j), by
striking subsection (b) and inserting the
following:
``(b) Free Disclosure After Notice of Adverse Action or Offer of
Credit on Materially Less Favorable Term.--Not later than 30 days after
the date on which a consumer reporting agency receives a notification
under subsection (a)(2) or (h)(6) of section 615, or from a debt
collection agency affiliated with the consumer reporting agency, the
consumer reporting agency shall make to a consumer, without charge to
the consumer, all disclosures that are made to a user of a consumer
report in accordance with the rules prescribed by the Bureau.''; and
(ii) in section 615(a) (15 U.S.C. 1681m(a))--
(I) by redesignating paragraphs (2),
(3), and (4) as paragraphs (3), (4),
and (5), respectively;
(II) by inserting after paragraph (1)
the following:
``(2) direct the consumer reporting agency that provided the
consumer report that was used in the decision to take the
adverse action to provide the consumer with the disclosures
described in section 612(b);''; and
(III) in paragraph (5), as so
redesignated--
(aa) in the matter preceding
subparagraph (A), by striking
``of the consumer's right'';
(bb) by striking subparagraph
(A) and inserting the
following:
``(A) that the consumer shall receive a copy of the
consumer report with respect to the consumer, free of
charge, from the consumer reporting agency that
furnished the consumer report; and''; and
(cc) in subparagraph (B), by
inserting ``of the right of the
consumer'' before ``to
dispute''.
(B) Conforming amendment.--Section 604(b)(2)(B)(i) of
the Fair Credit Reporting Act (15 U.S.C.
1681b(b)(2)(B)(i)) is amended by striking ``section
615(a)(3)'' and inserting ``section 615(a)(4)''.
(2) Notification in cases of less favorable terms.--Section
615(h) of the Fair Credit Reporting Act (15 U.S.C. 1681m(h)) is
amended--
(A) in paragraph (1), by striking ``paragraph (6)''
and inserting ``paragraph (7)'';
(B) in paragraph (2), by striking ``paragraph (6)''
and inserting ``paragraph (7)'';
(C) in paragraph (5)(C), by striking ``may obtain''
and inserting ``shall receive'';
(D) by redesignating paragraphs (6), (7), and (8) as
paragraphs (7), (8), and (9), respectively; and
(E) by inserting after paragraph (5) the following:
``(6) Reports provided to consumers.--A person who uses a
consumer report as described in paragraph (1) shall notify and
direct the consumer reporting agency that provided the consumer
report to provide the consumer with the disclosures described
in section 612(b).''.
(3) Notification of subsequent submissions of negative
information.--Section 623(a)(7)(A)(ii) of the Fair Credit
Reporting Act (15 U.S.C. 1681s-2(a)(7)(A)(ii)) is amended by
striking ``with respect to'' and all that follows through the
period at the end and inserting ``without providing additional
notice to the consumer, unless another person acquires the
right to repayment connected to the additional negative
information. The acquiring person shall be subject to the
requirements of this paragraph and shall be required to send
consumers the written notices described in this paragraph, if
applicable.''.
SEC. 7. CONSUMER REPORTING AGENCY REGISTRY.
Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is
amended by adding at the end the following:
``(h) Consumer Reporting Agency Registry.--
``(1) Establishment of registry.--Not later than 180 days
after the date of enactment of this subsection, the Bureau
shall establish a publicly available registry of consumer
reporting agencies that includes--
``(A) each consumer reporting agency that compiles
and maintains files on consumers on a nationwide basis;
``(B) each nationwide specialty consumer reporting
agency;
``(C) all other consumer reporting agencies that are
not included under section 603(p) or 603(x); and
``(D) links to any relevant websites of a consumer
reporting agency described under subparagraphs (A)
through (C).
``(2) Registration requirement.--The Bureau shall establish a
deadline, which shall be not later than 270 days after the date
of the enactment of this subsection, by which each consumer
reporting agency described in paragraph (1) shall be required
to register in the registry established under such
paragraph.''.
SEC. 8. AUTHORITY OF BUREAU WITH RESPECT TO CONSUMER REPORTING
AGENCIES.
Section 1024(a)(1) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5514(a)(1)) is amended--
(1) in subparagraph (D), by striking ``or'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following new subparagraph:
``(F) is a consumer reporting agency described under
section 603(p) of the Fair Credit Reporting Act.''.
SEC. 9. BUREAU STANDARDS FOR PROTECTING NONPUBLIC INFORMATION.
Title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.) is
amended--
(1) in section 501, by adding at the end the following new
subsection:
``(c) Consumer Reporting Agency Safeguards.--The Bureau of Consumer
Financial Protection shall establish, by rule, appropriate standards
for consumer reporting agencies described under section 603(p) of the
Fair Credit Reporting Act relating to administrative, technical, and
physical safeguards to protect records and information as described in
paragraphs (1) through (3) of subsection (b).'';
(2) in section 504(a)(1)(A), by striking ``, except that the
Bureau of Consumer Financial Protection shall not have
authority to prescribe regulations with respect to the
standards under section 501''; and
(3) in section 505(a)(8), by inserting ``, other than under
subsection (c) of section 501'' after ``section 501''.
SEC. 10. REPORT ON DATA SECURITY RISK ASSESSMENTS IN EXAMINATIONS OF
CONSUMER REPORTING AGENCIES.
Not later than 90 days after the date of the enactment of this Act,
the Director of the Bureau of Consumer Financial Protection shall
assess whether examinations conducted by the Director of consumer
reporting agencies described under section 603(f) of the Fair Credit
Reporting Act (15 U.S.C. 1681a(f)) include sufficient processes to
addresses any data security risks to the consumers of such agencies on
which such agencies maintain and compile files. Along with the first
semiannual report required under section 1016(b) of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5496(b)) to be submitted
after the 90-day period after the date of the enactment of this Act,
the Director shall submit to Congress a report containing the results
of such assessment that includes--
(1) recommendations for improving the processes to addresses
any such data security risks; and
(2) the progress of the Director on making any improvements
described under paragraph (1).
SEC. 11. GAO STUDY ON THE USE OF SOCIAL SECURITY NUMBERS.
(a) Study.--The Comptroller General of the United States shall carry
out a study on the feasibility and means of consumer reporting agencies
replacing the use of social security numbers as identifiers with
another type of Federal identification.
(b) Report.--Not later than the end of the 2-year period beginning on
the date of the enactment of this Act, the Comptroller General shall
issue a report to the Congress containing all findings and
determinations made in carrying out the study required under subsection
(a).
Purpose and Summary
On December 6, 2019, Representative Josh Gottheimer
introduced H.R. 5332, the ``Protecting Your Credit Score Act of
2019,'' which directs the nationwide consumer reporting
agencies (CRAs) to create a single online portal landing page
for consumers to access free credit reports, credit scores,
dispute errors, and place or lift security freezes. This
landing page would also contain clear information on consumer
rights and handling report disputes. The bill also codifies the
Consumer Financial Protection Bureau's (CFPB or Consumer
Bureau) supervision of the nationwide CRAs and clarifies that
the Consumer Bureau has authority, under the Gramm-Leach-Bliley
Act, to prescribe and enforce data security safeguards for the
nationwide CRAs. The bill provides for injunctive relief to
allow a court to compel a CRA to fix an error or remove
inaccurate information from a consumer report. The bill creates
an Ombudsperson at the Consumer Bureau tasked with resolving
persistent errors on reports that are not addressed in a timely
fashion and allows the Ombudsperson to make referrals to the
Offices of Supervision and Enforcement for corrective action in
response to violations of applicable law by a CRA. Finally, the
bill requires the Government Accountability Office (GAO) to
conduct a study on the feasibility and means of CRAs replacing
the use of Social Security numbers as identifiers.
Background and Need for Legislation
Our nation's credit reporting system is broken yet has an
impact on almost every American. Credit scores and credit
reports are increasingly relied upon by creditors, employers,
insurers, and even law enforcement. Yet it has been more than
15 years since Congress enacted comprehensive reform of the
consumer reporting system,\1\ and there have been numerous
shortcomings with the current system identified during that
time that need to be addressed. For example, a Federal Trade
Commission (FTC) study found that one out of every five
consumers have a verified error on their consumer reports and
five percent had errors serious enough to result in them being
denied credit or paying more for mortgages, auto loans,
insurance policies, and other financial obligations.\2\ An
analysis of the Consumer Bureau's consumer complaint database
revealed that in 2018, credit reports were the most complained
about financial product, and the three major credit bureaus--
Equifax, Experian and TransUnion--were the most complained
about financial companies.\3\
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\1\The Fair and Accurate Credit Transactions Act of 2003 (FACT Act;
P.L. 108-159), among other things, allows consumers to request and
obtain a free credit report once a year from each of the three
nationwide consumer reporting agencies.
\2\https://www.ftc.gov/sites/default/files/documents/reports/
section-319-fair-and-accurate-credit-transactions-act-2003-fifth-
interim-federal-trade-commission/130211factareport.pdf.
\3\https://uspirg.org/news/usp/youre-not-alone-cfpb-complaints-
rise.
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According to the Consumer Bureau, many consumers believe
consumer reports are ``hard to get and hard to understand.''\4\
Unlike a consumer's Federal right to obtain a free annual
consumer report from each of the nationwide CRAs and nationwide
specialty CRAs, in most cases, consumers have no legal right to
their credit score.\5\ Unlike other businesses where
dissatisfied and unhappy consumers can decide to stop doing
business with a company, consumers have almost no control over
whether furnishers provide information about them to CRAs that
is compiled and maintained in the CRAs' databases. Consumers'
concerns about credit reporting errors and their fears about
stolen credit information and identity theft have also
increased consumers' purchases of credit monitoring services
and other products from the nationwide CRAs, which have allowed
these companies to profit, in part, from their own deficient
practices.\6\
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\4\CFPB, ``Consumer Voices on Credit Reports and Scores,'' Feb.
2015, at 19, available at: https://files.consumerfinance.gov/f/
201502_cfpb_report_consumer-voices-on-credit-reports-and-scores.pdf.
\5\The Dodd-Frank Act, amended the FCRA, to require ``adverse
action notices'' (which are disclosures sent to consumers by creditors
when a person has applied, but been denied, credit by a company to
identify for the consumer, the CRA that the company obtained a report
from to help make this decision) and ``risk-based pricing notices''
(which are disclosures sent to consumers by creditors informing a
consumer that their request for new credit has been granted to them
but, on materially less favorable terms and conditions, than the
creditor has provided to other consumers to identify the CRA that the
creditor obtained a report from to help make this decision) to include
credit score disclosures.
\6\Consumer Voices on Credit Reports and Scores, supra note 4, at
13.
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The Consumer Bureau has found that there is significant
consumer confusion about the differences between the credit
scores available to consumers and those that are sold to, and
used by, creditors or lenders.\7\ This confusion can lead to
consumers forming inaccurate perceptions of their ability to
access credit on affordable terms.\8\ In addition, CRAs
frequently market consumer reporting products and services as
``free'' when they are actually paid-subscription services that
automatically convert after a trial period.
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\7\Id. at 9.
\8\Id. at 18.
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In addition, following the Equifax data breach, which
compromised at least 145.5 million consumers' data, the GAO
found that consumers have little control over what information
credit reporting agencies have, and that Federal oversight
could be improved, including by enhancing the Consumer Bureau's
oversight of CRAs and strengthening Federal enforcement of data
safeguards.\9\
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\9\Government Accountability Office, Consumer Data Protection:
Actions Needed to Strengthen Oversight of Consumer Reporting Agencies
31 (2019), available at https://www.gao.gov/products/GAO-19-196.
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It is critical that Congress act swiftly to address these
critical flaws and modernize the Fair Credit Reporting Act to
ensure the credit reporting system works better for all
Americans.
This legislation is supported by a coalition of consumer
and community organizations.\10\ The National Association of
Realtors also support this legislation.\11\
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\10\Supporting organizations include Americans for Financial
Reform, Consumer Action, Consumer Federation of America, Consumer
Reports, National Association of Consumer Advocates, National Consumer
Law Center (on behalf of its low-income clients), U.S. PIRG, World
Privacy Forum.
\11\National Association of Realtors letter, available at https://
narfocus.com/billdatabase/clientfiles/172/2/3473.pdf.
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This legislation was considered at a Financial Services
Task Force on Financial Technology hearing on July 25th, 2019
and discussed at a full committee hearing on February 26,
2019.\12\
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\12\Financial Services Task Force on Financial Technology Committee
Hearing: ``Examining the Use of Alternative Data in Underwriting and
Credit Scoring to Expand Access to Credit'' (2019). Hearing information
available at https://financialservices.house.gov/calendar/
eventsingle.aspx?EventID=404003. See also Financial Services Committee
Hearing: ``Who's Keeping Score? Holding Credit Bureaus Accountable and
Repairing a Broken System'' (2019). Hearing information available at
https://financialservices.house.gov/calendar/
eventsingle.aspx?EventID=402343.
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Section-by-Section Analysis
Section 1. Title; Table of contents
This section provides that H.R. 5332 may be cited as the
``Protecting Your Credit Score Act of 2019.''
Section 2. Establishment of online consumer portal landing page for
consumer access to certain credit information
This section adds a new subparagraph (D) to Section
612(a)(1) of the Fair Credit Reporting Act.
The new subparagraph (D) mandates that within one year of
enactment, the three largest consumer reporting agencies
described in section 603(p) must jointly develop an online
portal that gives consumers unlimited free access to their
consumer report, the ability to initiate disputes, the ability
to lift and remove security freezes, information on who has
accessed their report over the last two years, and their credit
score. The portal cannot contain any advertising or
solicitations. The CFPB may also grant the CRAs an additional
year to create the portal if necessary.
Section 3. Accuracy in consumer reports
This section amends Section 607(b) of the Fair Credit
Reporting Act.
In order to ensure the maximum possible accuracy of a
consumer report, the amended section 607(b) provides that CRAs
must match all nine digits of a social security number (SSN) to
the consumer. If there is no SSN available, the CRAs must match
the full legal name, date of birth, current address, and at
least one previous address of the consumer. Each CRA must also
conduct periodic audits on a sample of consumer reports to
check for accuracy.
Section 4. Improved dispute process for consumer reporting agencies
Subsection (a) amends Section 623 of the Fair Credit
Reporting Act by providing that the CRAs must ``review and
consider'' disputes.
Subsection (b) amends section 611(a) of the Fair Credit
Reporting Act by adding a new paragraph (8) that creates a
Credit Reporting Ombudsperson at the CFPB in order to help
resolve persistent errors that are not resolved in a timely
manner as well as make referrals for supervisory and
enforcement action, as may be appropriate, against CRAs. The
Ombudsperson will support an annual report including an
analysis of consumer complaints to the CFPB regarding credit
reporting issues.
Subsection (c) further amends section 611(a) to mandate
that CRAs must maintain and train enough personnel to conduct
reinvestigations of disputes, and provides for additional
requirements with respect to such reinvestigations.
Section 5. Injunctive relief
This section amends the Fair Credit Reporting Act by adding
a new subsection (c) to section 616 and a new subsection (b) to
section 617 of such Act.
Under the new subsections added by this section, courts may
award injunctive relief to require compliance with the Fair
Credit Reporting Act. This section also authorizes courts to
award costs and reasonable attorney's fees.
This section also amends section 615(h)(8) of the Fair
Credit Reporting Act to make certain conforming amendments.
Section 6: Increased transparency
This section amends Sections 604, 609, 612, and 615 of the
Fair Credit Reporting Act.
Subsection (a) amends section 609 of the Fair Credit
Reporting Act. The amended section 609 provides that upon
request, the CRAs must disclose to the consumer the name,
address, and telephone number of anyone that has accessed their
consumer report, as well as for what purpose. It also provides
that a credit score shall be provided free of charge if
requested through the portal.
Paragraph (1) of subsection (b) amends and replaces section
612(b) of the Fair Credit Reporting Act to require that when a
CRA receives notice of adverse action or offer of credit on
materially less favorable terms on a consumer's report, they
shall disclose that information to the consumer within 30 days.
This paragraph also makes a conforming amendment to section
604.
Paragraph (2) of subsection (b) amends section 615(h) of
the Fair Credit Reporting Act to provide that a person that
uses a consumer report to offer credit to a consumer on
materially less favorable terms must inform the relevant CRA
and direct the CRA to provide the disclosures described in the
amended section 612(b).
Paragraph (3) of subsection (b) amends section 623 of the
Fair Credit Reporting Act to ensure that consumers receive
notice of subsequent submissions of negative information.
Section 7. Consumer reporting agency registry
This section amends Section 621 of the Fair Credit
Reporting Act by adding a new subsection (h).
The new subsection (h) provides that within 180 days of the
enactment of this subsection, the CFPB must establish a
publicly available registry that includes all CRAs as well as
links to any relevant websites of a CRA. It gives the CRAs 270
days to register in this registry.
Section 8. Authority of Bureau with respect to consumer reporting
agencies
This section amends Section 1024(a)(1) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act to codify the
CFPB's supervisory authority over the CRAs.
Section 9. Bureau standards for protecting non-public information
This section amends section 501 of the Gramm-Leach-Bliley
Act (GLBA) by clarifying the CFPB's authority over the CRAs
relating to administrative, technical, and physical safeguards
required by GLBA to protect records and sensitive information.
Section 10. Report on data security risk assessments in examinations of
consumer reporting agencies
This section provides that within 90 days of the enactment
of H.R. 5332, the CFPB Director shall assess whether Bureau
examinations of the CRAs include sufficient processes to
address any data security risks to the consumers that have
files held by the CRAs. This section also provides that in the
first semi-annual report to Congress after the enactment of the
bill, the Director shall submit a report that includes
recommendations for improving the processes to address any data
security risks as well as the progress of the Bureau on making
these improvements.
Section 11. GAO study on the use of social security numbers
This section directs the Comptroller General of the GAO to
conduct a study on the feasibility and means of consumer
reporting agencies replacing the use of social security numbers
as identifiers with another type of federal identification. The
GAO will have two years from the date of bill enactment to
report the findings to Congress.
Hearings
For the purposes of section 103(i) of H. Res. 6 for the
116th Congress--
(1) The Committee on Financial Services held a hearing,
entitled ``Who's Keeping Score? Holding Credit Bureaus
Accountable and Repairing a Broken System'' to consider the
``Comprehensive Consumer Credit Reporting Reform Act of 2019''
(Title III of the discussion draft is substantially similar to
H.R. 5332) on February 26, 2019. The two-panel hearing
consisted of a panel with the CEOs of the three largest Credit
Reporting Agencies: Equifax, TransUnion, and Experian.
Witnesses on the second panel included representatives from the
National Fair Housing Alliance, the National Consumer Law
Center, UnidosUS, U.S. Public Interest Research Group (PIRG),
and a Paul Hastings partner and attorney. The hearing allowed
Members of the Financial Services Committee to hear from
witnesses about the continuing challenges of modernizing the
Fair Credit Reporting Act to better protect consumers and their
data, as well as other legislation to help overcome those
challenges.
(2) The Committee on Financial Services' taskforce on
Financial Technology held a hearing, entitled ``Examining the
Use of Alternative Data in Underwriting and Credit Scoring to
Expand Access to Credit'' on July 25, 2019 to discuss emerging
technologies and how they impact access to credit, and their
impact across communities. The panel of witnesses consisted of
representatives from the National Consumer Law Center, Tulane
University Law School, The Government Accountability Office
(GAO), Upstart, and Upturn.
(3) In addition, during the 115th Congress, the Financial
Services Committee held a two-part hearing on the Equifax data
breach and related credit reporting and consumer data
protection issues. The first part of the hearing entitled
``Examining the Equifax Data Breach'' took place on October 5,
2017 and featured the former Chairman and CEO to Equifax. The
Committee also held a Minority Day hearing, which was a
continuation of the hearing entitled, ``Examining the Equifax
Data Breach'' and took place on October 25, 2017. Witnesses
included representatives from the Consumer Financial Protection
Bureau, the National Consumer Law Center, Georgetown University
Law Center, and the Office of the New York State Attorney
General.
Committee Consideration
The Committee on Financial Services met in open session on
December 11, 2019 and ordered H.R. 5332 to be reported
favorably to the House with an amendment in the nature of a
substitute by a vote of 31 yeas and 24 nays, a quorum being
present.
Committee Votes and Roll Call Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
following roll call votes occurred during the Committee's
consideration of H.R. 5332:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
House of Representatives, the goals of H.R. 5332 are to
increase easy access to free credit reports, scores, and credit
file information for consumers.
New Budget Authority and CBO Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a) of the
Congressional Budget Act of 1974, and pursuant to clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 402 of the Congressional Budget Act
of 1974, the Committee has received the following estimate for
H.R. 5332 from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, February 21, 2020.
Hon. Maxine Waters,
Chairwoman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Madam Chairwoman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5332, the
Protecting Your Credit Score Act of 2019.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is David Hughes.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The bill would:
Require the Consumer Financial Protection
Bureau (CFPB) to issue rules that impose new
requirements on consumer reporting agencies (CRAs) and
entities that furnish information to CRAs
Require the CFPB to hire a credit reporting
ombudsman to coordinate bureau activity regarding CRAs
Impose private-sector mandates as defined in
the Unfunded Mandates Reform Act (UMRA) by placing new
requirements on CRAs, financial institutions, and
entities that furnish information to CRAs
Impose intergovernmental mandates as defined
in UMRA by requiring users of consumer reports to
notify CRAs of adverse actions taken against a consumer
Estimated budgetary effects would primarily stem from:
Increases in direct spending for additional
CFPB staff
Bill summary: H.R. 5332 would direct the Consumer Financial
Protection Bureau (CFPB) to issue rules requiring consumer
reporting agencies (CRAs) to provide consumers with free online
access to their consumer reports and credit scores. The bill
also would require CRAs to be staffed to adequately conduct
reinvestigations of disputed information in consumers' files.
The rules would establish standards for CRAs to safeguard
consumer information and include a schedule for CRAs to audit
the accuracy of personally identifiable information in consumer
files.
H.R. 5332 also would require the CFPB to hire a credit-
reporting ombudsman to identify and resolve persistent errors
in CRAs' reports, enhance the bureau's supervision of CRAs, and
report to the Congress annually about consumers' complaints.
The bureau would be required to establish a public registry of
CRAs and report to the Congress on whether its own examinations
sufficiently address the security risks faced by consumers
whose information is held by CRAs.
Finally, the bill would require the Government
Accountability Office (GAO) to report to the Congress on the
feasibility of CRAs' methods of identifying consumers'
information.
Estimated Federal cost: The costs of the legislation fall
within budget function 370 (commerce and housing credit).
Basis of estimate: CBO assumes that H.R. 5332 would be
enacted in 2020. The CFPB has permanent authority, not subject
to annual appropriation, to spend amounts transferred from the
Federal Reserve. CBO's estimates of the cost of the
requirements in the bill are based on information from the CFPB
and on the cost of similar activities.
In total, CBO estimates that enacting H.R. 5332 would
increase direct spending by $25 million over the 2020-2030
period. The components of that cost are detailed below.
CBO estimates that the CFPB would need to
hire 20 employees, at an annual cost of $220,000 each,
for about 18 months to issue the required rules for a
total cost of $7 million over the 2020-2021 period.
CBO estimates that the CFPB would need to
hire an ombudsman and five additional staff near the
end of 2020 to fulfill various duties, at an initial
annual cost of $220,000 with adjustments in later years
for inflation, or $17 million over the 2020-2030
period.
CBO estimates that the cost to the CFPB of
other required activities would be $1 million over the
2020-2030 period.
CBO estimates that the cost for GAO to
report to the Congress would be less than $500,000 and
would be subject to the availability of appropriated
funds.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in Table 1.
TABLE 1.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 5332, THE PROTECTING YOUR CREDIT SCORE ACT OF 2019, AS ORDERED REPORTED BY THE
HOUSE COMMITTEE ON FINANCIAL SERVICES ON DECEMBER 11, 2019
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
--------------------------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2020-2025 2020-2030
--------------------------------------------------------------------------------------------------------------------------------------------------------
Net Increase in the Deficit
Pay-As-You-Go Effect................................. 1 7 1 2 2 2 2 2 2 2 2 15 25
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increase in long-term deficits: CBO estimates that enacting
H.R. 5332 would not increase on-budget deficits by more than $5
billion in any of the four consecutive 10-year periods
beginning in 2031.
Mandates: The bill contains intergovernmental and private-
sector mandates as defined in the Unfunded Mandates Reform Act
(UMRA). CBO estimates that the costs of the intergovernmental
mandates would fall below the UMRA threshold ($84 million in
2020, adjusted annually for inflation). CBO estimates that the
aggregate cost of the private-sector mandates would exceed the
threshold established in UMRA ($168 in 2020, adjusted annually
for inflation).
Mandate that applies to private entities only: H.R. 5332
would impose new requirements on CRAs, financial institutions,
entities that furnish information to CRAs, and entities that
use consumer reports to make personnel decisions.
Under current law, CRAs must provide annual consumer
reports, for free, upon request by a consumer. H.R. 5332 would
require CRAs to include the consumer's credit score for free
with the consumer report. Using industry data, CBO estimates
that CRAs would provide free credit scores in about 20 million
consumer reports each year, at an average cost of approximately
$9.50 per score. Thus, CBO estimates that it would cost CRAs
roughly $198 million annually to comply with this requirement.
CRAs would be required to jointly develop an online portal
to give consumers unlimited free access to various services
including consumer reports, security freezes, and credit
scores. According to industry sources, the cost to develop the
portal would be roughly $50 million.
H.R. 5332 would impose a number of other requirements on
CRAs, which CBO estimates would impose small compliance costs.
The bill would require CRAs to:
Allow consumers to opt-out (free of charge)
of having their information sold,
Ensure the accuracy of information in
consumer reports by matching social security numbers,
Maintain a sufficient number of trained
personnel to conduct reinvestigations of information
under dispute by a consumer,
Disclose new information to consumers
regarding dispute reinvestigations and requests for
their consumer report,
Regularly audit information contained in
consumer reports,
Communicate with other CRAs to ensure a
consumer's dispute is noted in their file at all
relevant CRAs,
Notify consumers within 30 days (current law
requires notification within 60 days) of an adverse
action taken against a consumer as the result of
information contained in their consumer report, and
Register with CFPB.
The bill would require CFPB to establish rules and
appropriate standards for CRAs to safeguard and protect
customer records and information. However, because the CFPB has
not yet established those rules, CBO cannot determine the costs
to comply.
The bill would require financial institutions that acquire
a consumer's debt to provide notice to the consumer when
supplying adverse information to a CRA. Because current law
already requires a number of financial institutions to provide
such notice, the cost to expand the requirement to a broader
field of institutions would be small.
H.R. 5332 would require entities that furnish information
to CRAs to reinvestigate disputes from consumers if the
claimant presents new or additional information. To qualify for
a reinvestigation, the consumer must supply information deemed
acceptable by CFPB. Because CBO cannot anticipate the type of
information that CFPB would deem acceptable or the number of
new reinvestigations that would be requested, we cannot
determine the cost of the mandate.
Mandate that applies both to public and private entities:
The bill would require users of consumer reports to notify CRAs
of any adverse actions taken against a consumer as a result of
information contained in the report. That prohibition would
impose an intergovernmental and private-sector mandate because
individuals in both the public and private sector use consumer
reports for background checks and personnel decisions. Current
law already requires a number of the mandated entities to
report information regarding an adverse action directly to
consumers. Therefore, the incremental cost to notify CRAs would
be small because the mandated entities already collect the
information required to be disclosed under the bill.
Estimate prepared by: Federal costs: David Hughes;
Mandates: Rachel Austin.
Estimate reviewed by: Kim Cawley, Chief, Natural and
Physical Resources Cost Estimates Unit; Susan Willie, Chief,
Public and Private Mandates Unit; H. Samuel Papenfuss, Deputy
Director of Budget Analysis; Theresa Gullo, Director of Budget
Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 5332.
However, clause 3(d)(2)(B) of that rule provides that this
requirement does not apply when the committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act.
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act (as amended by Section 101(a)(2) of the
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee
adopts as its own the estimate of federal mandates regarding
H.R. 5332, as amended, prepared by the Director of the
Congressional Budget Office.
Advisory Committee
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Application of Law to the Legislative Branch
H.R. 5332 does not apply to terms and conditions of
employment or to access to public services or accommodations
within the legislative branch.
Earmark Statement
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as described in clauses 9(e), 9(f), and 9(g) of rule
XXI.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of H.R. 5332 establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Changes in Existing Law Made by the Bill as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, H.R. 5332, as reported, are shown as follows:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
TITLE VI--CONSUMER CREDIT REPORTING
* * * * * * *
Sec. 604. Permissible purposes of reports
(a) In General.--Subject to subsection (c), any consumer
reporting agency may furnish a consumer report under the
following circumstances and no other:
(1) In response to the order of a court having
jurisdiction to issue such an order, or a subpoena
issued in connection with proceedings before a Federal
grand jury.
(2) In accordance with the written instructions of
the consumer to whom it relates.
(3) To a person which it has reason to believe--
(A) intends to use the information in
connection with a credit transaction involving
the consumer on whom the information is to be
furnished and involving the extension of credit
to, or review or collection of an account of,
the consumer; or
(B) intends to use the information for
employment purposes; or
(C) intends to use the information in
connection with the underwriting of insurance
involving the consumer; or
(D) intends to use the information in
connection with a determination of the
consumer's eligibility for a license or other
benefit granted by a governmental
instrumentality required by law to consider an
applicant's financial responsibility or status;
or
(E) intends to use the information, as a
potential investor or servicer, or current
insurer, in connection with a valuation of, or
an assessment of the credit or prepayment risks
associated with, an existing credit obligation;
or
(F) otherwise has a legitimate business need
for the information--
(i) in connection with a business
transaction that is initiated by the
consumer; or
(ii) to review an account to
determine whether the consumer
continues to meet the terms of the
account.
(G) executive departments and agencies in
connection with the issuance of government-
sponsored individually-billed travel charge
cards.
(4) In response to a request by the head of a State
or local child support enforcement agency (or a State
or local government official authorized by the head of
such an agency), if the person making the request
certifies to the consumer reporting agency that--
(A) the consumer report is needed for the
purpose of establishing an individual's
capacity to make child support payments,
determining the appropriate level of such
payments, or enforcing a child support order,
award, agreement, or judgment;
(B) the parentage of the consumer for the
child to which the obligation relates has been
established or acknowledged by the consumer in
accordance with State laws under which the
obligation arises (if required by those laws);
and
(C) the consumer report will be kept
confidential, will be used solely for a purpose
described in subparagraph (A), and will not be
used in connection with any other civil,
administrative, or criminal proceeding, or for
any other purpose.
(5) To an agency administering a State plan under
section 454 of the Social Security Act (42 U.S.C. 654)
for use to set an initial or modified child support
award.
(6) To the Federal Deposit Insurance Corporation or
the National Credit Union Administration as part of its
preparation for its appointment or as part of its
exercise of powers, as conservator, receiver, or
liquidating agent for an insured depository institution
or insured credit union under the Federal Deposit
Insurance Act or the Federal Credit Union Act, or other
applicable Federal or State law, or in connection with
the resolution or liquidation of a failed or failing
insured depository institution or insured credit union,
as applicable.
(b) Conditions for Furnishing and Using Consumer Reports for
Employment Purposes.--
(1) Certification from user.--A consumer reporting
agency may furnish a consumer report for employment
purposes only if--
(A) the person who obtains such report from
the agency certifies to the agency that--
(i) the person has complied with
paragraph (2) with respect to the
consumer report, and the person will
comply with paragraph (3) with respect
to the consumer report if paragraph (3)
becomes applicable; and
(ii) information from the consumer
report will not be used in violation of
any applicable Federal or State equal
employment opportunity law or
regulation; and
(B) the consumer reporting agency provides
with the report, or has previously provided, a
summary of the consumer's rights under this
title, as prescribed by the Bureau under
section 609(c)(3).
(2) Disclosure to consumer.--
(A) In general.--Except as provided in
subparagraph (B), a person may not procure a
consumer report, or cause a consumer report to
be procured, for employment purposes with
respect to any consumer, unless--
(i) a clear and conspicuous
disclosure has been made in writing to
the consumer at any time before the
report is procured or caused to be
procured, in a document that consists
solely of the disclosure, that a
consumer report may be obtained for
employment purposes; and
(ii) the consumer has authorized in
writing (which authorization may be
made on the document referred to in
clause (i)) the procurement of the
report by that person.
(B) Application by mail, telephone, computer,
or other similar means.--If a consumer
described in subparagraph (C) applies for
employment by mail, telephone, computer, or
other similar means, at any time before a
consumer report is procured or caused to be
procured in connection with that application--
(i) the person who procures the
consumer report on the consumer for
employment purposes shall provide to
the consumer, by oral, written, or
electronic means, notice that a
consumer report may be obtained for
employment purposes, and a summary of
the consumer's rights under [section
615(a)(3)] section 615(a)(4); and
(ii) the consumer shall have
consented, orally, in writing, or
electronically to the procurement of
the report by that person.
(C) Scope.--Subparagraph (B) shall apply to a
person procuring a consumer report on a
consumer in connection with the consumer's
application for employment only if--
(i) the consumer is applying for a
position over which the Secretary of
Transportation has the power to
establish qualifications and maximum
hours of service pursuant to the
provisions of section 31502 of title
49, or a position subject to safety
regulation by a State transportation
agency; and
(ii) as of the time at which the
person procures the report or causes
the report to be procured the only
interaction between the consumer and
the person in connection with that
employment application has been by
mail, telephone, computer, or other
similar means.
(3) Conditions on use for adverse actions.--
(A) In general.--Except as provided in
subparagraph (B), in using a consumer report
for employment purposes, before taking any
adverse action based in whole or in part on the
report, the person intending to take such
adverse action shall provide to the consumer to
whom the report relates--
(i) a copy of the report; and
(ii) a description in writing of the
rights of the consumer under this
title, as prescribed by the Bureau
under section 609(c)(3).
(B) Application by mail, telephone, computer,
or other similar means.--
(i) If a consumer described in
subparagraph (C) applies for employment
by mail, telephone, computer, or other
similar means, and if a person who has
procured a consumer report on the
consumer for employment purposes takes
adverse action on the employment
application based in whole or in part
on the report, then the person must
provide to the consumer to whom the
report relates, in lieu of the notices
required under subparagraph (A) of this
section and under section 615(a),
within 3 business days of taking such
action, an oral, written or electronic
notification--
(I) that adverse action has
been taken based in whole or in
part on a consumer report
received from a consumer
reporting agency;
(II) of the name, address and
telephone number of the
consumer reporting agency that
furnished the consumer report
(including a toll-free
telephone number established by
the agency if the agency
compiles and maintains files on
consumers on a nationwide
basis);
(III) that the consumer
reporting agency did not make
the decision to take the
adverse action and is unable to
provide to the consumer the
specific reasons why the
adverse action was taken; and
(IV) that the consumer may,
upon providing proper
identification, request a free
copy of a report and may
dispute with the consumer
reporting agency the accuracy
or completeness of any
information in a report.
(ii) If, under clause (B)(i)(IV), the
consumer requests a copy of a consumer
report from the person who procured the
report, then, within 3 business days of
receiving the consumer's request,
together with proper identification,
the person must send or provide to the
consumer a copy of a report and a copy
of the consumer's rights as prescribed
by the Bureau under section 609(c)(3).
(C) Scope.--Subparagraph (B) shall apply to a
person procuring a consumer report on a
consumer in connection with the consumer's
application for employment only if--
(i) the consumer is applying for a
position over which the Secretary of
Transportation has the power to
establish qualifications and maximum
hours of service pursuant to the
provisions of section 31502 of title
49, or a position subject to safety
regulation by a State transportation
agency; and
(ii) as of the time at which the
person procures the report or causes
the report to be procured the only
interaction between the consumer and
the person in connection with that
employment application has been by
mail, telephone, computer, or other
similar means.
(4) Exception for national security investigations.--
(A) In general.--In the case of an agency or
department of the United States Government
which seeks to obtain and use a consumer report
for employment purposes, paragraph (3) shall
not apply to any adverse action by such agency
or department which is based in part on such
consumer report, if the head of such agency or
department makes a written finding that--
(i) the consumer report is relevant
to a national security investigation of
such agency or department;
(ii) the investigation is within the
jurisdiction of such agency or
department;
(iii) there is reason to believe that
compliance with paragraph (3) will--
(I) endanger the life or
physical safety of any person;
(II) result in flight from
prosecution;
(III) result in the
destruction of, or tampering
with, evidence relevant to the
investigation;
(IV) result in the
intimidation of a potential
witness relevant to the
investigation;
(V) result in the compromise
of classified information; or
(VI) otherwise seriously
jeopardize or unduly delay the
investigation or another
official proceeding.
(B) Notification of consumer upon conclusion
of investigation.--Upon the conclusion of a
national security investigation described in
subparagraph (A), or upon the determination
that the exception under subparagraph (A) is no
longer required for the reasons set forth in
such subparagraph, the official exercising the
authority in such subparagraph shall provide to
the consumer who is the subject of the consumer
report with regard to which such finding was
made--
(i) a copy of such consumer report
with any classified information
redacted as necessary;
(ii) notice of any adverse action
which is based, in part, on the
consumer report; and
(iii) the identification with
reasonable specificity of the nature of
the investigation for which the
consumer report was sought.
(C) Delegation by head of agency or
department.--For purposes of subparagraphs (A)
and (B), the head of any agency or department
of the United States Government may delegate
his or her authorities under this paragraph to
an official of such agency or department who
has personnel security responsibilities and is
a member of the Senior Executive Service or
equivalent civilian or military rank.
(D) Definitions.--For purposes of this
paragraph, the following definitions shall
apply:
(i) Classified information.--The term
``classified information'' means
information that is protected from
unauthorized disclosure under Executive
Order No. 12958 or successor orders.
(ii) National security
investigation.--The term ``national
security investigation'' means any
official inquiry by an agency or
department of the United States
Government to determine the eligibility
of a consumer to receive access or
continued access to classified
information or to determine whether
classified information has been lost or
compromised.
(c) Furnishing Reports in Connection With Credit or Insurance
Transactions That Are Not Initiated by the Consumer.--
(1) In general.--A consumer reporting agency may
furnish a consumer report relating to any consumer
pursuant to subparagraph (A) or (C) of subsection
(a)(3) in connection with any credit or insurance
transaction that is not initiated by the consumer only
if--
(A) the consumer authorizes the agency to
provide such report to such person; or
(B)(i) the transaction consists of a firm
offer of credit or insurance;
(ii) the consumer reporting agency has
complied with subsection (e);
(iii) there is not in effect an election by
the consumer, made in accordance with
subsection (e), to have the consumer's name and
address excluded from lists of names provided
by the agency pursuant to this paragraph; and
(iv) the consumer report does not contain a
date of birth that shows that the consumer has
not attained the age of 21, or, if the date of
birth on the consumer report shows that the
consumer has not attained the age of 21, such
consumer consents to the consumer reporting
agency to such furnishing.
(2) Limits on information received under paragraph
(1)(b).--A person may receive pursuant to paragraph
(1)(B) only--
(A) the name and address of a consumer;
(B) an identifier that is not unique to the
consumer and that is used by the person solely
for the purpose of verifying the identity of
the consumer; and
(C) other information pertaining to a
consumer that does not identify the
relationship or experience of the consumer with
respect to a particular creditor or other
entity.
(3) Information regarding inquiries.--Except as
provided in section 609(a)(5), a consumer reporting
agency shall not furnish to any person a record of
inquiries in connection with a credit or insurance
transaction that is not initiated by a consumer.
(d) Reserved.--
(e) Election of Consumer To Be Excluded From Lists.--
(1) In general.--A consumer may elect to have the
consumer's name and address excluded from any list
provided by a consumer reporting agency under
subsection (c)(1)(B) in connection with a credit or
insurance transaction that is not initiated by the
consumer by notifying the agency in accordance with
paragraph (2) that the consumer does not consent to any
use of a consumer report relating to the consumer in
connection with any credit or insurance transaction
that is not initiated by the consumer.
(2) Manner of notification.--A consumer shall notify
a consumer reporting agency under paragraph (1)--
(A) through the notification system
maintained by the agency under paragraph (5);
or
(B) by submitting to the agency a signed
notice of election form issued by the agency
for purposes of this subparagraph.
(3) Response of agency after notification through
system.--Upon receipt of notification of the election
of a consumer under paragraph (1) through the
notification system maintained by the agency under
paragraph (5), a consumer reporting agency shall--
(A) inform the consumer that the election is
effective only for the 5-year period following
the election if the consumer does not submit to
the agency a signed notice of election form
issued by the agency for purposes of paragraph
(2)(B); and
(B) provide to the consumer a notice of
election form, if requested by the consumer,
not later than 5 business days after receipt of
the notification of the election through the
system established under paragraph (5), in the
case of a request made at the time the consumer
provides notification through the system.
(4) Effectiveness of election.--An election of a
consumer under paragraph (1)--
(A) shall be effective with respect to a
consumer reporting agency beginning 5 business
days after the date on which the consumer
notifies the agency in accordance with
paragraph (2);
(B) shall be effective with respect to a
consumer reporting agency--
(i) subject to subparagraph (C),
during the 5-year period beginning 5
business days after the date on which
the consumer notifies the agency of the
election, in the case of an election
for which a consumer notifies the
agency only in accordance with
paragraph (2)(A); or
(ii) until the consumer notifies the
agency under subparagraph (C), in the
case of an election for which a
consumer notifies the agency in
accordance with paragraph (2)(B);
(C) shall not be effective after the date on
which the consumer notifies the agency, through
the notification system established by the
agency under paragraph (5), that the election
is no longer effective; and
(D) shall be effective with respect to each
affiliate of the agency.
(5) Notification system.--
(A) In general.--Each consumer reporting
agency that, under subsection (c)(1)(B),
furnishes a consumer report in connection with
a credit or insurance transaction that is not
initiated by a consumer shall--
(i) establish and maintain a
notification system, including a toll-
free telephone number, which permits
any consumer whose consumer report is
maintained by the agency to notify the
agency, with appropriate
identification, of the consumer's
election to have the consumer's name
and address excluded from any such list
of names and addresses provided by the
agency for such a transaction; and
(ii) publish by not later than 365
days after the date of enactment of the
Consumer Credit Reporting Reform Act of
1996, and not less than annually
thereafter, in a publication of general
circulation in the area served by the
agency--
(I) a notification that
information in consumer files
maintained by the agency may be
used in connection with such
transactions; and
(II) the address and toll-
free telephone number for
consumers to use to notify the
agency of the consumer's
election under clause (i).
(B) Establishment and maintenance as
compliance.--Establishment and maintenance of a
notification system (including a toll-free
telephone number) and publication by a consumer
reporting agency on the agency's own behalf and
on behalf of any of its affiliates in
accordance with this paragraph is deemed to be
compliance with this paragraph by each of those
affiliates.
(6) Notification system by agencies that operate
nationwide.--Each consumer reporting agency that
compiles and maintains files on consumers on a
nationwide basis shall establish and maintain a
notification system for purposes of paragraph (5)
jointly with other such consumer reporting agencies.
(f) Certain Use or Obtaining of Information Prohibited.--A
person shall not use or obtain a consumer report for any
purpose unless--
(1) the consumer report is obtained for a purpose for
which the consumer report is authorized to be furnished
under this section; and
(2) the purpose is certified in accordance with
section 607 by a prospective user of the report through
a general or specific certification.
(g) Protection of Medical Information.--
(1) Limitation on consumer reporting agencies.--A
consumer reporting agency shall not furnish for
employment purposes, or in connection with a credit or
insurance transaction, a consumer report that contains
medical information (other than medical contact
information treated in the manner required under
section 605(a)(6)) about a consumer, unless--
(A) if furnished in connection with an
insurance transaction, the consumer
affirmatively consents to the furnishing of the
report;
(B) if furnished for employment purposes or
in connection with a credit transaction--
(i) the information to be furnished
is relevant to process or effect the
employment or credit transaction; and
(ii) the consumer provides specific
written consent for the furnishing of
the report that describes in clear and
conspicuous language the use for which
the information will be furnished; or
(C) the information to be furnished pertains
solely to transactions, accounts, or balances
relating to debts arising from the receipt of
medical services, products, or devises, where
such information, other than account status or
amounts, is restricted or reported using codes
that do not identify, or do not provide
information sufficient to infer, the specific
provider or the nature of such services,
products, or devices, as provided in section
605(a)(6).
(2) Limitation on creditors.--Except as permitted
pursuant to paragraph (3)(C) or regulations prescribed
under paragraph (5)(A), a creditor shall not obtain or
use medical information (other than medical information
treated in the manner required under section 605(a)(6))
pertaining to a consumer in connection with any
determination of the consumer's eligibility, or
continued eligibility, for credit.
(3) Actions authorized by federal law, insurance
activities and regulatory determinations.--Section
603(d)(3) shall not be construed so as to treat
information or any communication of information as a
consumer report if the information or communication is
disclosed--
(A) in connection with the business of
insurance or annuities, including the
activities described in section 18B of the
model Privacy of Consumer Financial and Health
Information Regulation issued by the National
Association of Insurance Commissioners (as in
effect on January 1, 2003);
(B) for any purpose permitted without
authorization under the Standards for
Individually Identifiable Health Information
promulgated by the Department of Health and
Human Services pursuant to the Health Insurance
Portability and Accountability Act of 1996, or
referred to under section 1179 of such Act, or
described in section 502(e) of Public Law 106
102; or
(C) as otherwise determined to be necessary
and appropriate, by regulation or order, by the
Bureau or the applicable State insurance
authority (with respect to any person engaged
in providing insurance or annuities).
(4) Limitation on redisclosure of medical
information.--Any person that receives medical
information pursuant to paragraph (1) or (3) shall not
disclose such information to any other person, except
as necessary to carry out the purpose for which the
information was initially disclosed, or as otherwise
permitted by statute, regulation, or order.
(5) Regulations and effective date for paragraph
(2).--
(A) Regulations required.--The Bureau may,
after notice and opportunity for comment,
prescribe regulations that permit transactions
under paragraph (2) that are determined to be
necessary and appropriate to protect legitimate
operational, transactional, risk, consumer, and
other needs (and which shall include permitting
actions necessary for administrative
verification purposes), consistent with the
intent of paragraph (2) to restrict the use of
medical information for inappropriate purposes.
(6) Coordination with other laws.--No provision of
this subsection shall be construed as altering,
affecting, or superseding the applicability of any
other provision of Federal law relating to medical
confidentiality.
* * * * * * *
Sec. 607. Compliance procedures
(a) Every consumer reporting agency shall maintain reasonable
procedures designed to avoid violations of section 605 and to
limit the furnishing of consumer reports to the purposes listed
under section 604. These procedures shall require that
prospective users of the information identify themselves,
certify the purposes for which the information is sought, and
certify that the information will be used for no other purpose.
Every consumer reporting agency shall make a reasonable effort
to verify the identity of a new prospective user and the uses
certified by such prospective user prior to furnishing such
user a consumer report. No consumer reporting agency may
furnish a consumer report to any person if it has reasonable
grounds for believing that the consumer report will not be used
for a purpose listed in section 604.
[(b) Whenever a consumer reporting agency prepares a consumer
report it shall follow reasonable procedures to assure maximum
possible accuracy of the information concerning the individual
about whom the report relates.]
(b) Ensuring Accuracy.--
(1) In general.--In preparing a consumer report, each
consumer reporting agency shall follow reasonable
procedures to assure maximum possible accuracy of the
information concerning the consumer to whom the report
relates.
(2) Matching information in a file.--In assuring the
maximum possible accuracy under paragraph (1), each
consumer reporting agency described in section 603(p)
shall ensure that, when including information in the
file of a consumer, the consumer reporting agency--
(A) matches all 9 digits of the social
security number of the consumer with the
information that the consumer reporting agency
is including in the file; or
(B) if a consumer does not have a social
security number, matches information that
includes the full legal name, date of birth,
current address, and at least one former
address of the consumer.
(3) Periodic audits.--Each consumer reporting agency
shall perform periodic audits, on a schedule determined
by the Bureau, on a representative sample of consumer
reports of the agency to check for accuracy.
(c) Disclosure of Consumer Reports by Users Allowed.--A
consumer reporting agency may not prohibit a user of a consumer
report furnished by the agency on a consumer from disclosing
the contents of the report to the consumer, if adverse action
against the consumer has been taken by the user based in whole
or in part on the report.
(d) Notice to Users and Furnishers of Information.--
(1) Notice requirement.--A consumer reporting agency
shall provide to any person--
(A) who regularly and in the ordinary course
of business furnishes information to the agency
with respect to any consumer; or
(B) to whom a consumer report is provided by
the agency;
a notice of such person's responsibilities under this
title.
(2) Content of notice.--The Bureau shall prescribe
the content of notices under paragraph (1), and a
consumer reporting agency shall be in compliance with
this subsection if it provides a notice under paragraph
(1) that is substantially similar to the Bureau
prescription under this paragraph.
(e) Procurement of Consumer Report for Resale.--
(1) Disclosure.--A person may not procure a consumer
report for purposes of reselling the report (or any
information in the report) unless the person discloses
to the consumer reporting agency that originally
furnishes the report--
(A) the identity of the end-user of the
report (or information); and
(B) each permissible purpose under section
604 for which the report is furnished to the
end-user of the report (or information).
(2) Responsibilities of procurers for resale.--A
person who procures a consumer report for purposes of
reselling the report (or any information in the report)
shall--
(A) establish and comply with reasonable
procedures designed to ensure that the report
(or information) is resold by the person only
for a purpose for which the report may be
furnished under section 604, including by
requiring that each person to which the report
(or information) is resold and that resells or
provides the report (or information) to any
other person--
(i) identifies each end user of the
resold report (or information);
(ii) certifies each purpose for which
the report (or information) will be
used; and
(iii) certifies that the report (or
information) will be used for no other
purpose; and
(B) before reselling the report, make
reasonable efforts to verify the
identifications and certifications made under
subparagraph (A).
(3) Resale of consumer report to a federal agency or
department.--Notwithstanding paragraph (1) or (2), a
person who procures a consumer report for purposes of
reselling the report (or any information in the report)
shall not disclose the identity of the end-user of the
report under paragraph (1) or (2) if--
(A) the end user is an agency or department
of the United States Government which procures
the report from the person for purposes of
determining the eligibility of the consumer
concerned to receive access or continued access
to classified information (as defined in
section 604(b)(4)(E)(i)); and
(B) the agency or department certifies in
writing to the person reselling the report that
nondisclosure is necessary to protect
classified information or the safety of persons
employed by or contracting with, or undergoing
investigation for work or contracting with the
agency or department.
* * * * * * *
Sec. 609. Disclosures to consumers
(a) Every consumer reporting agency shall, upon request, and
subject to section 610(a)(1), clearly and accurately disclose
to the consumer:
(1) All information in the consumer's file at the
time of the request, except that--
(A) if the consumer to whom the file relates
requests that the first 5 digits of the social
security number (or similar identification
number) of the consumer not be included in the
disclosure and the consumer reporting agency
has received appropriate proof of the identity
of the requester, the consumer reporting agency
shall so truncate such number in such
disclosure; and
(B) nothing in this paragraph shall be
construed to require a consumer reporting
agency to disclose to a consumer any
information concerning credit scores or any
other risk scores or predictors relating to the
consumer.
(2) The sources of the information; except that the
sources of information acquired solely for use in
preparing an investigative consumer report and actually
used for no other purpose need not be disclosed:
Provided, That in the event an action is brought under
this title, such sources shall be available to the
plaintiff under appropriate discovery procedures in the
court in which the action is brought.
(3)(A) Identification of each person (including each
end-user identified under section 607(e)(1)) that
procured a consumer report--
(i) for employment purposes, during the 2-
year period preceding the date on which the
request is made; or
(ii) for any other purpose, during the 1-year
period preceding the date on which the request
is made.
(B) An identification of a person under subparagraph
(A) shall include--
(i) the name of the person or, if applicable,
the trade name (written in full) under which
such person conducts business; [and]
[(ii) upon request of the consumer, the
address and telephone number of the person.]
(ii) the address and telephone number of the
person; and
(iii) the permissible purpose, as available,
of the person for obtaining the consumer
report, including the specific type of credit
product that is extended, reviewed, or
collected, as described in section
604(a)(3)(A).
(C) Subparagraph (A) does not apply if--
(i) the end user is an agency or department
of the United States Government that procures
the report from the person for purposes of
determining the eligibility of the consumer to
whom the report relates to receive access or
continued access to classified information (as
defined in section 604(b)(4)(E)(i)); and
(ii) the head of the agency or department
makes a written finding as prescribed under
section 604(b)(4)(A).
(4) The dates, original payees, and amounts of any
checks upon which is based any adverse characterization
of the consumer, included in the file at the time of
the disclosure.
(5) A record of all inquiries received by the agency
during the 1-year period preceding the request that
identified the consumer in connection with a credit or
insurance transaction that was not initiated by the
consumer.
(6) If the consumer requests the credit file and not
the credit score, a statement that the consumer may
request and obtain a credit score.
(b) The requirements of subsection (a) respecting the
disclosure of sources of information and the recipients of
consumer reports do not apply to information received or
consumer reports furnished prior to the effective date of this
title except to the extent that the matter involved is
contained in the files of the consumer reporting agency on that
date.
(c) Summary of Rights To Obtain and Dispute Information in
Consumer Reports and To Obtain Credit Scores.--
(1) Commission summary of rights required.--
(A) In general.--The Commission shall prepare
a model summary of the rights of consumers
under this title.
(B) Content of summary.--The summary of
rights prepared under subparagraph (A) shall
include a description of--
(i) the right of a consumer to obtain
a copy of a consumer report under
subsection (a) from each consumer
reporting agency;
(ii) the frequency and circumstances
under which a consumer is entitled to
receive a consumer report without
charge under section 612;
(iii) the right of a consumer to
dispute information in the file of the
consumer under section 611;
(iv) the right of a consumer to
obtain a credit score from a consumer
reporting agency, and a description of
how to obtain a credit score;
(v) the method by which a consumer
can contact, and obtain a consumer
report from, a consumer reporting
agency without charge, as provided in
the regulations of the Bureau
prescribed under section 211(c) of the
Fair and Accurate Credit Transactions
Act of 2003; and
(vi) the method by which a consumer
can contact, and obtain a consumer
report from, a consumer reporting
agency described in section 603(w), as
provided in the regulations of the
Bureau prescribed under section
612(a)(1)(C).
(C) Availability of summary of rights.--The
Commission shall--
(i) actively publicize the
availability of the summary of rights
prepared under this paragraph;
(ii) conspicuously post on its
Internet website the availability of
such summary of rights; and
(iii) promptly make such summary of
rights available to consumers, on
request.
(2) Summary of rights required to be included with
agency disclosures.--A consumer reporting agency shall
provide to a consumer, with each written disclosure by
the agency to the consumer under this section--
(A) the summary of rights prepared by the
Bureau under paragraph (1);
(B) in the case of a consumer reporting
agency described in section 603(p), 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) Summary of Rights of Identity Theft Victims.--
(1) In general.--The Commission, in consultation with
the Federal banking agencies and the National Credit
Union Administration, shall prepare a model summary of
the rights of consumers under this title with respect
to the procedures for remedying the effects of fraud or
identity theft involving credit, an electronic fund
transfer, or an account or transaction at or with a
financial institution or other creditor.
(2) Summary of rights and contact information.--
Beginning 60 days after the date on which the model
summary of rights is prescribed in final form by the
Bureau pursuant to paragraph (1), if any consumer
contacts a consumer reporting agency and expresses a
belief that the consumer is a victim of fraud or
identity theft involving credit, an electronic fund
transfer, or an account or transaction at or with a
financial institution or other creditor, the consumer
reporting agency shall, in addition to any other action
that the agency may take, provide the consumer with a
summary of rights that contains all of the information
required by the Bureau under paragraph (1), and
information on how to contact the Bureau to obtain more
detailed information.
(e) Information Available to Victims.--
(1) In general.--For the purpose of documenting
fraudulent transactions resulting from identity theft,
not later than 30 days after the date of receipt of a
request from a victim in accordance with paragraph (3),
and subject to verification of the identity of the
victim and the claim of identity theft 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 Bureau; 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.
(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]
(A) supply the consumer with a credit score
through the portal established under section
612(a)(1)(D) or upon request by the consumer,
as applicable, that--
(i) is derived from a credit scoring
model that is widely distributed to
users by that consumer reporting agency
for the purpose of any extension of
credit or other transaction designated
by the consumer who is requesting the
credit score; or
(ii) is widely distributed to lenders
of common consumer loan products and
predicts the future credit behavior of
the consumer; and
(B) a statement indicating that the
information and credit scoring model may be
different than that used by the lender.
(8) Fair and reasonable fee.--A consumer reporting
agency may charge a fair and reasonable fee, as
determined by the Bureau, for providing the information
required under this subsection, except that a credit
score shall be provided free of charge to the consumer
if requested in connection with a free annual consumer
report described in section 612(a) or through the
online consumer portal landing page established under
section 612(a)(1)(D)
(9) Use of enquiries as a key factor.--If a key
factor that adversely affects the credit score of a
consumer consists of the number of enquiries made with
respect to a consumer report, that factor shall be
included in the disclosure pursuant to paragraph (1)(C)
without regard to the numerical limitation in such
paragraph.
(g) Disclosure of Credit Scores by Certain Mortgage
Lenders.--
(1) In general.--Any person who makes or arranges
loans and who uses a consumer credit score, as defined
in subsection (f), in connection with an application
initiated or sought by a consumer for a closed end loan
or the establishment of an open end loan for a consumer
purpose that is secured by 1 to 4 units of residential
real property (hereafter in this subsection referred to
as the ``lender'') shall provide the following to the
consumer as soon as reasonably practicable:
(A) Information required under subsection
(f).--
(i) In general.--A copy of the
information identified in subsection
(f) that was obtained from a consumer
reporting agency or was developed and
used by the user of the information.
(ii) Notice under [subparagraph (d)]
subparagraph (c).--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)] subparagraph (C)
(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)] (C) 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)] (D) 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)] (E) 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)] (F) Person defined as excluding
enterprise.--As used in this subsection, the
term ``person'' does not include an enterprise
(as defined in paragraph (6) of section 1303 of
the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992).
(2) Prohibition on disclosure clauses null and
void.--
(A) In general.--Any provision in a contract
that prohibits the disclosure of a credit score
by a person who makes or arranges loans or a
consumer reporting agency is void.
(B) No liability for disclosure under this
subsection.--A lender shall not have liability
under any contractual provision for disclosure
of a credit score pursuant to this subsection.
* * * * * * *
Sec. 611. Procedure in case of disputed
accuracy
(a) Reinvestigations of Disputed Information.--
(1) Reinvestigation required.--
(A) In general.--Subject to subsection (f)
and except as provided in subsection (g), if
the completeness or accuracy of any item of
information contained in a consumer's file at a
consumer reporting agency is disputed by the
consumer and the consumer notifies the agency
directly, or indirectly through a reseller, of
such dispute, the agency shall, free of charge,
conduct a reasonable reinvestigation to
determine whether the disputed information is
inaccurate and record the current status of the
disputed information, or delete the item from
the file in accordance with paragraph (5),
before the end of the 30-day period beginning
on the date on which the agency receives the
notice of the dispute from the consumer or
reseller.
(B) Extension of period to reinvestigate.--
Except as provided in subparagraph (C), the 30-
day period described in subparagraph (A) may be
extended for not more than 15 additional days
if the consumer reporting agency receives
information from the consumer during that 30-
day period that is relevant to the
reinvestigation.
(C) Limitations on extension of period to
reinvestigate.--Subparagraph (B) shall not
apply to any reinvestigation in which, during
the 30-day period described in subparagraph
(A), the information that is the subject of the
reinvestigation is found to be inaccurate or
incomplete or the consumer reporting agency
determines that the information cannot be
verified.
(D) Obligations of consumer reporting
agencies relating to reinvestigations.--
Commensurate with the volume and complexity of
disputes about which a consumer reporting
agency receives notice, or reasonably
anticipates to receive notice, under this
paragraph, each consumer reporting agency
shall--
(i) maintain sufficient personnel to
conduct reinvestigations of those
disputes; and
(ii) provide training with respect to
the personnel described in clause (i).
(2) Prompt notice of dispute to furnisher of
information.--
(A) In general.--Before the expiration of the
5-business-day period beginning on the date on
which a consumer reporting agency receives
notice of a dispute from any consumer or a
reseller in accordance with paragraph (1), the
agency shall provide notification of the
dispute to any person who provided any item of
information in dispute, at the address and in
the manner established with the person. The
notice shall include all relevant information
regarding the dispute that the agency has
received from the consumer or reseller.
(B) Provision of other information.--The
consumer reporting agency shall promptly
provide to the person who provided the
information in dispute all relevant information
regarding the dispute that is received by the
agency from the consumer or the reseller after
the period referred to in subparagraph (A) and
before the end of the period referred to in
paragraph (1)(A).
(3) Determination that dispute is frivolous or
irrelevant.--
(A) In general.--Notwithstanding paragraph
(1), a consumer reporting agency may terminate
a reinvestigation of information disputed by a
consumer under that paragraph if the agency
reasonably determines that the dispute by the
consumer is frivolous or irrelevant, including
by reason of a failure by a consumer to provide
sufficient information to investigate the
disputed information.
(B) Notice of determination.--Upon making any
determination in accordance with subparagraph
(A) that a dispute is frivolous or irrelevant,
a consumer reporting agency 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 agency.
(C) Contents of notice.--A notice under
subparagraph (B) shall include--
(i) the reasons for the determination
under subparagraph (A); 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.
(4) Consideration of consumer information.--In
conducting any reinvestigation under paragraph (1) with
respect to disputed information in the file of any
consumer, the consumer reporting agency shall review
and consider all relevant information submitted by the
consumer in the period described in paragraph (1)(A)
with respect to such disputed information.
(5) Treatment of inaccurate or unverifiable
information.--
(A) In general.--If, after any
reinvestigation under paragraph (1) of any
information disputed by a consumer, an item of
the information is found to be inaccurate or
incomplete or cannot be verified, the consumer
reporting agency 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) Requirements relating to reinsertion of
previously deleted material.--
(i) Certification of accuracy of
information.--If any information is
deleted from a consumer's file pursuant
to subparagraph (A), the information
may not be reinserted in the file by
the consumer reporting agency unless
the person who furnishes the
information certifies that the
information is complete and accurate.
(ii) Notice to consumer.--If any
information that has been deleted from
a consumer's file pursuant to
subparagraph (A) is reinserted in the
file, the consumer reporting agency
shall notify the consumer of the
reinsertion in writing not later than 5
business days after the reinsertion or,
if authorized by the consumer for that
purpose, by any other means available
to the agency.
(iii) Additional information.--As
part of, or in addition to, the notice
under clause (ii), a consumer reporting
agency shall provide to a consumer in
writing not later than 5 business days
after the date of the reinsertion--
(I) a statement that the
disputed information has been
reinserted;
(II) the business name and
address of any furnisher of
information contacted and the
telephone number of such
furnisher, if reasonably
available, or of any furnisher
of information that contacted
the consumer reporting agency,
in connection with the
reinsertion of such
information; and
(III) a notice that the
consumer has the right to add a
statement to the consumer's
file disputing the accuracy or
completeness of the disputed
information.
(C) Procedures to prevent reappearance.--A
consumer reporting agency shall maintain
reasonable procedures designed to prevent the
reappearance in a consumer's file, and in
consumer reports on the consumer, of
information that is deleted pursuant to this
paragraph (other than information that is
reinserted in accordance with subparagraph
(B)(i)).
(D) Automated reinvestigation system.--Any
consumer reporting agency that compiles and
maintains files on consumers on a nationwide
basis shall implement an automated system
through which furnishers of information to that
consumer reporting agency may report the
results of a reinvestigation that finds
incomplete or inaccurate information in a
consumer's file to other such consumer
reporting agencies.
(6) Notice of results of reinvestigation.--
(A) In general.--A consumer reporting agency
shall provide written notice to a consumer of
the results of a reinvestigation under this
subsection not later than 5 business days after
the completion of the reinvestigation, by mail
or, if authorized by the consumer for that
purpose, by other means available to the
agency.
(B) Contents.--As part of, or in addition to,
the notice under subparagraph (A), a consumer
reporting agency shall provide to a consumer in
writing before the expiration of the 5-day
period referred to in subparagraph (A)--
(i) a statement that the
reinvestigation is completed;
[(ii) a consumer report that is based
upon the consumer's file as that file
is revised as a result of the
reinvestigation;
[(iii) a notice that, if requested by
the consumer, a description of the
procedure used to determine the
accuracy and completeness of the
information shall be provided to the
consumer by the agency, including the
business name and address of any
furnisher of information contacted in
connection with such information and
the telephone number of such furnisher,
if reasonably available;]
(ii) a copy of the consumer's file
and a consumer report that is based
upon such file as revised, including a
description of the specific
modification or deletion of
information, as a result of the
reinvestigation;
(iii) a description of the actions
taken by the consumer reporting agency
regarding the dispute;
(iv) if applicable, contact
information for any furnisher involved
in responding to the dispute and a
description of the role played by the
furnisher in the reinvestigation
process;
(v) the options available to the
consumer if the consumer is
dissatisfied with the result of the
reinvestigation, including--
(I) submitting documents in
support of the dispute;
(II) adding a consumer
statement of dispute to the
file of the consumer pursuant
to subsection (b);
(III) filing a dispute with
the furnisher pursuant to
section 623(a)(8); and
(IV) submitting a complaint
against the consumer reporting
agency or furnishers through
the consumer complaint database
of the Bureau or the State
attorney general for the State
in which the consumer resides;
[(iv)] (vi) a notice that the
consumer has the right to add a
statement to the consumer's file
disputing the accuracy or completeness
of the information; and
[(v)] (vii) a notice that the
consumer has the right to request under
subsection (d) that the consumer
reporting agency furnish notifications
under that subsection.
[(7) Description of reinvestigation procedure.--A
consumer reporting agency shall provide to a consumer a
description referred to in paragraph (6)(B)(iii) by not
later than 15 days after receiving a request from the
consumer for that description.]
[(8)] (7) Expedited dispute resolution.--If a dispute
regarding an item of information in a consumer's file
at a consumer reporting agency is resolved in
accordance with paragraph (5)(A) by the deletion of the
disputed information by not later than 3 business days
after the date on which the agency receives notice of
the dispute from the consumer in accordance with
paragraph (1)(A), then the agency shall not be required
to comply with [paragraphs (2), (6), and (7)]
paragraphs (2) and (6) with respect to that dispute if
the agency--
(A) provides prompt notice of the deletion to
the consumer by telephone;
(B) includes in that notice, or in a written
notice that accompanies a confirmation and
consumer report provided in accordance with
subparagraph (C), a statement of the consumer's
right to request under subsection (d) that the
agency furnish notifications under that
subsection; and
(C) provides written confirmation of the
deletion and a copy of a consumer report on the
consumer that is based on the consumer's file
after the deletion, not later than 5 business
days after making the deletion.
(8) Bureau credit reporting ombudsperson.--
(A) In general.--Not later than 180 days
after the date of enactment of this paragraph,
the Bureau shall establish the position of
credit reporting ombudsperson, whose specific
duties shall include carrying out the Bureau's
responsibilities with respect to--
(i) resolving persistent errors that
are not resolved in a timely manner by
a consumer reporting agency; and
(ii) enhancing oversight of consumer
reporting agencies by--
(I) advising the Director of
the Bureau, in consultation
with the Office of Enforcement
and the Office of Supervision
of the Bureau, on any potential
violations of paragraph (5) or
any other applicable law by a
consumer reporting agency,
including appropriate
corrective action for such a
violation; and
(II) making referrals to the
Office of Supervision for
supervisory action or the
Office of Enforcement for
enforcement action, as
appropriate, in response to
violations of paragraph (5) or
any other applicable law by a
consumer reporting agency.
(B) Report.--The ombudsperson shall submit to
the Committee on Financial Services of the
House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the
Senate an annual report including statistics
and analysis on consumer complaints the Bureau
receives relating to consumer reports, as well
as a summary of the supervisory actions and
enforcement actions taken with respect to
consumer reporting agencies during the year
covered by the report.
(b) If the reinvestigation does not resolve the dispute, the
consumer may file a brief statement setting forth the nature of
the dispute. The consumer reporting agency may limit such
statements to not more than one hundred words if it provides
the consumer with assistance in writing a clear summary of the
dispute.
(c) Whenever a statement of a dispute is filed, unless there
is reasonable grounds to believe that it is frivolous or
irrevelant, the consumer reporting agency shall, in any
subsequent consumer report containing the information in
question, clearly note that it is disputed by the consumer and
provide either the consumer's statement or a clear and accurate
codification or summary thereof.
(d) Following any deletion of information which is found to
be inaccurate or whose accuracy can no longer be verified or
any notation as to disputed information, the consumer reporting
agency shall, at the request of the consumer, furnish
notification that the item has been deleted or the statement,
codification or summary pursuant to subsection (b) or (c) to
any person specifically designated by the consumer who has
within two years prior thereto received a consumer report for
employment purposes, or within six months prior thereto
received a consumer report for any other purpose, which
contained the deleted or disputed information.
(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 Bureau pursuant to its investigative authority
under the Consumer Financial Protection Act of 2010
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 Bureau 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
Bureau 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 Bureau may prescribe
regulations, as appropriate to implement this
subsection.
(5) Annual report.--The Bureau 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 Bureau under this
subsection.
(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.
(g) Dispute Process for Veteran's Medical Debt.--
(1) In general.--With respect to a veteran's medical
debt, the veteran may submit a notice described in
paragraph (2), proof of liability of the Department of
Veterans Affairs for payment of that debt, or
documentation that the Department of Veterans Affairs
is in the process of making payment for authorized
hospital care, medical services, or extended care
services rendered to a consumer reporting agency or a
reseller to dispute the inclusion of that debt on a
consumer report of the veteran.
(2) Notification to veteran.--The Department of
Veterans Affairs shall submit to a veteran a notice
that the Department of Veterans Affairs has assumed
liability for part or all of a veteran's medical debt.
(3) Deletion of information from file.--If a consumer
reporting agency receives notice, proof of liability,
or documentation under paragraph (1), the consumer
reporting agency shall delete all information relating
to the veteran's medical debt from the file of the
veteran and notify the furnisher and the veteran of
that deletion.
(h) Notification of Deletion of Information.--A consumer
reporting agency described in section 603(p) shall communicate
with other consumer reporting agencies described in section
603(p) to ensure that a dispute initiated with one consumer
reporting agency is noted in a file maintained by such other
consumer reporting agencies.
SEC. 612. CHARGES FOR CERTAIN DISCLOSURES.
(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
Bureau 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 Bureau
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 Bureau
determines appropriate).
(D) Online consumer portal landing page.--
(i) In general.--Not later than 1
year after the date of enactment of
this subparagraph, each consumer
reporting agency described in section
603(p) shall jointly develop an online
consumer portal landing page that gives
each consumer unlimited free access
to--
(I) the consumer report of
the consumer;
(II) the means by which the
consumer may exercise the
rights of the consumer under
subparagraph (E) and section
604(e);
(III) the ability to initiate
a dispute with the consumer
reporting agency regarding the
accuracy or completeness of any
information in a report in
accordance with section 611(a)
or 623(a)(8);
(IV) the ability to place and
remove a security freeze on a
consumer report for free under
section 605A(i) and (j);
(V) if the consumer reporting
agency offers a product to
consumers to prevent access to
the consumer report of the
consumer for the purpose of
preventing identity theft, a
disclosure to the consumer
regarding the differences
between that product and a
security freeze as defined
under section 605A(i) or (j);
(VI) information on who has
accessed the consumer report of
the consumer over the last 24
months, and, as available, for
what permissible purpose the
consumer report was furnished
in accordance with section 604
and section 609; and
(VII) the credit score of the
consumer in accordance with
section 609(f)(7).
(ii) No waiver.--A consumer reporting
agency described in section 603(p) may
not require a consumer to waive any
legal or privacy rights to access--
(I) a portal established
under this subparagraph; or
(II) any of the services
described in clause (i) that
are provided through a portal
established under this
subparagraph.
(iii) No advertising or
solicitations.--A portal established
under this subparagraph may not contain
any advertising, marketing offers, or
other solicitations.
(iv) Extension.--The Bureau may allow
the consumer reporting agencies an
extension of 1 year to develop the
online consumer portal landing page
required under clause (i).
(v) Rule of construction.--Nothing in
this subparagraph may be construed as
requiring a consumer reporting agency
to disclose confidential proprietary
information through the online consumer
portal landing page.
(E) Opt-out option.--
(i) In general.--If a consumer
reporting agency sells consumer
information in a manner that is not
included in a consumer report, the
consumer reporting agency shall provide
each consumer with a method (through a
website, by phone, or in writing) by
which the consumer may elect, free of
charge, to not have the information of
the consumer so sold.
(ii) No expiration.--An election made
by a consumer under clause (i) shall
expire on the date on which the
consumer expressly revokes the election
through a website, by phone, or in
writing.
(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.
[(b) Free Disclosure After Adverse Notice to Consumer.--Each
consumer reporting agency that maintains a file on a consumer
shall make all disclosures pursuant to section 609 without
charge to the consumer if, not later than 60 days after receipt
by such consumer of a notification pursuant to section 615, or
of a notification from a debt collection agency affiliated with
that consumer reporting agency stating that the consumer's
credit rating may be or has been adversely affected, the
consumer makes a request under section 609.]
(b) Free Disclosure After Notice of Adverse Action or Offer
of Credit on Materially Less Favorable Term.--Not later than 30
days after the date on which a consumer reporting agency
receives a notification under subsection (a)(2) or (h)(6) of
section 615, or from a debt collection agency affiliated with
the consumer reporting agency, the consumer reporting agency
shall make to a consumer, without charge to the consumer, all
disclosures that are made to a user of a consumer report in
accordance with the rules prescribed by the Bureau.
(c) Free Disclosure Under Certain Other Circumstances.--Upon
the request of the consumer, a consumer reporting agency shall
make all disclosures pursuant to section 609 once during any
12-month period without charge to that consumer if the consumer
certifies in writing that the consumer--
(1) is unemployed and intends to apply for employment
in the 60-day period beginning on the date on which the
certification is made;
(2) is a recipient of public welfare assistance; or
(3) has reason to believe that the file on the
consumer at the agency contains inaccurate information
due to fraud.
(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.
(e) Other Charges Prohibited.--A consumer reporting agency
shall not impose any charge on a consumer for providing any
notification required by this title or making any disclosure
required by this title, except as authorized by subsection (f).
(f) Reasonable Charges Allowed for Certain Disclosures.--
(1) In general.--In the case of a request from a
consumer other than a request that is covered by any of
subsections (a) through (d), or that is made through
the online consumer portal landing page established
under subsection (a)(1)(D), a consumer reporting agency
may impose a reasonable charge on a consumer--
(A) for making a disclosure to the consumer
pursuant to section 609, which charge--
(i) shall not exceed $8; and
(ii) shall be indicated to the
consumer before making the disclosure;
and
(B) for furnishing, pursuant to section
611(d), following a reinvestigation under
section 611(a), a statement, codification, or
summary to a person designated by the consumer
under that section after the 30-day period
beginning on the date of notification of the
consumer under paragraph (6) or (8) of section
611(a) with respect to the reinvestigation,
which charge--
(i) shall not exceed the charge that
the agency would impose on each
designated recipient for a consumer
report; and
(ii) shall be indicated to the
consumer before furnishing such
information.
(2) Modification of amount.--The Bureau shall
increase the amount referred to in paragraph (1)(A)(i)
on January 1 of each year, based proportionally on
changes in the Consumer Price Index, with fractional
changes rounded to the nearest fifty cents.
(g) Prevention of Deceptive Marketing of Credit Reports.--
(1) In general.--Subject to rulemaking pursuant to
section 205(b) of the Credit CARD Act of 2009, any
advertisement for a free credit report in any medium
shall prominently disclose in such advertisement that
free credit reports are available under Federal law at:
``AnnualCreditReport.com'' (or such other source as may
be authorized under Federal law).
(2) Television and radio advertisement.--In the case
of an advertisement broadcast by television, the
disclosures required under paragraph (1) shall be
included in the audio and visual part of such
advertisement. In the case of an advertisement
broadcast by televison or radio, the disclosure
required under paragraph (1) shall consist only of the
following: ``This is not the free credit report
provided for by Federal law''.
* * * * * * *
Sec. 615. Requirements on users of consumer reports
(a) Duties of Users Taking Adverse Actions on the Basis of
Information Contained in Consumer Reports.--If any person takes
any adverse action with respect to any consumer that is based
in whole or in part on any information contained in a consumer
report, the person shall--
(1) provide oral, written, or electronic notice of
the adverse action to the consumer;
(2) direct the consumer reporting agency that
provided the consumer report that was used in the
decision to take the adverse action to provide the
consumer with the disclosures described in section
612(b);
[(2)] (3) provide to the consumer written or
electronic disclosure--
(A) of a numerical credit score as defined in
section 609(f)(2)(A) used by such person in
taking any adverse action based in whole or in
part on any information in a consumer report;
and
(B) of the information set forth in
subparagraphs (B) through (E) of section
609(f)(1);
[(3)] (4) provide to the consumer orally, in writing,
or electronically--
(A) the name, address, and telephone number
of the consumer reporting agency (including a
toll-free telephone number established by the
agency if the agency compiles and maintains
files on consumers on a nationwide basis) that
furnished the report to the person; and
(B) a statement that the consumer reporting
agency did not make the decision to take the
adverse action and is unable to provide the
consumer the specific reasons why the adverse
action was taken; and
[(4)] (5) provide to the consumer an oral, written,
or electronic notice [of the consumer's right]--
[(A) to obtain, under section 612, a free
copy of a consumer report on the consumer from
the consumer reporting agency referred to in
paragraph (3), which notice shall include an
indication of the 60-day period under that
section for obtaining such a copy; and]
(A) that the consumer shall receive a copy of
the consumer report with respect to the
consumer, free of charge, from the consumer
reporting agency that furnished the consumer
report; and
(B) of the right of the consumer to dispute,
under section 611, with a consumer reporting
agency the accuracy or completeness of any
information in a consumer report furnished by
the agency.
(b) Adverse Action Based on Information Obtained From Third
Parties Other Than Consumer Reporting Agencies.--
(1) In general.--Whenever credit for personal,
family, or household purposes involving a consumer is
denied or the charge for such credit is increased
either wholly or partly because of information obtained
from a person other than a consumer reporting agency
bearing upon the consumer's credit worthiness, credit
standing, credit capacity, character, general
reputation, personal characteristics, or mode of
living, the user of such information shall, within a
reasonable period of time, upon the consumer's written
request for the reasons for such adverse action
received within sixty days after learning of such
adverse action, disclose the nature of the information
to the consumer. The user of such information shall
clearly and accurately disclose to the consumer his
right to make such written request at the time such
adverse action is communicated to the consumer.
(2) Duties of person taking certain actions based on
information provided by affiliate.--
(A) Duties, generally.--If a person takes an
action described in subparagraph (B) with
respect to a consumer, based in whole or in
part on information described in subparagraph
(C), the person shall--
(i) notify the consumer of the
action, including a statement that the
consumer may obtain the information in
accordance with clause (ii); and
(ii) upon a written request from the
consumer received within 60 days after
transmittal of the notice required by
clause (i), disclose to the consumer
the nature of the information upon
which the action is based by not later
than 30 days after receipt of the
request.
(B) Action described.--An action referred to
in subparagraph (A) is an adverse action
described in section 603(k)(1)(A), taken in
connection with a transaction initiated by the
consumer, or any adverse action described in
clause (i) or (ii) of section 603(k)(1)(B).
(C) Information described.--Information
referred to in subparagraph (A)--
(i) except as provided in clause
(ii), is information that--
(I) is furnished to the
person taking the action by a
person related by common
ownership or affiliated by
common corporate control to the
person taking the action; and
(II) bears on the credit
worthiness, credit standing,
credit capacity, character,
general reputation, personal
characteristics, or mode of
living of the consumer; and
(ii) does not include--
(I) information solely as to
transactions or experiences
between the consumer and the
person furnishing the
information; or
(II) information in a
consumer report.
(c) No person shall be held liable for any violation of this
section if he shows by a preponderance of the evidence that at
the time of the alleged violation he maintained reasonable
procedures to assure compliance with the provisions of this
section.
(d) Duties of Users Making Written Credit or Insurance
Solicitations on the Basis of Information Contained in Consumer
Files.--
(1) In general.--Any person who uses a consumer
report on any consumer in connection with any credit or
insurance transaction that is not initiated by the
consumer, that is provided to that person under section
604(c)(1)(B), shall provide with each written
solicitation made to the consumer regarding the
transaction a clear and conspicuous statement that--
(A) information contained in the consumer's
consumer report was used in connection with the
transaction;
(B) the consumer received the offer of credit
or insurance because the consumer satisfied the
criteria for credit worthiness or insurability
under which the consumer was selected for the
offer;
(C) if applicable, the credit or insurance
may not be extended if, after the consumer
responds to the offer, the consumer does not
meet the criteria used to select the consumer
for the offer or any applicable criteria
bearing on credit worthiness or insurability or
does not furnish any required collateral;
(D) the consumer has a right to prohibit
information contained in the consumer's file
with any consumer reporting agency from being
used in connection with any credit or insurance
transaction that is not initiated by the
consumer; and
(E) the consumer may exercise the right
referred to in subparagraph (D) by notifying a
notification system established under section
604(e).
(2) Disclosure of address and telephone number;
format.--A statement under paragraph (1) shall--
(A) include the address and toll-free
telephone number of the appropriate
notification system established under section
604(e); and
(B) be presented in such format and in such
type size and manner as to be simple and easy
to understand, as established by the Bureau, by
rule, in consultation with the Federal Trade
Commission, the Federal banking agencies, and
the National Credit Union Administration.
(3) Maintaining criteria on file.--A person who makes
an offer of credit or insurance to a consumer under a
credit or insurance transaction described in paragraph
(1) shall maintain on file the criteria used to select
the consumer to receive the offer, all criteria bearing
on credit worthiness or insurability, as applicable,
that are the basis for determining whether or not to
extend credit or insurance pursuant to the offer, and
any requirement for the furnishing of collateral as a
condition of the extension of credit or insurance,
until the expiration of the 3-year period beginning on
the date on which the offer is made to the consumer.
(4) Authority of federal agencies regarding unfair or
deceptive acts or practices not affected.--This section
is not intended to affect the authority of any Federal
or State agency to enforce a prohibition against unfair
or deceptive acts or practices, including the making of
false or misleading statements in connection with a
credit or insurance transaction that is not initiated
by the consumer.
(e) Red Flag Guidelines and Regulations Required.--
(1) Guidelines.--The Federal banking agencies, the
National Credit Union Administration, the Federal Trade
Commission, the Commodity Futures Trading Commission,
and the Securities and Exchange Commission shall
jointly, with respect to the entities that are subject
to their respective enforcement authority under section
621--
(A) establish and maintain guidelines for use
by each financial institution and each creditor
regarding identity theft with respect to
account holders at, or customers of, such
entities, and update such guidelines as often
as necessary;
(B) prescribe regulations requiring each
financial institution and each creditor to
establish reasonable policies and procedures
for implementing the guidelines established
pursuant to subparagraph (A), to identify
possible risks to account holders or customers
or to the safety and soundness of the
institution or customers; and
(C) prescribe regulations applicable to card
issuers to ensure that, if a card issuer
receives notification of a change of address
for an existing account, and within a short
period of time (during at least the first 30
days after such notification is received)
receives a request for an additional or
replacement card for the same account, the card
issuer may not issue the additional or
replacement card, unless the card issuer, in
accordance with reasonable policies and
procedures--
(i) notifies the cardholder of the
request at the former address of the
cardholder and provides to the
cardholder a means of promptly
reporting incorrect address changes;
(ii) notifies the cardholder of the
request by such other means of
communication as the cardholder and the
card issuer previously agreed to; or
(iii) uses other means of assessing
the validity of the change of address,
in accordance with reasonable policies
and procedures established by the card
issuer in accordance with the
regulations prescribed under
subparagraph (B).
(2) Criteria.--
(A) In general.--In developing the guidelines
required by paragraph (1)(A), the agencies
described in paragraph (1) shall identify
patterns, practices, and specific forms of
activity that indicate the possible existence
of identity theft.
(B) Inactive accounts.--In developing the
guidelines required by paragraph (1)(A), the
agencies described in paragraph (1) shall
consider including reasonable guidelines
providing that when a transaction occurs with
respect to a credit or deposit account that has
been inactive for more than 2 years, the
creditor or financial institution shall follow
reasonable policies and procedures that provide
for notice to be given to a consumer in a
manner reasonably designed to reduce the
likelihood of identity theft with respect to
such account.
(3) Consistency with verification requirements.--
Guidelines established pursuant to paragraph (1) shall
not be inconsistent with the policies and procedures
required under section 5318(l) of title 31, United
States Code.
(4) Definitions.--As used in this subsection, the
term ``creditor''--
(A) means a creditor, as defined in section
702 of the Equal Credit Opportunity Act (15
U.S.C. 1691a), that regularly and in the
ordinary course of business--
(i) obtains or uses consumer reports,
directly or indirectly, in connection
with a credit transaction;
(ii) furnishes information to
consumer reporting agencies, as
described in section 623, in connection
with a credit transaction; or
(iii) advances funds to or on behalf
of a person, based on an obligation of
the person to repay the funds or
repayable from specific property
pledged by or on behalf of the person;
(B) does not include a creditor described in
subparagraph (A)(iii) that advances funds on
behalf of a person for expenses incidental to a
service provided by the creditor to that
person; and
(C) includes any other type of creditor, as
defined in that section 702, as the agency
described in paragraph (1) having authority
over that creditor may determine appropriate by
rule promulgated by that agency, based on a
determination that such creditor offers or
maintains accounts that are subject to a
reasonably foreseeable risk of identity theft.
(f) Prohibition on Sale or Transfer of Debt Caused by
Identity Theft.--
(1) In general.--No person shall sell, transfer for
consideration, or place for collection a debt that such
person has been notified under section 605B has
resulted from identity theft.
(2) Applicability.--The prohibitions of this
subsection shall apply to all persons collecting a debt
described in paragraph (1) after the date of a
notification under paragraph (1).
(3) Rule of construction.--Nothing in this subsection
shall be construed to prohibit--
(A) the repurchase of a debt in any case in
which the assignee of the debt requires such
repurchase because the debt has resulted from
identity theft;
(B) the securitization of a debt or the
pledging of a portfolio of debt as collateral
in connection with a borrowing; or
(C) the transfer of debt as a result of a
merger, acquisition, purchase and assumption
transaction, or transfer of substantially all
of the assets of an entity.
(g) Debt Collector Communications Concerning Identity
Theft.--If a person acting as a debt collector (as that term is
defined in title VIII) on behalf of a third party that is a
creditor or other user of a consumer report is notified that
any information relating to a debt that the person is
attempting to collect may be fraudulent or may be the result of
identity theft, that person shall--
(1) notify the third party that the information may
be fraudulent or may be the result of identity theft;
and
(2) upon request of the consumer to whom the debt
purportedly relates, provide to the consumer all
information to which the consumer would otherwise be
entitled if the consumer were not a victim of identity
theft, but wished to dispute the debt under provisions
of law applicable to that person.
(h) Duties of Users in Certain Credit Transactions.--
(1) In general.--Subject to rules prescribed as
provided in [paragraph (6)] paragraph (7), 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)] paragraph (7)
(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] shall
receive a copy of a consumer report from that
consumer reporting agency without charge;
(D) include the contact information specified
by that consumer reporting agency for obtaining
such consumer reports (including a toll-free
telephone number established by the agency in
the case of a consumer reporting agency
described in section 603(p)); and
(E) include a statement informing the
consumer of--
(i) a numerical credit score as
defined in section 609(f)(2)(A), used
by such person in making the credit
decision described in paragraph (1)
based in whole or in part on any
information in a consumer report; and
(ii) the information set forth in
subparagraphs (B) through (E) of
section 609(f)(1).
(6) Reports provided to consumers.--A person who uses
a consumer report as described in paragraph (1) shall
notify and direct the consumer reporting agency that
provided the consumer report to provide the consumer
with the disclosures described in section 612(b).
[(6)] (7) Rulemaking.--
(A) Rules required.--The Bureau shall
prescribe rules to carry out this subsection.
(B) Content.--Rules required by subparagraph
(A) shall address, but are not limited to--
(i) the form, content, time, and
manner of delivery of any notice under
this subsection;
(ii) clarification of the meaning of
terms used in this subsection,
including what credit terms are
material, and when credit terms are
materially less favorable;
(iii) exceptions to the notice
requirement under this subsection for
classes of persons or transactions
regarding which the agencies determine
that notice would not significantly
benefit consumers;
(iv) a model notice that may be used
to comply with this subsection; and
(v) the timing of the notice required
under paragraph (1), including the
circumstances under which the notice
must be provided after the terms
offered to the consumer were set based
on information from a consumer report.
[(7)] (8) 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)] (9) Enforcement.--
(A) No civil actions.--Sections 616 and 617
shall not apply to any failure by any person to
comply with this [section] subsection
(B) Administrative enforcement.--[This
section] This subsection shall be enforced
exclusively under section 621 by the Federal
agencies and officials identified in that
section.
Sec. 616. Civil liability for willful noncompliance
(a) [In General.--] Damages._Any person who willfully fails
to comply with any requirement imposed under this title with
respect to any consumer is liable to that consumer in an amount
equal to the sum of--
(1)(A) any actual damages sustained by the consumer
as a result of the failure or damages of not less than
$100 and not more than $1,000; or
(B) in the case of liability of a natural person for
obtaining a consumer report under false pretenses or
knowingly without a permissible purpose, actual damages
sustained by the consumer as a result of the failure or
$1,000, whichever is greater;
(2) such amount of punitive damages as the court may
allow; and
(3) in the case of any successful action to enforce
any liability under this section, the costs of the
action together with reasonable attorney's fees as
determined by the court.
(b) Civil Liability for Knowing Noncompliance.--Any person
who obtains a consumer report from a consumer reporting agency
under false pretenses or knowingly without a permissible
purpose shall be liable to the consumer reporting agency for
actual damages sustained by the consumer reporting agency or
$1,000, whichever is greater.
(c) Injunctive Relief.--
(1) In general.--In addition to any other remedy
under this section, a court may award injunctive relief
to require compliance with the requirements imposed
under this title with respect to any consumer.
(2) Attorney's fees.--In the event of any successful
action for injunctive relief under this subsection, a
court may award to the prevailing party reasonable
attorney's fees (as determined by the court) incurred
by the prevailing party during the action.
[(c)] (d) Attorney's Fees.--Upon a finding by the court that
an unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in bad
faith or for purposes of harassment, the court shall award to
the prevailing party attorney's fees reasonable in relation to
the work expended in responding to the pleading, motion, or
other paper.
[(d)] (e) Clarification of Willful Noncompliance.--For the
purposes of this section, any person who printed an expiration
date on any receipt provided to a consumer cardholder at a
point of sale or transaction between December 4, 2004, and the
date of the enactment of this subsection but otherwise complied
with the requirements of section 605(g) for such receipt shall
not be in willful noncompliance with section 605(g) by reason
of printing such expiration date on the receipt.
Sec. 617. Civil liability for negligent noncompliance
[(a) In General.--]
(a) Damages._
Any person who is negligent in failing to comply with any
requirement imposed under this title with respect to any
consumer is liable to that consumer in an amount equal to the
sum of--
(1) any actual damages sustained by the consumer as a
result of the failure; and
(2) in the case of any successful action to enforce
any liability under this section, the costs of the
action together with reasonable attorney's fees as
determined by the court.
(b) Injunctive Relief.--
(1) In general.--In addition to any other remedy
under this section, a court may award injunctive relief
to require compliance with the requirements imposed
under this title with respect to any consumer.
(2) Attorney's fees.--In the event of any successful
action for injunctive relief under this subsection, a
court may award to the prevailing party reasonable
attorney's fees (as determined by the court) incurred
by the prevailing party during the action.
[(b)] (c) Attorney's Fees.--On a finding by the court that an
unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in bad
faith or for purposes of harassment, the court shall award to
the prevailing party attorney's fees reasonable in relation to
the work expended in responding to the pleading, motion, or
other paper.
* * * * * * *
* * * * * * *
Sec. 621. Administrative enforcement
(a) Enforcement by Federal Trade Commission.--
(1) In general.--The Federal Trade Commission shall
be authorized to enforce compliance with the
requirements imposed by this title under the Federal
Trade Commission Act (15 U.S.C. 41 et seq.), with
respect to consumer reporting agencies and all other
persons subject thereto, except to the extent that
enforcement of the requirements imposed under this
title is specifically committed to some other
Government agency under any of subparagraphs (A)
through (G) of subsection (b)(1), and subject to
subtitle B of the Consumer Financial Protection Act of
2010, subsection (b). For the purpose of the exercise
by the Federal Trade Commission of its functions and
powers under the Federal Trade Commission Act, a
violation of any requirement or prohibition imposed
under this title shall constitute an unfair or
deceptive act or practice in commerce, in violation of
section 5(a) of the Federal Trade Commission Act (15
U.S.C. 45(a)), and shall be subject to enforcement by
the Federal Trade Commission under section 5(b) of that
Act with respect to any consumer reporting agency or
person that is subject to enforcement by the Federal
Trade Commission pursuant to this subsection,
irrespective of whether that person is engaged in
commerce or meets any other jurisdictional tests under
the Federal Trade Commission Act. The Federal Trade
Commission shall have such procedural, investigative,
and enforcement powers, including the power to issue
procedural rules in enforcing compliance with the
requirements imposed under this title and to require
the filing of reports, the production of documents, and
the appearance of witnesses, as though the applicable
terms and conditions of the Federal Trade Commission
Act were part of this title. Any person violating any
of the provisions of this title shall be subject to the
penalties and entitled to the privileges and immunities
provided in the Federal Trade Commission Act as though
the applicable terms and provisions of such Act are
part of this title.
(2) Penalties.--
(A) Knowing violations.--Except as otherwise
provided by subtitle B of the Consumer
Financial Protection Act of 2010, in the event
of a knowing violation, which constitutes a
pattern or practice of violations of this
title, the Federal Trade Commission may
commence a civil action to recover a civil
penalty in a district court of the United
States against any person that violates this
title. In such action, such person shall be
liable for a civil penalty of not more than
$2,500 per violation.
(B) Determining penalty amount.--In
determining the amount of a civil penalty under
subparagraph (A), the court shall take into
account the degree of culpability, any history
of such prior conduct, ability to pay, effect
on ability to continue to do business, and such
other matters as justice may require.
(C) Limitation.--Notwithstanding paragraph
(2), a court may not impose any civil penalty
on a person for a violation of section
623(a)(1), unless the person has been enjoined
from committing the violation, or ordered not
to commit the violation, in an action or
proceeding brought by or on behalf of the
Federal Trade Commission, and has violated the
injunction or order, and the court may not
impose any civil penalty for any violation
occurring before the date of the violation of
the injunction or order.
(b) Enforcement by Other Agencies.--
(1) In general.--Subject to subtitle B of the
Consumer Financial Protection Act of 2010, compliance
with the requirements imposed under this title with
respect to consumer reporting agencies, persons who use
consumer reports from such agencies, persons who
furnish information to such agencies, and users of
information that are subject to section 615(d) shall be
enforced under--
(A) section 8 of the Federal Deposit
Insurance Act (12 U.S.C. 1818), by the
appropriate Federal banking agency, as defined
in section 3(q) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q)), with respect
to--
(i) any national bank or State
savings association, and any Federal
branch or Federal agency of a foreign
bank;
(ii) any member bank of the Federal
Reserve System (other than a national
bank), a branch or agency of a foreign
bank (other than a Federal branch,
Federal agency, or insured State branch
of a foreign bank), a commercial
lending company owned or controlled by
a foreign bank, and any organization
operating under section 25 or 25A of
the Federal Reserve Act; and
(iii) any bank or Federal savings
association insured by the Federal
Deposit Insurance Corporation (other
than a member of the Federal Reserve
System) and any insured State branch of
a foreign bank;
(B) the Federal Credit Union Act (12 U.S.C.
1751 et seq.), by the Administrator of the
National Credit Union Administration with
respect to any Federal credit union;
(C) subtitle IV of title 49, United States
Code, by the Secretary of Transportation, with
respect to all carriers subject to the
jurisdiction of the Surface Transportation
Board;
(D) the Federal Aviation Act of 1958 (49
U.S.C. App. 1301 et seq.), by the Secretary of
Transportation, with respect to any air carrier
or foreign air carrier subject to that Act;
(E) the Packers and Stockyards Act, 1921 (7
U.S.C. 181 et seq.) (except as provided in
section 406 of that Act), by the Secretary of
Agriculture, with respect to any activities
subject to that Act;
(F) the Commodity Exchange Act, with respect
to a person subject to the jurisdiction of the
Commodity Futures Trading Commission;
(G) the Federal securities laws, and any
other laws that are subject to the jurisdiction
of the Securities and Exchange Commission, with
respect to a person that is subject to the
jurisdiction of the Securities and Exchange
Commission; and
(H) subtitle E of the Consumer Financial
Protection Act of 2010, by the Bureau, with
respect to any person subject to this title.
(2) Incorporated definitions.--The terms used in
paragraph (1) that are not defined in this title or
otherwise defined in section 3(s) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(s)) have the same
meanings as in section 1(b) of the International
Banking Act of 1978 (12 U.S.C. 3101).
(c) State Action for Violations.--
(1) Authority of states.--In addition to such other
remedies as are provided under State law, if the chief
law enforcement officer of a State, or an official or
agency designated by a State, has reason to believe
that any person has violated or is violating this
title, the State--
(A) may bring an action to enjoin such
violation in any appropriate United States
district court or in any other court of
competent jurisdiction;
(B) subject to paragraph (5), may bring an
action on behalf of the residents of the State
to recover--
(i) damages for which the person is
liable to such residents under sections
616 and 617 as a result of the
violation;
(ii) in the case of a violation
described in any of paragraphs (1)
through (3) of section 623(c), damages
for which the person would, but for
section 623(c), be liable to such
residents as a result of the violation;
or
(iii) damages of not more than $1,000
for each willful or negligent
violation; and
(C) in the case of any successful action
under subparagraph (A) or (B), shall be awarded
the costs of the action and reasonable attorney
fees as determined by the court.
(2) Rights of federal regulators.--The State shall
serve prior written notice of any action under
paragraph (1) upon the Bureau and the Federal Trade
Commission or the appropriate Federal regulator
determined under subsection (b) and provide the Bureau
and the Federal Trade Commission or appropriate Federal
regulator with a copy of its complaint, except in any
case in which such prior notice is not feasible, in
which case the State shall serve such notice
immediately upon instituting such action. The Bureau
and the Federal Trade Commission or appropriate Federal
regulator shall have the right--
(A) to intervene in the action;
(B) upon so intervening, to be heard on all
matters arising therein;
(C) to remove the action to the appropriate
United States district court; and
(D) to file petitions for appeal.
(3) Investigatory powers.--For purposes of bringing
any action under this subsection, nothing in this
subsection shall prevent the chief law enforcement
officer, or an official or agency designated by a
State, from exercising the powers conferred on the
chief law enforcement officer or such official by the
laws of such State to conduct investigations or to
administer oaths or affirmations or to compel the
attendance of witnesses or the production of
documentary and other evidence.
(4) Limitation on state action while federal action
pending.--If the Bureau, the Federal Trade Commission,
or the appropriate Federal regulator has instituted a
civil action or an administrative action under section
8 of the Federal Deposit Insurance Act for a violation
of this title, no State may, during the pendency of
such action, bring an action under this section against
any defendant named in the complaint of the Bureau, the
Federal Trade Commission, or the appropriate Federal
regulator for any violation of this title that is
alleged in that complaint.
(5) Limitations on state actions for certain
violations.--
(A) Violation of injunction required.--A
State may not bring an action against a person
under paragraph (1)(B) for a violation
described in any of paragraphs (1) through (3)
of section 623(c), unless--
(i) the person has been enjoined from
committing the violation, in an action
brought by the State under paragraph
(1)(A); and
(ii) the person has violated the
injunction.
(B) Limitation on damages recoverable.--In an
action against a person under paragraph (1)(B)
for a violation described in any of paragraphs
(1) through (3) of section 623(c), a State may
not recover any damages incurred before the
date of the violation of an injunction on which
the action is based.
(d) For the purpose of the exercise by any agency referred to
in subsection (b) of its powers under any Act referred to in
that subsection, a violation of any requirement imposed under
this title shall be deemed to be a violation of a requirement
imposed under that Act. In addition to its powers under any
provision of law specifically referred to in subsection (b),
each of the agencies referred to in that subsection may
exercise, for the purpose of enforcing compliance with any
requirement imposed under this title any other authority
conferred on it by law.
(e) Regulatory Authority.--
(1) In general.--The Bureau shall prescribe such
regulations as are necessary to carry out the purposes
of this title, except with respect to sections 615(e)
and 628. The Bureau may prescribe regulations as may be
necessary or appropriate to administer and carry out
the purposes and objectives of this title, and to
prevent evasions thereof or to facilitate compliance
therewith. Except as provided in section 1029(a) of the
Consumer Financial Protection Act of 2010, the
regulations prescribed by the Bureau under this title
shall apply to any person that is subject to this
title, notwithstanding the enforcement authorities
granted to other agencies under this section.
(2) Deference.--Notwithstanding any power granted to
any Federal agency under this title, the deference that
a court affords to a Federal agency with respect to a
determination made by such agency relating to the
meaning or interpretation of any provision of this
title that is subject to the jurisdiction of such
agency shall be applied as if that agency were the only
agency authorized to apply, enforce, interpret, or
administer the provisions of this title The regulations
prescribed by the Bureau under this title shall apply
to any person that is subject to this title,
notwithstanding the enforcement authorities granted to
other agencies under this section.
(f) Coordination of Consumer Complaint Investigations.--
(1) In general.--Each consumer reporting agency
described in section 603(p) shall develop and maintain
procedures for the referral to each other such agency
of any consumer complaint received by the agency
alleging identity theft, or requesting a fraud alert
under section 605A or a block under section 605B.
(2) Model form and procedure for reporting identity
theft.--The Commission, in consultation with the
Federal Trade Commission, 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 Bureau on consumer
complaints received by the agency on identity theft or
fraud alerts.
(g) Bureau Regulation of Coding of Trade Names.--If the
Bureau determines that a person described in paragraph (9) of
section 623(a) has not met the requirements of such paragraph,
the Bureau shall take action to ensure the person's compliance
with such paragraph, which may include issuing model guidance
or prescribing reasonable policies and procedures, as necessary
to ensure that such person complies with such paragraph.
(h) Consumer Reporting Agency Registry.--
(1) Establishment of registry.--Not later than 180
days after the date of enactment of this subsection,
the Bureau shall establish a publicly available
registry of consumer reporting agencies that includes--
(A) each consumer reporting agency that
compiles and maintains files on consumers on a
nationwide basis;
(B) each nationwide specialty consumer
reporting agency;
(C) all other consumer reporting agencies
that are not included under section 603(p) or
603(x); and
(D) links to any relevant websites of a
consumer reporting agency described under
subparagraphs (A) through (C).
(2) Registration requirement.--The Bureau shall
establish a deadline, which shall be not later than 270
days after the date of the enactment of this
subsection, by which each consumer reporting agency
described in paragraph (1) shall be required to
register in the registry established under such
paragraph.
* * * * * * *
SEC. 623. RESPONSIBILITIES OF FURNISHERS OF INFORMATION TO CONSUMER
REPORTING AGENCIES.
(a) Duty of Furnishers of Information To Provide Accurate
Information.--
(1) Prohibition.--
(A) Reporting information with actual
knowledge of errors.--A person shall not
furnish any information relating to a consumer
to any consumer reporting agency if the person
knows or has reasonable cause to believe that
the information is inaccurate.
(B) Reporting information after notice and
confirmation of errors.--A person shall not
furnish information relating to a consumer to
any consumer reporting agency if--
(i) the person has been notified by
the consumer, at the address specified
by the person for such notices, that
specific information is inaccurate; and
(ii) the information is, in fact,
inaccurate.
(C) No address requirement.--A person who
clearly and conspicuously specifies to the
consumer an address for notices referred to in
subparagraph (B) shall not be subject to
subparagraph (A); however, nothing in
subparagraph (B) shall require a person to
specify such an address.
(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.
(E) Rehabilitation of private education
loans.--
(i) In general.--Notwithstanding any
other provision of this section, a
consumer may request a financial
institution to remove from a consumer
report a reported default regarding a
private education loan, and such
information shall not be considered
inaccurate, if--
(I) the financial institution
chooses to offer a loan
rehabilitation program which
includes, without limitation, a
requirement of the consumer to
make consecutive on-time
monthly payments in a number
that demonstrates, in the
assessment of the financial
institution offering the loan
rehabilitation program, a
renewed ability and willingness
to repay the loan; and
(II) the requirements of the
loan rehabilitation program
described in subclause (I) are
successfully met.
(ii) Banking agencies.--
(I) In general.--If a
financial institution is
supervised by a Federal banking
agency, the financial
institution shall seek written
approval concerning the terms
and conditions of the loan
rehabilitation program
described in clause (i) from
the appropriate Federal banking
agency.
(II) Feedback.--An
appropriate Federal banking
agency shall provide feedback
to a financial institution
within 120 days of a request
for approval under subclause
(I).
(iii) Limitation.--
(I) In general.--A consumer
may obtain the benefits
available under this subsection
with respect to rehabilitating
a loan only 1 time per loan.
(II) Rule of construction.--
Nothing in this subparagraph
may be construed to require a
financial institution to offer
a loan rehabilitation program
or to remove any reported
default from a consumer report
as a consideration of a loan
rehabilitation program, except
as described in clause (i).
(iv) Definitions.--For purposes of
this subparagraph--
(I) the term ``appropriate
Federal banking agency'' has
the meaning given the term in
section 3 of the Federal
Deposit Insurance Act (12
U.S.C. 1813); and
(II) the term ``private
education loan'' has the
meaning given the term in
section 140(a) of the Truth in
Lending Act (15 U.S.C.
1650(a)).
(2) Duty to correct and update information.--A person
who--
(A) regularly and in the ordinary course of
business furnishes information to one or more
consumer reporting agencies about the person's
transactions or experiences with any consumer;
and
(B) has furnished to a consumer reporting
agency information that the person determines
is not complete or accurate,
shall promptly notify the consumer reporting agency of
that determination and provide to the agency any
corrections to that information, or any additional
information, that is necessary to make the information
provided by the person to the agency complete and
accurate, and shall not thereafter furnish to the
agency any of the information that remains not complete
or accurate.
(3) Duty to provide notice of dispute.--If the
completeness or accuracy of any information furnished
by any person to any consumer reporting agency is
disputed to such person by a consumer, the person may
not furnish the information to any consumer reporting
agency without notice that such information is disputed
by the consumer.
(4) Duty to provide notice of closed accounts.--A
person who regularly and in the ordinary course of
business furnishes information to a consumer reporting
agency regarding a consumer who has a credit account
with that person shall notify the agency of the
voluntary closure of the account by the consumer, in
information regularly furnished for the period in which
the account is closed.
(5) Duty to provide notice of delinquency of
accounts.--(A) In general.--A person who furnishes
information to a consumer reporting agency regarding a
delinquent account being placed for collection, charged
to profit or loss, or subjected to any similar action
shall, not later than 90 days after furnishing the
information, notify the agency of the date of
delinquency on the account, which shall be the month
and year of the commencement of the delinquency on the
account that immediately preceded the action.
(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.
(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.
(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.] without
providing additional notice to the
consumer, unless another person
acquires the right to repayment
connected to the additional negative
information. The acquiring person shall
be subject to the requirements of this
paragraph and shall be required to send
consumers the written notices described
in this paragraph, if applicable.
(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 bureau.--The Bureau shall
prescribe a brief model disclosure that
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 may be
construed to require a financial
institution to use any such model form
prescribed by the Bureau.
(iii) Compliance using model.--A
financial institution shall be deemed
to be in compliance with subparagraph
(A) if the financial institution uses
any model form prescribed by the Bureau
under this subparagraph, 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.
(8) Ability of consumer to dispute information
directly with furnisher.--
(A) In general.--The Bureau shall, in
consultation with the Federal Trade Commission,
the Federal banking agencies, and the National
Credit Union Administration, 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 and consider 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, and does not
include any new or additional
information that would be
relevant to a reinvestigation
(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.
(iv) New or additional information.--
For purposes of clause (i)(II), the
term ``new or additional
information''--
(I) means information of a
type designated by the Bureau;
and
(II) does not include
information previously provided
to the person.
(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).
(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) Duties of Furnishers of Information Upon Notice of
Dispute.--
(1) In general.--After receiving notice pursuant to
section 611(a)(2) of a dispute with regard to the
completeness or accuracy of any information provided by
a person to a consumer reporting agency, the person
shall--
(A) conduct an investigation with respect to
the disputed information;
(B) review and consider all relevant
information provided by the consumer reporting
agency pursuant to section 611(a)(2);
(C) report the results of the investigation
to the consumer reporting agency;
(D) if the investigation finds that the
information is incomplete or inaccurate, report
those results to all other consumer reporting
agencies to which the person furnished the
information and that compile and maintain files
on consumers on a nationwide basis; 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.
(2) Deadline.--A person shall complete all
investigations, reviews, and reports required under
paragraph (1) regarding information provided by the
person to a consumer reporting agency, before the
expiration of the period under section 611(a)(1) within
which the consumer reporting agency is required to
complete actions required by that section regarding
that information.
(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.
(e) Accuracy Guidelines and Regulations Required.--
(1) Guidelines.--The Bureau shall, with respect to
persons or entities that are subject to the enforcement
authority of the Bureau under section 621--
(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) Criteria.--In developing the guidelines required
by paragraph (1)(A), the Bureau 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 ensure 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.
* * * * * * *
----------
DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
* * * * * * *
TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION
* * * * * * *
Subtitle B--General Powers of the Bureau
* * * * * * *
SEC. 1024. SUPERVISION OF NONDEPOSITORY COVERED PERSONS.
(a) Scope of Coverage.--
(1) Applicability.--Notwithstanding any other
provision of this title, and except as provided in
paragraph (3), this section shall apply to any covered
person who--
(A) offers or provides origination,
brokerage, or servicing of loans secured by
real estate for use by consumers primarily for
personal, family, or household purposes, or
loan modification or foreclosure relief
services in connection with such loans;
(B) is a larger participant of a market for
other consumer financial products or services,
as defined by rule in accordance with paragraph
(2);
(C) the Bureau has reasonable cause to
determine, by order, after notice to the
covered person and a reasonable opportunity for
such covered person to respond, based on
complaints collected through the system under
section 1013(b)(3) or information from other
sources, that such covered person is engaging,
or has engaged, in conduct that poses risks to
consumers with regard to the offering or
provision of consumer financial products or
services;
(D) offers or provides to a consumer any
private education loan, as defined in section
140 of the Truth in Lending Act (15 U.S.C.
1650), notwithstanding section 1027(a)(2)(A)
and subject to section 1027(a)(2)(C); [or]
(E) offers or provides to a consumer a payday
loan[.]; or
(F) is a consumer reporting agency described
under section 603(p) of the Fair Credit
Reporting Act.
(2) Rulemaking to define covered persons subject to
this section.--The Bureau shall consult with the
Federal Trade Commission prior to issuing a rule, in
accordance with paragraph (1)(B), to define covered
persons subject to this section. The Bureau shall issue
its initial rule not later than 1 year after the
designated transfer date.
(3) Rules of construction.--
(A) Certain persons excluded.--This section
shall not apply to persons described in section
1025(a) or 1026(a).
(B) Activity levels.--For purposes of
computing activity levels under paragraph (1)
or rules issued thereunder, activities of
affiliated companies (other than insured
depository institutions or insured credit
unions) shall be aggregated.
(b) Supervision.--
(1) In general.--The Bureau shall require reports and
conduct examinations on a periodic basis of persons
described in subsection (a)(1) for purposes of--
(A) assessing compliance with the
requirements of Federal consumer financial law;
(B) obtaining information about the
activities and compliance systems or procedures
of such person; and
(C) detecting and assessing risks to
consumers and to markets for consumer financial
products and services.
(2) Risk-based supervision program.--The Bureau shall
exercise its authority under paragraph (1) in a manner
designed to ensure that such exercise, with respect to
persons described in subsection (a)(1), is based on the
assessment by the Bureau of the risks posed to
consumers in the relevant product markets and
geographic markets, and taking into consideration, as
applicable--
(A) the asset size of the covered person;
(B) the volume of transactions involving
consumer financial products or services in
which the covered person engages;
(C) the risks to consumers created by the
provision of such consumer financial products
or services;
(D) the extent to which such institutions are
subject to oversight by State authorities for
consumer protection; and
(E) any other factors that the Bureau
determines to be relevant to a class of covered
persons.
(3) Coordination.--To minimize regulatory burden, the
Bureau shall coordinate its supervisory activities with
the supervisory activities conducted by prudential
regulators, the State bank regulatory authorities, and
the State agencies that licence, supervise, or examine
the offering of consumer financial products or
services, including establishing their respective
schedules for examining persons described in subsection
(a)(1) and requirements regarding reports to be
submitted by such persons. The sharing of information
with such regulators, authorities, and agencies shall
not be construed as waiving, destroying, or otherwise
affecting any privilege or confidentiality such person
may claim with respect to such information under
Federal or State law as to any person or entity other
than such Bureau, agency, supervisor, or authority.
(4) Use of existing reports.--The Bureau shall, to
the fullest extent possible, use--
(A) reports pertaining to persons described
in subsection (a)(1) that have been provided or
required to have been provided to a Federal or
State agency; and
(B) information that has been reported
publicly.
(5) Preservation of authority.--Nothing in this title
may be construed as limiting the authority of the
Director to require reports from persons described in
subsection (a)(1), as permitted under paragraph (1),
regarding information owned or under the control of
such person, regardless of whether such information is
maintained, stored, or processed by another person.
(6) Reports of tax law noncompliance.--The Bureau
shall provide the Commissioner of Internal Revenue with
any report of examination or related information
identifying possible tax law noncompliance.
(7) Registration, recordkeeping and other
requirements for certain persons.--
(A) In general.--The Bureau shall prescribe
rules to facilitate supervision of persons
described in subsection (a)(1) and assessment
and detection of risks to consumers.
(B) Recordkeeping.--The Bureau may require a
person described in subsection (a)(1), to
generate, provide, or retain records for the
purposes of facilitating supervision of such
persons and assessing and detecting risks to
consumers.
(C) Requirements concerning obligations.--The
Bureau may prescribe rules regarding a person
described in subsection (a)(1), to ensure that
such persons are legitimate entities and are
able to perform their obligations to consumers.
Such requirements may include background checks
for principals, officers, directors, or key
personnel and bonding or other appropriate
financial requirements.
(D) Consultation with state agencies.--In
developing and implementing requirements under
this paragraph, the Bureau shall consult with
State agencies regarding requirements or
systems (including coordinated or combined
systems for registration), where appropriate.
(c) Enforcement Authority.--
(1) The bureau to have enforcement authority.--Except
as provided in paragraph (3) and section 1061, with
respect to any person described in subsection (a)(1),
to the extent that Federal law authorizes the Bureau
and another Federal agency to enforce Federal consumer
financial law, the Bureau shall have exclusive
authority to enforce that Federal consumer financial
law.
(2) Referral.--Any Federal agency authorized to
enforce a Federal consumer financial law described in
paragraph (1) may recommend in writing to the Bureau
that the Bureau initiate an enforcement proceeding, as
the Bureau is authorized by that Federal law or by this
title.
(3) Coordination with the federal trade commission.--
(A) In general.--The Bureau and the Federal
Trade Commission shall negotiate an agreement
for coordinating with respect to enforcement
actions by each agency regarding the offering
or provision of consumer financial products or
services by any covered person that is
described in subsection (a)(1), or service
providers thereto. The agreement shall include
procedures for notice to the other agency,
where feasible, prior to initiating a civil
action to enforce any Federal law regarding the
offering or provision of consumer financial
products or services.
(B) Civil actions.--Whenever a civil action
has been filed by, or on behalf of, the Bureau
or the Federal Trade Commission for any
violation of any provision of Federal law
described in subparagraph (A), or any
regulation prescribed under such provision of
law--
(i) the other agency may not, during
the pendency of that action, institute
a civil action under such provision of
law against any defendant named in the
complaint in such pending action for
any violation alleged in the complaint;
and
(ii) the Bureau or the Federal Trade
Commission may intervene as a party in
any such action brought by the other
agency, and, upon intervening--
(I) be heard on all matters
arising in such enforcement
action; and
(II) file petitions for
appeal in such actions.
(C) Agreement terms.--The terms of any
agreement negotiated under subparagraph (A) may
modify or supersede the provisions of
subparagraph (B).
(D) Deadline.--The agencies shall reach the
agreement required under subparagraph (A) not
later than 6 months after the designated
transfer date.
(d) Exclusive Rulemaking and Examination Authority.--
Notwithstanding any other provision of Federal law and except
as provided in section 1061, to the extent that Federal law
authorizes the Bureau and another Federal agency to issue
regulations or guidance, conduct examinations, or require
reports from a person described in subsection (a)(1) under such
law for purposes of assuring compliance with Federal consumer
financial law and any regulations thereunder, the Bureau shall
have the exclusive authority to prescribe rules, issue
guidance, conduct examinations, require reports, or issue
exemptions with regard to a person described in subsection
(a)(1), subject to those provisions of law.
(e) Service Providers.--A service provider to a person
described in subsection (a)(1) shall be subject to the
authority of the Bureau under this section, to the same extent
as if such service provider were engaged in a service
relationship with a bank, and the Bureau were an appropriate
Federal banking agency under section 7(c) of the Bank Service
Company Act (12 U.S.C. 1867(c)). In conducting any examination
or requiring any report from a service provider subject to this
subsection, the Bureau shall coordinate with the appropriate
prudential regulator, as applicable.
(f) Preservation of Farm Credit Administration Authority.--No
provision of this title may be construed as modifying,
limiting, or otherwise affecting the authority of the Farm
Credit Administration.
* * * * * * *
----------
GRAMM-LEACH-BLILEY ACT
* * * * * * *
TITLE V--PRIVACY
Subtitle A--Disclosure of Nonpublic Personal Information
SEC. 501. PROTECTION OF NONPUBLIC PERSONAL INFORMATION.
(a) Privacy Obligation Policy.--It is the policy of the
Congress that each financial institution has an affirmative and
continuing obligation to respect the privacy of its customers
and to protect the security and confidentiality of those
customers' nonpublic personal information.
(b) Financial Institutions Safeguards.--In furtherance of the
policy in subsection (a), each agency or authority described in
section 505(a), other than the Bureau of Consumer Financial
Protection, shall establish appropriate standards for the
financial institutions subject to their jurisdiction relating
to administrative, technical, and physical safeguards--
(1) to insure the security and confidentiality of
customer records and information;
(2) to protect against any anticipated threats or
hazards to the security or integrity of such records;
and
(3) to protect against unauthorized access to or use
of such records or information which could result in
substantial harm or inconvenience to any customer.
(c) Consumer Reporting Agency Safeguards.--The Bureau of
Consumer Financial Protection shall establish, by rule,
appropriate standards for consumer reporting agencies described
under section 603(p) of the Fair Credit Reporting Act relating
to administrative, technical, and physical safeguards to
protect records and information as described in paragraphs (1)
through (3) of subsection (b).
* * * * * * *
SEC. 504. RULEMAKING.
(a) Regulatory Authority.--
(1) Rulemaking.--
(A) In general.--Except as provided in
subparagraph (C), the Bureau of Consumer
Financial Protection and the Securities and
Exchange Commission shall have authority to
prescribe such regulations as may be necessary
to carry out the purposes of this subtitle with
respect to financial institutions and other
persons subject to their respective
jurisdiction under section 505 (and
notwithstanding subtitle B of the Consumer
Financial Protection Act of 2010)[, except that
the Bureau of Consumer Financial Protection
shall not have authority to prescribe
regulations with respect to the standards under
section 501].
(B) CFTC.--The Commodity Futures Trading
Commission shall have authority to prescribe
such regulations as may be necessary to carry
out the purposes of this subtitle with respect
to financial institutions and other persons
subject to the jurisdiction of the Commodity
Futures Trading Commission under section 5g of
the Commodity Exchange Act.
(C) Federal trade commission authority.--
Notwithstanding the authority of the Bureau of
Consumer Financial Protection under
subparagraph (A), the Federal Trade Commission
shall have authority to prescribe such
regulations as may be necessary to carry out
the purposes of this subtitle with respect to
any financial institution that is a person
described in section 1029(a) of the Consumer
Financial Protection Act of 2010.
(D) Rule of construction.--Nothing in this
paragraph shall be construed to alter, affect,
or otherwise limit the authority of a State
insurance authority to adopt regulations to
carry out this subtitle.
(2) Coordination, consistency, and comparability.--
Each of the agencies authorized under paragraph (1) to
prescribe regulations shall consult and coordinate with
the other such agencies and, as appropriate, and with
representatives of State insurance authorities
designated by the National Association of Insurance
Commissioners, for the purpose of assuring, to the
extent possible, that the regulations prescribed by
each such agency are consistent and comparable with the
regulations prescribed by the other such agencies.
(3) Procedures and deadline.--Such regulations shall
be prescribed in accordance with applicable
requirements of title 5, United States Code.
(b) Authority To Grant Exceptions.--The regulations
prescribed under subsection (a) may include such additional
exceptions to subsections (a) through (d) of section 502 as are
deemed consistent with the purposes of this subtitle.
SEC. 505. ENFORCEMENT.
(a) In General.--Subject to subtitle B of the Consumer
Financial Protection Act of 2010, this subtitle and the
regulations prescribed thereunder shall be enforced by the
Bureau of Consumer Financial Protection, the Federal functional
regulators, the State insurance authorities, and the Federal
Trade Commission with respect to financial institutions and
other persons subject to their jurisdiction under applicable
law, as follows:
(1) Under section 8 of the Federal Deposit Insurance
Act, by the appropriate Federal banking agency, as
defined in section 3(q) of the Federal Deposit
Insurance Act, in the case of--
(A) national banks, Federal branches and
Federal agencies of foreign banks, and any
subsidiaries of such entities (except brokers,
dealers, persons providing insurance,
investment companies, and investment advisers);
(B) member banks of the Federal Reserve
System (other than national banks), branches
and agencies of foreign banks (other than
Federal branches, Federal agencies, and insured
State branches of foreign banks), commercial
lending companies owned or controlled by
foreign banks, organizations operating under
section 25 or 25A of the Federal Reserve Act,
and bank holding companies and their nonbank
subsidiaries or affiliates (except brokers,
dealers, persons providing insurance,
investment companies, and investment advisers);
(C) banks insured by the Federal Deposit
Insurance Corporation (other than members of
the Federal Reserve System), insured State
branches of foreign banks, and any subsidiaries
of such entities (except brokers, dealers,
persons providing insurance, investment
companies, and investment advisers); and
(D) savings associations the deposits of
which are insured by the Federal Deposit
Insurance Corporation, and any subsidiaries of
such savings associations (except brokers,
dealers, persons providing insurance,
investment companies, and investment advisers).
(2) Under the Federal Credit Union Act, by the Board
of the National Credit Union Administration with
respect to any federally insured credit union, and any
subsidiaries of such an entity.
(3) Under the Securities Exchange Act of 1934, by the
Securities and Exchange Commission with respect to any
broker or dealer.
(4) Under the Investment Company Act of 1940, by the
Securities and Exchange Commission with respect to
investment companies.
(5) Under the Investment Advisers Act of 1940, by the
Securities and Exchange Commission with respect to
investment advisers registered with the Commission
under such Act.
(6) Under State insurance law, in the case of any
person engaged in providing insurance, by the
applicable State insurance authority of the State in
which the person is domiciled, subject to section 104
of this Act.
(7) Under the Federal Trade Commission Act, by the
Federal Trade Commission for any other financial
institution or other person that is not subject to the
jurisdiction of any agency or authority under
paragraphs (1) through (6) of this subsection.
(8) Under subtitle E of the Consumer Financial
Protection Act of 2010, by the Bureau of Consumer
Financial Protection, in the case of any financial
institution and other covered person or service
provider that is subject to the jurisdiction of the
Bureau and any person subject to this subtitle, but not
with respect to the standards under section 501, other
than under subsection (c) of section 501
(b) Enforcement of Section 501.--
(1) In general.--Except as provided in paragraph (2),
the agencies and authorities described in subsection
(a), other than the Bureau of Consumer Financial
Protection, shall implement the standards prescribed
under section 501(b) in the same manner, to the extent
practicable, as standards prescribed pursuant to
section 39(a) of the Federal Deposit Insurance Act are
implemented pursuant to such section.
(2) Exception.--The agencies and authorities
described in paragraphs (3), (4), (5), (6), and (7) of
subsection (a) shall implement the standards prescribed
under section 501(b) by rule with respect to the
financial institutions and other persons subject to
their respective jurisdictions under subsection (a).
(c) Absence of State Action.--If a State insurance authority
fails to adopt regulations to carry out this subtitle, such
State shall not be eligible to override, pursuant to section
47(g)(2)(B)(iii) of the Federal Deposit Insurance Act, the
insurance customer protection regulations prescribed by a
Federal banking agency under section 47(a) of such Act.
(d) Definitions.--The terms used in subsection (a)(1) that
are not defined in this subtitle or otherwise defined in
section 3(s) of the Federal Deposit Insurance Act shall have
the same meaning as given in section 1(b) of the International
Banking Act of 1978.
* * * * * * *
MINORITY VIEWS
American families should have the very best in modern
technology to protect their consumer data and personal
information. H.R. 5332 is a step backward. This bill is overly
prescriptive and has the potential to jeopardize a consumer's
personal information through the bill's reliance on Social
Security numbers (SSNs) and lack of strong cybersecurity
protections.
Committee Republicans have consistently expressed concern
that the private sector and government rely on SSNs for
identity verification. H.R. 5332 expands reliance on SSNs,
which are no longer wholly confidential.
H.R. 5332 requires credit reporting agencies
to match all nine digits of a consumer's SSN before
including any information in a consumer credit report--
prohibiting valuable and otherwise accurate information
from being included in a consumer's credit file and
creating additional pressure to expand the collection
of consumer SSNs.
The bill also continues the Democrats' goal of expanding
the Consumer Financial Protection Bureau's (CFPB) unchecked
power.
This bill directs the CFPB to establish
``administrative, technical, and physical safeguards,''
for all credit reporting agencies. This responsibility
is currently directed to prudential regulators under
the Gramm-Leach-Bliley Act.\1\
---------------------------------------------------------------------------
\1\https://docs.house.gov/meetings/BA/BA00/20191210/110323/BILLS-
116-HR_-G000583-Amdt-6.pdf.
---------------------------------------------------------------------------
The Democrats would create a new ombudsman
within the CFPB allowing that person to make
recommendations directly to the Bureau's Office of
Enforcement and Office of Supervision for enforcement
action.
During Committee consideration of the bill, Ranking Member
Patrick McHenry (R-NC) offered an amendment which would have
subjected the nationwide credit reporting agencies to
cybersecurity supervision and examination by the CFPB.
The amendment would have prohibited the use
of SSNs in credit reports or as a method of verifying a
consumer's identity.
Democrats rejected this amendment on a
party-line vote of 24-31.
H.R. 5332 is another attempt by Committee Democrats to
expand the power of an unaccountable unconstitutional agency.
Moreover, the bill jeopardizes consumers' personal information
by expanding reliance on SSNs. Finally, the bill does nothing
to address the longstanding cybersecurity concerns with credit
reporting.
For these reasons, Committee Republicans oppose H.R. 5332.
Roger Williams.
Barry Loudermilk.
Trey Hollingsworth.
Lance Gooden.
David Kustoff.
William R. Timmons, IV.
Scott R. Tipton.
Warren Davidson.
Denver Riggleman.
Andy Barr.
Ann Wagner.
Blaine Luetkemeyer.
Alexander X. Mooney.
John W. Rose.
Steve Stivers.
J. French Hill.
Van Taylor.
Tom Emmer.
Ted Budd.
Bryan Steil.
Anthony Gonzalez.
Frank D. Lucas.
Lee M. Zeldin.
Bill Huizenga.
Bill Posey.
Patrick T. McHenry.
[all]
