[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3621 Received in Senate (RDS)]
<DOC>
116th CONGRESS
2d Session
H. R. 3621
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 30, 2020
Received
_______________________________________________________________________
AN ACT
To amend the Fair Credit Reporting Act to remove adverse information
for certain defaulted or delinquent private education loan borrowers
who demonstrate a history of loan repayment, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Comprehensive Credit Reporting
Enhancement, Disclosure, Innovation, and Transparency Act of 2020'' or
the ``Comprehensive CREDIT Act of 2020''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings.
Sec. 4. Effective date.
Sec. 5. Discretionary surplus fund.
TITLE I--IMPROVEMENTS TO THE DISPUTE PROCESS
Sec. 101. Dispute procedures and disclosures relating to
reinvestigations.
Sec. 102. Consumer awareness of dispute rights.
Sec. 103. Maintenance of records by furnishers.
Sec. 104. Duties of furnishers relating to dispute procedures, notices,
and disclosures.
Sec. 105. Right to appeal disputes relating to reinvestigations and
investigations.
Sec. 106. Revised consumer reports.
Sec. 107. Indication of dispute by consumers and use of disputed
information.
Sec. 108. Accuracy and completeness report duties for consumer
reporting agencies and furnishers.
Sec. 109. Inclusion of public record data sources in consumer reports.
Sec. 110. Injunctive relief for victims.
TITLE II--FREE CREDIT SCORES FOR CONSUMERS
Sec. 201. Definitions.
Sec. 202. Consumer information on calculation of scores.
Sec. 203. Disclosures relating to credit scores and educational credit
scores.
Sec. 204. Free credit score disclosures and consumer reports.
Sec. 205. Provision of consumer reports and credit scores by private
educational lenders.
Sec. 206. Provision of consumer reports and credit scores by motor
vehicle lenders or indirect auto lenders.
Sec. 207. Provision of consumer reports and credit scores by
residential mortgage lenders.
TITLE III--STUDENT BORROWER CREDIT IMPROVEMENT ACT
Sec. 301. Removal of adverse information for certain private education
loan borrowers.
Sec. 302. Private education loan definitions.
TITLE IV--CREDIT RESTORATION FOR VICTIMS OF PREDATORY ACTIVITIES AND
UNFAIR CONSUMER REPORTING PRACTICES
Sec. 401. Adverse credit information.
Sec. 402. Expedited removal of fully paid or settled debt from consumer
reports.
Sec. 403. Medical debt collections.
Sec. 404. Credit restoration for victims of predatory mortgage lending
and servicing.
Sec. 405. Credit restoration for certain private education loans
borrowers.
Sec. 406. Financial abuse prevention.
Sec. 407. Prohibition of certain factors related to Federal credit
restoration or rehabilitation.
TITLE V--CLARITY IN CREDIT SCORE FORMATION
Sec. 501. Consumer Bureau study and report to Congress on the impact of
non-traditional data.
Sec. 502. Consumer Bureau oversight of credit scoring models.
Sec. 503. Review of changes to credit scoring models.
TITLE VI--RESTRICTIONS ON CREDIT CHECKS FOR EMPLOYMENT DECISIONS
Sec. 601. Prohibition on the use of credit information for most
employment decisions.
TITLE VII--PROHIBITION ON MISLEADING AND UNFAIR CONSUMER REPORTING
PRACTICES
Sec. 701. Prohibition on automatic renewals for promotional consumer
reporting and credit scoring products and
services.
Sec. 702. Prohibition on misleading and deceptive marketing related to
the provision of consumer reporting and
credit scoring products and services.
Sec. 703. Prohibition on excessive direct-to-consumer sales.
Sec. 704. Fair access to consumer reporting and credit scoring
disclosures for nonnative English speakers
and the visually and hearing impaired.
Sec. 705. Comparison shopping for loans without harm to credit
standing.
Sec. 706. Nationwide consumer reporting agencies registry.
Sec. 707. Protection for certain consumers affected by a shutdown.
TITLE VIII--PROTECTIONS AGAINST IDENTITY THEFT, FRAUD, OR A RELATED
CRIME
Sec. 801. Identity theft report definition.
Sec. 802. Amendment to protection for files and credit records of
protected consumers.
Sec. 803. Enhancement to fraud alert protections.
Sec. 804. Amendment to security freezes for consumer reports.
Sec. 805. Clarification of information to be included with agency
disclosures.
Sec. 806. Provides access to fraud records for victims.
Sec. 807. Required Bureau to set procedures for reporting identity
theft, fraud, and other related crime.
Sec. 808. Establishes the right to free credit monitoring and identity
theft protection services for certain
consumers.
Sec. 809. Ensures removal of inquiries resulting from identity theft,
fraud, or other related crime from consumer
reports.
TITLE IX--MISCELLANEOUS
Sec. 901. Definitions.
Sec. 902. Technical correction related to risk-based pricing notices.
Sec. 903. FCRA findings and purpose; voids certain contracts not in the
public interest.
Sec. 904. GAO study on the use of credit in housing determinations.
Sec. 905. GAO study on the effects of credit scores impacted by a
student borrower's defaulted or delinquent
private education loan.
Sec. 906. GAO study on consumer reporting agency compliance with
consent orders.
Sec. 907. Protections for active duty uniformed consumer.
Sec. 908. Positive credit reporting permitted.
Sec. 909. Sense of Congress.
Sec. 910. Cybersecurity supervision and examination of large consumer
reporting agencies.
SEC. 3. FINDINGS.
Congress finds the following:
(1) General findings on credit reporting.--
(A) Consumer reporting agencies (``CRAs'') are
companies that collect, compile, and provide
information about consumers in the form of consumer
reports for certain permissible statutory purposes
under the Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.) (``FCRA''). The three largest CRAs in this
country are Equifax, TransUnion, and Experian. These
CRAs are referred to as nationwide CRAs and the reports
that they prepare are commonly referred to as credit
reports. Furnishers, such as creditors, lenders, and
debt collection agencies, voluntarily submit
information to CRAs about their accounts such as the
total amount for each loan or credit limit for each
credit card and the consumer's payment history on these
products. Reports also include identifying information
about a consumer, such as their birthdate, previous
mailing addresses, and current and previous employers.
(B) In a December 2012 paper, ``Key Dimensions and
Processes in the U.S. Credit Reporting System: A review
for how the nation's largest credit bureaus manage
consumer data'', the Bureau of Consumer Financial
Protection (``Consumer Bureau'') noted that the three
nationwide CRAs maintain credit files on approximately
200 million adults and receive information from about
10,000 furnishers. On a monthly basis, these furnishers
provide information on over 1.3 billion consumer credit
accounts or other trade lines.
(C) The 10 largest institutions furnishing credit
information to each of the nationwide CRAs account for
more than half of all accounts reflected in consumers'
credit files.
(D) Consumer reports play an increasingly important
role in the lives of American consumers. Most
creditors, for example, review these reports to make
decisions about whether to extend credit to consumers
and what terms and conditions to offer them. As such,
information contained in these reports affects whether
a person is able to get a private education loan to pay
for college costs, to secure a mortgage loan to buy a
home, or to obtain a credit card, as well as the terms
and conditions under which consumer credit products or
services are offered to them.
(E) Credit reports are also increasingly used for
many noncredit decisions, including by landlords to
determine whether to rent an apartment to a prospective
tenant and by employers to decide whether to hire
potential job applicants or to offer a promotion to
existing employees.
(F) CRAs have a statutory obligation to verify
independently the accuracy and completeness of
information included on the reports that they provide.
(G) The nationwide CRAs have failed to establish
and follow reasonable procedures, as required by
existing law, to establish the maximum level of
accuracy of information contained on consumer reports.
Given the repeated failures of these CRAs to comply
with accuracy requirements on their own, legislation is
intended to provide them with detailed guidance
improving the accuracy and completeness of information
contained in consumer reports, including procedures,
policies, and practices that these CRAs should already
be following to ensure full compliance with their
existing obligations.
(H) The presence of inaccurate or incomplete
information on these reports can result in substantial
financial and emotional harm to consumers. Credit
reporting errors can lead to the loss of a new
employment opportunity or a denial of a promotion in an
existing job, stop someone from being able to access
credit on favorable terms, prevent a person from
obtaining rental housing, or even trigger mental
distress.
(I) Current industry practices impose an unfair
burden of proof on consumers trying to fix errors on
their reports.
(J) Consumer reports containing inaccurate or
incomplete credit information also undermine the
ability of creditors and lenders to effectively and
accurately underwrite and price credit.
(K) Recognizing that credit reporting affects the
lives of almost all consumers in this country and that
the consequences of errors on a consumer report can be
catastrophic for a consumer, the Consumer Bureau began
accepting consumer complaints about credit reporting in
October 2012.
(L) As of early December 2019, the Consumer Bureau
has handled approximately 391,560 credit reporting
complaints about the top three CRAs, making credit
reporting consistently in the top third most-
complained-about subject matter on which the Consumer
Bureau accepts consumer complaints. Incorrect
information in reports and frustrations about
burdensome and time-consuming process to disputing
items is are consistently top reported concerns from
consumers.
(M) Other common types of credit reporting
complaints submitted to the Consumer Bureau related to
the improper use of a report, trouble obtaining a
report or credit score, CRAs' investigations, and
credit monitoring or identity protection.
(N) In the fall 2019 ``Supervisory Highlights'',
the Consumer Bureau noted that one or more of the
largest CRAs continue to struggle to adequately oversee
furnishers to ensure that they were adhering to the
CRA's vetting policies and to establish proper
procedures to verify public record information.
(O) According to the fall 2016 ``Supervisory
Highlights'', Consumer Bureau examiners determined that
one or more debt collectors never investigated indirect
disputes that lacked detail or were not accompanied by
attachments with relevant information from the
consumer. Examiners also found that notifications sent
to consumers about disputes considered frivolous failed
to identify for the consumers the type of material that
they could provide in order for the debt collector to
complete the investigation of the disputed item.
(P) A February 2014 Consumer Bureau report titled
``Credit Reporting Complaint Snapshot'' found that
consumers are confused about the extent to which the
nationwide CRAs are required to provide them with
validation and documentation of a debt that appears on
their credit report.
(Q) As evidence that the current system lacks
sufficient market incentives for CRAs to develop more
robust procedures to increase the accuracy and
completeness of information on credit reports,
litigation discovery documented by the National
Consumer Law Center (``NCLC''), as part of a February
2019 report titled ``Automated Injustice Redux: Ten
Years after a Key Report, Consumers Are Still
Frustrated Trying to Fix Credit Reporting Errors'',
showed that at least two of the three largest CRAs use
quota systems to force employees to process disputes
hastily and without the opportunity for conducting
meaningful investigations. At least one nationwide CRA
only allowed dispute resolution staff 5 minutes to
handle a consumer's call. Furthermore, these CRAs were
found to have awarded bonuses for meeting quotas and
punished those who didn't meet production numbers with
probation.
(R) Unlike most other business relationships, where
consumers can register their satisfaction or
unhappiness with a particular credit product or service
simply by taking their business elsewhere, consumers
have no say in whether their information is included in
the CRAs databases and limited legal remedies to hold
the CRAs accountable for inaccuracies or poor service.
(S) Accordingly, despite the existing statutory
mandate for CRAs to follow reasonable procedures to
assure the maximum possible accuracy of the information
whenever they prepare consumer reports, numerous
studies, the high volume of consumer complaints
submitted to the Consumer Bureau about incorrect
information on consumer reports, and supervisory
activities by the Consumer Bureau demonstrate that CRAs
continue to skirt their obligations under the law.
(2) Incorrect information on consumer reports.--
(A) Consumers are entitled to dispute errors on
their consumer reports with either the CRA, who issued
the report, or directly with furnishers, who supplied
the account information to the CRA, and request that
mistakes be deleted or removed. Consumers, who believe
an investigation has not correctly resolved their
dispute, however, have few options, other than
requesting that a statement about the dispute be
included with their future reports.
(B) CRAs have a statutory obligation under the FCRA
to perform a reasonable investigation by conducting a
substantive and searching inquiry when a consumer
disputes an item on their report. In doing so, CRAs
must conduct an independent review about the accuracy
of any disputed item and cannot merely rely on a
furnisher's ``rubber-stamp'' verification of the
integrity of the information they have provided to
CRAs.
(C) In ``Report to Congress Under Section 319 of
the Fair and Accurate Credit Transactions Act of 2003''
released by the Federal Government in December 2012,
found that 26 percent of survey participants identified
at least one potentially material error on their
consumer reports, and 13 percent experienced a change
in their credit score once the error was fixed.
(D) Consumer Bureau examiners have identified
repeated deficiencies with the nationwide CRAs'
information collection. In the fall 2019 ``Supervisory
Highlights'', the Consumer Bureau noted continued
weaknesses with CRAs' methods and processes for
assuring maximum possible accuracy in their reports.
Examiners also found, with certain exceptions, no
quality control policies and procedures in place to
test consumer reports for accuracy.
(E) In its ``Credit Reporting Complaint Snapshot''
released in February 2014, the Consumer Bureau found
that consumers were uncertain about the depth and
validity of the investigations performed about a
disputed item. Consumers also expressed frustration
that, even though they provided supporting materials
that they believed demonstrated the inaccuracy of the
information provided by furnishers, errors continued to
remain on their reports.
(F) In the winter 2015 ``Supervisory Highlights''
released in March 2015, the Consumer Bureau reported
that one or more nationwide CRAs failed to adequately
fulfill their dispute-handling obligations, including
by not forwarding to furnishers all relevant
information found in letters and supporting documents
supplied by consumers when they submitted disputes
failing to notify consumers that they had completed
investigations, and not providing consumers with the
results of the CRAs' reviews about their disputes.
(G) Consumer Bureau examiners also noted in the
fall 2016 ``Supervisory Highlights'' released in
October 2016 that one or more entities failed to
provide adequate guidance and training to staff about
how to differentiate FCRA disputes from general
customer inquiries, complaints, or debt validation
requests. Consumer Bureau supervisors also directed one
or more entities to develop and implement reasonable
procedures to ensure that direct and indirect disputes
are appropriately logged, categorized, and resolved.
(H) Consumers' increasing frustration about the
difficulties of trying to fix credit reporting errors,
evidenced through the volume of consumer complaints
related to errors submitted to the Consumer Bureau, are
also echoed in another Federal Government study issued
in January 2015. In the ``Report to Congress under
Section 319 for the Fair and Accurate Credit
Transactions Act of 2003'', the study found that nearly
70 percent (84 people) of participants from a previous
survey that had filed disputes with CRAs continued to
believe that at least some of the disputed information
remained inaccurate at the time of the follow-up
survey. Despite these views, 50 percent (42 people) of
the survey participants decided to just give up trying
to fix the errors, with only 45 percent (38 people) of
them planning to continue to try to resolve their
disputes.
(I) The consistently high volume of consumer
complaints submitted to the Consumer Bureau about
credit reporting errors, coupled with the largest CRAs'
repeated quality control weaknesses found by Consumer
Bureau examiners, show that the nationwide CRAs have
failed to establish and follow reasonable procedures to
assure maximum accuracy of information and to conduct
independent investigations of consumers' disputes.
These ongoing problems demonstrate the need for
legislation to--
(i) enhance obligations on furnishers to
substantiate information and require furnishers
to keep records for the same amount of time
that adverse information about these accounts
may appear on a person's consumer report;
(ii) eliminate CRAs' discretion to
determine the relevancy of materials provided
by consumers to support their dispute claims by
instead requiring them to pass all material
onto furnishers and eliminating CRA's
discretion to deem some disputes frivolous or
irrelevant when a consumer resubmits a claim
that they believe has been inadequately
resolved;
(iii) enhance educational content on CRAs'
websites to improve consumers' understanding of
the dispute process and to make it easier for
all consumers to initiate claims, including by
providing these disclosures in other languages
besides English; and
(iv) create a new consumer right to appeal
reviews by CRAs and furnishers of the initial
disputes.
(3) Injunctive relief.--
(A) Despite the fact that the FCRA currently
provides implicit authority for injunctive relief,
consumers have been prevented from exercising this
right against CRAs. Legislation explicitly clarifying
this right is intended to underscore congressional
intent that injunctive relief should be viewed as a
remedy available to consumers.
(B) Myriad findings by the courts, regulators,
consumers, and consumer advocates make clear that CRAs
have failed to establish adequate standards for the
accuracy and completeness of consumer reports, yet the
nationwide CRAs have demonstrated little willingness to
voluntarily retool their policies and procedures to fix
the problems.
(C) Providing courts with explicit authority to
issue injunctive relief, by telling the CRAs to remedy
unlawful practices and procedures, would further CRAs'
mandate under the FCRA to assure the maximum possible
accuracy and completeness of information contained on
credit reports.
(D) Absent explicit authority to issue injunctions,
history suggests that the nationwide CRAs are likely to
continue conducting business as usual in treating any
monetary settlements with individual consumers and
fines imposed by State attorneys general and Federal
regulators, simply as the ``cost of doing business''.
(4) Credit scores.--
(A) While nationwide CRAs are required by law to
supply consumers with a free copy of their credit
report annually, they can charge consumers to obtain a
credit score disclosure.
(B) Many consumers do not realize that they have
more than just ``one'' credit score. Because the
submission of credit information to CRAs is voluntary
and not all furnishers submit information to every CRA,
the information contained in a report also varies among
CRAs. As a result, the credit score generated by each
CRA is also likely to vary, resulting in potentially
different credit decisions based on an evaluation of
different credit reports obtained from different CRAs.
(C) A February 2015 Consumer Bureau report titled
``Consumer Voices on Credit Reports and Scores'' found
that consumers had questions about what actions to take
to improve their scores once they had seen them,
suggesting that additional disclosures and educational
content would be helpful to consumers. The Consumer
Bureau found that consumers were confused by
conflicting advice on how to improve their scores.
(D) That report also noted that consumers found the
process for obtaining consumer reports and credit
scores confusing. Consumers also were uncertain about
whether, and under what circumstances, they could
obtain a consumer report for free.
(5) Private education loans.--
(A) The Consumer Bureau's October 2014 report
titled ``Annual Report of the CFPB Student Loan
Ombudsman'' noted many private education loan
borrowers, who sought to negotiate a modified repayment
plan when they were experiencing a period of financial
distress, were unable to get assistance from their loan
holders, which often resulting in them defaulting on
their loans. This pattern resembles the difficulty that
a significant number of mortgage loan borrowers
experienced when they sought to take responsible steps
to work with their mortgage loan servicer to avoid
foreclosure during the Great Recession.
(B) Although private student loan holders may allow
a borrower to postpone payments while enrolled in
school full-time, many limit this option to a certain
time period, usually 48 to 66 months. This limited time
period may not be sufficient for those who need
additional time to obtain their degree or who want to
continue their education by pursing a graduate or
professional degree. The Consumer Bureau found that
borrowers who were unable to make payments often
defaulted or had their accounts sent to collections
before they were even able to graduate.
(6) Deceptive practices at certain proprietary education
institutions and career education programs.--
(A) NCLC cited the proliferation of law enforcement
actions against many for-profit schools in its June
2014 report, titled ``Ensuring Educational Integrity:
10 Steps to Improve State Oversight of For-profit
Schools'', to demonstrate the pervasive problem in this
sector of targeting low-income students with deceptive
high-pressure sales techniques involving inflated job
placement rates and misleading data on graduate wages,
and false representations about the transferability of
credits and the employability of graduates in
occupations that require licensure. Student loan
borrowers at these schools may be left with nothing but
worthless credentials and large debt. Those who default
on their student loans face years with damaged credit
that will adversely impact their ability to rent or buy
homes, purchase cars, and find employment.
(B) The closure and bankruptcy of Corinthian
Colleges, which was found to have deceived students by
steering them into high-interest student loans based on
misleading graduation rates and employment data, is a
good example of the problem. Even after its closure,
many Corinthian students remained saddled with student
loan debt, worthless degrees, and few prospects for
employment.
(C) Attending a 2-year, for-profit college costs,
on average, four times as much as attending a community
college. Students at for-profit colleges represent only
about 11 percent of the total higher education
population but a startling 44 percent of all Federal
student loan defaults, according to the United States
Department of Education (``DOE'').
(D) According to NCLC, a disproportionate number of
for-profit students are low-income and people of color.
These schools target veterans, working parents, first-
generation students, and non-English speaking students,
who may be more likely than their public or private
nonprofit school counterparts to drop out, incur
enormous student debt, and default on this debt. In the
2011-2012 school year, 28 percent of African Americans
and 15 percent of Latinos attending 4-year institutions
were enrolled in a for-profit school, compared to 10
percent of Whites.
(E) As highlighted in a press release titled
``Obama Administration Announces Final Rules to Protect
Students from Poor-Performing Career College
Programs'', that was issued by the DOE on October 30,
2014, ``[t]oo often, students at career colleges--
including thousands of veterans--are charged excessive
costs, but don't get the education they paid for.
Instead, students in such programs are provided with
poor quality training, often for low-wage jobs or in
occupations where there are simply no job
opportunities. They find themselves with large amounts
of debt and, too often, end up in default. In many
cases, students are drawn into these programs with
confusing or misleading information.''.
(7) Medical debt.--
(A) Research by the Consumer Bureau has found that
the inclusion of medical collections on consumer
reports has unfairly reduced consumers' credit scores.
(B) The Consumer Bureau's review of 5 million
anonymized credit files from September 2011 to
September 2013, for example, found that credit scores
may underestimate a person's creditworthiness by up to
10 points for those who owe medical debt, and may
underestimate a person's creditworthiness by up to 22
points after the medical debt has been paid. For
consumers with lower credit scores, especially those on
the brink of what is considered subprime, a 10 to 22
point decrease in their credit scores can have a
significant impact on their lives, including by
affecting whether they are able to qualify for credit
and, if so, the terms and conditions under which it is
extended to them.
(C) The Consumer Bureau found that half of all
collections trade lines that appear on consumer reports
are related to medical bills claimed to be owed to
hospitals and other medical providers. These trade
lines affect the reports of nearly one-fifth of all
consumers in the credit reporting system.
(D) The Consumer Bureau has found that there are no
objective or enforceable standards that determine when
a debt can or should be reported as a collection trade
line. Because debt buyers and collectors determine
whether, when, and for how long to report a collection
account, there is only a limited relationship between
the time period reported, the severity of a
delinquency, and when or whether a collection trade
line appears on a consumer's credit report.
(E) Medical bills can be complex and confusing for
many consumers, which results in consumers' uncertainty
about what they owe, to whom, when, or for what, that
may cause some people, who ordinarily pay their bills
on time, to delay or withhold payments on their medical
debts. This uncertainty can also result in medical
collections appearing on consumer reports. In a
December 2014 report titled ``Consumer Credit Reports:
A Study of Medical and Non-Medical Collections'', the
Consumer Bureau found that a large portion of consumers
with medical collections show no other evidence of
financial distress and are consumers who ordinarily pay
their other financial obligations on time. Unlike with
most credit products or services, such as credit cards,
installment loans, utilities, or wireless or cable
services that have contractual account disclosures
describing the terms and conditions of use, most
consumers are not told what their out-of-pocket medical
costs will be in advance. Consumers needing urgent or
emergency care rarely know, or are provided, the cost
of a medical treatment or procedure before the service
is rendered.
(F) The Consumer Bureau concluded that the presence
of medical collections is less predictive of future
defaults or serious delinquencies than the presence of
a nonmedical collection in a study titled ``Data Point:
Medical Debt and Credit Scores'', issued in May 2014.
(G) FICO's latest credit scoring model, ``FICO 9'',
changes the treatment of paid collections to disregard
any collection matters that the consumer has paid in
full. FICO 9, however, is not yet widely used by
lenders.
(H) VantageScore's latest credit scoring model,
``VantageScore 4.0'', will be available in the fall of
2017. This model will penalize medical collections less
than non-medical ones.
(I) The three nationwide CRAs entered into a
settlement agreement with the New York State attorney
general in 2015 to address deficiencies in their
dispute resolution process and enhance the accuracy of
items on reports. These policy changes will be
implemented in a three-phased rollout, culminating by
June 2018. Subsequently, these CRAs entered into a
cooperative agreement with 31 State Attorneys General,
which was the basis of the creation of the National
Consumer Assistance Plan (``NCAP'') to change some of
their business practices.
(J) While the CRAs appear to be voluntarily
adopting policy changes on a nationwide basis, they are
not obligated to do so for consumers who reside in
States that are not party to any of the consent orders.
(K) As a result of the settlement agreements, the
three nationwide CRAs will set a 180-day waiting period
before including medical collections on a report and
will remove a medical collection from a report once it
is paid by an insurance company. While this change will
benefit many, once a medical collection appears on a
report, it will only be deleted or suppressed if it is
found to have been the insurance company's obligation
to pay and the insurer pays it. Given the research
showing there is little predictive value in medical
debt information, medical collections that are paid or
settled should quickly be removed from a report,
regardless of who pays or settles this debt.
(8) Financial abuse by known persons.--
(A) Financial abuse and exploitation are frequently
associated with domestic violence. This type of abuse
may result in fraudulent charges to a credit card or
having fraudulent accounts created by the abuser in the
survivor's name that could affect ratings by CRAs.
Financial abuse may also result in the survivor's
inability to make timely payments on their valid
obligations due to loss or changes in income that can
occur when their abuser steals from or coerces the
survivor to relinquish their paychecks or savings that
could affect ratings by CRAs.
(B) By racking up substantial debts in the
survivor's name, abusers are able to exercise financial
control over their survivors to make it economically
difficult for the survivor, whose credit is often
destroyed, to escape the situation.
(C) Domestic abuse survivors with poor credit are
likely to face significant obstacles in establishing
financial independence from their abusers. This can be
due, in part, because consumer reports may be used when
a person attempts to obtain a checking account,
housing, insurance, utilities, employment, and even a
security clearance as required for certain jobs.
(D) Providing documentation of identity (``ID'')
theft in order to dispute information on one's consumer
report can be particularly challenging for those who
know their financial abuser.
(E) While it is easier for consumers who obtain a
police report to remove fraudulent information from
their consumer report and prevent it from reappearing
in the future, according to the Empire Justice Center,
safety and other noncredit concerns may impact the
capacity of a survivor of financial abuse committed by
a known person to turn to law enforcement to get a
police report.
(F) According to the Legal Aid Society in New York,
domestic abuse survivors, seeking to remove adverse
information stemming from financial abuse by contacting
their furnishers directly, are likely to face
skepticism about claims of ID theft perpetrated by a
partner because of an assumption that they are aware
of, and may have been complicit in, the activity which
the survivor alleges stems from financial abuse.
(9) Deceptive and misleading marketing practices.--
(A) The Consumer Bureau's February 2015 report
titled ``Consumer Voices on Credit Reports and Scores''
found that some consumers did not obtain a copy of
their consumer report due to concerns about security or
of being trapped into purchasing unwanted products like
an additional report or a credit monitoring service.
(B) In January 2017, the Consumer Bureau fined
TransUnion and Equifax for deceptively marketing credit
scores for purchase by consumers as the same credit
scores typically used by lenders to determine
creditworthiness and for luring consumers into costly
subscription services that were advertised as ``free''
or ``$1'' that automatically charged recurring fees
unless cancelled by consumers. The Consumer Bureau also
found that Equifax was illegally advertising its
products on webpages that consumers accessed through
AnnualCreditReport.com before consumers obtained their
free disclosures. Because of these troubling practices,
TransUnion was ordered to pay $13.9 million in
restitution to harmed consumers and a civil penalty of
$3 million to the Consumer Bureau. Equifax was ordered
to pay more than $3.7 million to affected consumers as
well as a civil money penalty of $2.5 million to the
Consumer Bureau. As part of the consent orders, the
CRAs are also supposed to change the way that they sell
their products to consumers. The CRAs must also obtain
consumers' express consent before enrolling them into
subscription services as well as make it easer for
consumers to cancel these programs.
(C) The Consumer Bureau fined the other nationwide
CRA--Experian--in March 2017 for deceiving consumers
about the use of credit scores that it marketed and
sold to consumers as credit scores that were used by
lenders and for illegally advertising its products on
web pages that consumers accessed through
AnnualCreditReport.com before they obtained their free
annual disclosures. Experian was ordered to pay more
than $3.7 million in restitution to harmed consumers
and a civil monetary penalty of $2.5 million to the
Consumer Bureau.
(D) The Consumer Bureau's January and March 2017
consent orders with the three nationwide CRAs show that
these CRAs have enticed consumers into purchasing
products and services that they may not want or need,
in some instances by advertising products or services
``free'' that automatically converted into an ongoing
subscription service at the regular price unless
cancelled by the consumer. Although these CRAs must now
change their deceptive marketing practices, codifying
these duties is an appropriate way to ensure that these
companies never revert back to such misleading tactics.
(E) Given the ubiquitous use of consumer reports in
consumers' lives and the fact that consumers'
participation in the credit reporting system is
involuntary, CRAs should also prioritize providing
consumers with the effective means to safeguard their
personal and financial information and improve their
credit standing, rather than seeking to exploit
consumers' concerns and confusion about credit
reporting and scoring, to boost their companies'
profits.
(F) Vulnerable consumers, who have legitimate
concerns about the security of their personal and
financial information, deserve clear, accurate, and
transparent information about the credit reporting
tools that may be available to them, such as fraud
alerts and freezes.
(10) Clarity in credit scoring.--
(A) The February 2015 report of the Bureau of
Consumer Financial Protection titled ``Consumer Voices
on Credit Reports and Scores'' found that some
consumers are reluctant to comparison shop for loans
and other types of consumer credit products out of fear
that they will lower their credit scores by doing so.
(B) The Consumer Bureau found that one of the most
common barriers for people in reviewing their own
credit reports and shopping for the best credit terms
was a lack of understanding of the differences between
``soft'' and ``hard'' inquiries and whether requesting
a copy of their own report would adversely impact their
credit standing.
(C) The Bureau of Consumer Financial Protection
revealed that consumers with accurate perceptions of
their creditworthiness may be better equipped to shop
for favorable credit terms.
(11) Credit checks and employment decisions.--
(A) The use of consumer reports as a factor in
making hiring decisions has been found to be prevalent
in a diverse array of occupations, and is not limited
to certain high-level management or executive
positions.
(B) According to the California Labor Federation,
only 25 percent of employers researched the credit
history of job applicants in 1998. However, this
practice had increased to 43 percent by 2006 and to 60
percent by 2011.
(C) A study titled ``Do Job Applicant Credit
Histories Predict Job Performance Appraisal Ratings or
Termination Decisions?'', published in 2012, found
that, while credit history might conceptually measure a
person's level of responsibility, ability to meet
deadlines, dependability, or integrity, it does not, in
practice, actually predict an employee's performance or
likelihood to quit. Credit reports contain many
inaccuracies and credit history can be contaminated by
events that are sometimes outside a person's control,
such as a sudden medical expense after an accident or
the loss of a job during an economic downturn. The
study found that there is no benefit from using credit
history to predict job performance or turnover.
(D) Despite the absence of data showing a
correlation between job performance and credit-
worthiness, employers continue to use credit checks as
a proxy for assessing character and integrity.
According to a 2012 Society for Human Resource
Management survey, organizations indicated that they
used credit checks on job candidates primarily to
reduce or prevent theft and embezzlement and to
minimize legal liability for negligent hiring.
(E) The use of credit checks for employment
purposes creates a true ``catch-22'' for unemployed
people with impaired credit. For example, the financial
hardship caused by losing a job may cause some
unemployed individuals to make late or partial payments
on their bills, but their poor credit standing caused
by this negative information on their consumer report
can also impede their chances of obtaining a new job to
end their financial distress.
(F) A September 2014 report by the New York City
Council's Committee on Civil Rights noted that, for
those who have been unemployed for an extended period
of time and whose credit has suffered as they fell
behind on bills, the use of credit reports in the
hiring process can exacerbate and perpetuate an already
precarious situation.
(G) In a March 2013 Demos report titled
``Discredited: How Employment Credit Checks Keep Out
Qualified Workers Out of a Job'', one in four survey
participants who were unemployed said that a potential
employer had requested to check their credit report as
part of a job application. Among job applicants with
blemished credit histories in the survey, one in seven
had been told that they were not being hired because of
their credit history.
(H) While job applicants must give prior approval
for a prospective employer to pull their credit reports
under the FCRA, this authorization, as a practical
matter, does not constitute an effective consumer
protection because an employer may reject any job
applicant who refuses a credit check.
(I) Some negative information on a report may stem
from uncontrollable circumstances, or significant life
events in a consumer's life, such as a medical crisis
or a divorce. Demos found that poor credit is
associated with household unemployment, lack of health
coverage, and medical debt, which are factors that
reflect economic conditions in the country and personal
misfortune that have little relationship with how well
a job applicant would perform at work.
(J) In October 2011, FICO noted that from 2008 to
2009 approximately 50 million people experienced a 20-
point drop in their credit scores and about 21 million
saw their scores decline by more than 50 points. While
the Great Recession reduced many consumers' credit
scores due to foreclosures and other financial
hardships, the financial crisis had a particularly
harsh impact on African Americans and Latinos, as
racial and ethnic minorities and communities of color
were frequently targeted by predatory mortgage lenders
who steered borrowers into high-cost subprime loans,
even when these borrowers would have qualified for less
costly prime credit.
(K) A May 2006 Brookings Institution report titled
``Credit Scores, Reports, and Getting Ahead in
America'' found that counties with a relatively higher
proportion of racial and ethnic minorities in the
United States tended to have lower credit scores
compared with counties that had a lower concentration
of communities of color.
(L) Studies have consistently found that African
American and Latino households tend, on average, to
have lower credit scores than White households. The
growing use of credit checks, therefore, may
disproportionately screen otherwise qualified racial
and ethnic minorities out of jobs, leading to
discriminatory hiring practices, and further
exacerbating the trend where unemployment for African
American and Latino communities is elevated well above
the rate of Whites.
(M) A 2012 Demos survey found that 65 percent of
White respondents reported having good or excellent
credit scores while over half of African American
households reported only having fair or bad credit.
(12) Deceptive and misleading marketing practices.--
(A) The Consumer Bureau's February 2015 report
titled ``Consumer Voices on Credit Reports and Scores''
found that some consumers did not obtain a copy of
their consumer report due to concerns about security or
of being trapped into purchasing unwanted products like
an additional report or a credit monitoring service.
(B) In January 2017, the Consumer Bureau fined
TransUnion and Equifax for deceptively marketing credit
scores for purchase by consumers as the same credit
scores typically used by lenders to determine
creditworthiness and for luring consumers into costly
subscription services that were advertised as ``free''
or ``$1'' that automatically charged recurring fees
unless cancelled by consumers. The Consumer Bureau also
found that Equifax was illegally advertising its
products on webpages that consumers accessed through
AnnualCreditReport.com before consumers obtained their
free disclosures. Because of these troubling practices,
TransUnion was ordered to pay $13.9 million in
restitution to harmed consumers and a civil penalty of
$3 million to the Consumer Bureau. Equifax was ordered
to pay more than $3.7 million to affected consumers as
well as a civil money penalty of $2.5 million to the
Consumer Bureau. As part of the consent orders, the
CRAs are also supposed to change the way that they sell
their products to consumers. The CRAs must also obtain
consumers' express consent before enrolling them into
subscription services as well as make it easer for
consumers to cancel these programs.
(C) The Consumer Bureau fined the other nationwide
CRA--Experian--in March 2017 for deceiving consumers
about the use of credit scores that it marketed and
sold to consumers as credit scores that were used by
lenders and for illegally advertising its products on
web pages that consumers accessed through
AnnualCreditReport.com before they obtained their free
annual disclosures. Experian was ordered to pay more
than $3.7 million in restitution to harmed consumers
and a civil monetary penalty of $2.5 million to the
Consumer Bureau.
(D) The Consumer Bureau's January and March 2017
consent orders with the three nationwide CRAs show that
these CRAs have enticed consumers into purchasing
products and services that they may not want or need,
in some instances by advertising products or services
``free'' that automatically converted into an ongoing
subscription service at the regular price unless
cancelled by the consumer. Although these CRAs must now
change their deceptive marketing practices, codifying
these duties is an appropriate way to ensure that these
companies never revert back to such misleading tactics.
(E) Given the ubiquitous use of consumer reports in
consumers' lives and the fact that consumers'
participation in the credit reporting system is
involuntary, CRAs should also prioritize providing
consumers with the effective means to safeguard their
personal and financial information and improve their
credit standing, rather than seeking to exploit
consumers' concerns and confusion about credit
reporting and scoring, to boost their companies'
profits.
(F) Vulnerable consumers, who have legitimate
concerns about the security of their personal and
financial information, deserve clear, accurate, and
transparent information about the credit reporting
tools that may be available to them, such as fraud
alerts and freezes.
(13) Protections for consumers' credit information.--
(A) Despite heightened awareness, incidents of ID
theft continue to rise. In February 2015, the Federal
Government reported that ID theft was the top consumer
complaint that it received for the 15th consecutive
year. As these incidents increase, consumers experience
significant financial loss and emotional distress from
the inability to safeguard effectively and
inexpensively their credit information from bad actors.
(B) According to a Carnegie Mellon study, children
are 50 times more likely than adults to have their
identities stolen. Child identities are valuable to
thieves because most children do not have existing
files, and their parents may not notice fraudulent
activity until their child applies for a student loan,
a job, or a credit card. As a result, the fraudulent
activity of the bad actors may go undetected for years.
(C) Despite the increasing incidents of children's
ID theft, parents who want to proactively prevent their
children from having their identity stolen, may not be
able to do so. Only one of the three nationwide CRAs
currently allows parents from any State to set up a
freeze for a minor child. At the other two nationwide
CRAs, parents can only obtain a freeze after a child
has become an ID theft victim because, it is only at
this point, that these CRAs have an existing credit
file for the child. While many States have enacted laws
to address this problem, there is no existing Federal
law.
(D) According to Javelin Strategy & Research's 2015
Identity Fraud study, $16 billion was stolen by
fraudsters from 12.7 million American consumers in
2014. Similarly, the United States Department of
Justice found an estimated 7 percent of all residents
age 16 or older (about 17.6 million persons) in this
country were victims of one or more incidents of ID
theft in 2014, and the number of elderly victims age 65
or older (about 86 percent) increased from 2.1 million
in 2012 to 2.6 million in 2014.
(E) Consumers frequently express concern about the
security of their financial information. According to a
2015 MasterCard survey, a majority of consumers (77
percent) have anxiety about the possibility that their
financial information and Social Security numbers may
be stolen or compromised, with about 55 percent of
consumers indicating that they would rather have naked
pictures of themselves leaked online than have their
financial information stolen.
(F) That survey also revealed that consumers' fears
about the online security of their financial
information even outweighed consumers' worries about
other physical security dangers such as having their
houses robbed (59 percent) or being pickpocketed (46
percent).
(G) According to Consumer Reports, roughly 50
million American consumers spent about $3.5 billion in
2010 to purchase products aimed at protecting their
identity, with the annual cost of these services
ranging from $120 to $300. As risks to consumers'
personal and financial information continue to grow,
consumers need additional protections to ensure that
they have fair and reasonable access to the full suite
of ID theft and fraud prevention measures that may be
right for them.
SEC. 4. EFFECTIVE DATE.
Except as otherwise specified, the amendments made by this Act
shall take effect 2 years after the date of the enactment of this Act.
SEC. 5. DISCRETIONARY SURPLUS FUND.
(a) In General.--The dollar amount specified under section
7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is
reduced by $26,000,000 (increased by $1,000,000) (increased by
$1,000,000) (increased by $15,000,000).
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on September 30, 2029.
TITLE I--IMPROVEMENTS TO THE DISPUTE PROCESS
SEC. 101. DISPUTE PROCEDURES AND DISCLOSURES RELATING TO
REINVESTIGATIONS.
(a) In General.--Section 611(a) of the Fair Credit Reporting Act
(15 U.S.C. 1681i(a)) is amended to read as follows:
``(a) Reinvestigations of Disputed Information by a Consumer
Reporting Agency.--
``(1) Reinvestigations required.--
``(A) In general.--Subject to subsection (f), 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 (either directly or indirectly
through a reseller or an authorized third party) of
such dispute, the agency shall, free of charge--
``(i) conduct a reasonable reinvestigation
using the process described in paragraph (3) to
determine whether the disputed information is
inaccurate, incomplete, or cannot be verified;
``(ii) notify the consumer that a notation
described in section 605(e) will be added to
the consumer's file until the reinvestigation
has been completed and that such notation can
be removed at the request of the consumer; and
``(iii) before the end of the 30-day period
beginning on the date on which the consumer
reporting agency receives the notice of the
dispute from the consumer or the reseller--
``(I) record the current status of
the disputed information; or
``(II) delete or modify the item in
accordance with paragraph (3)(D).
``(B) Extension of period to reinvestigate.--Except
as provided in subparagraph (C), the 30-day period
described in subparagraph (A) may be extended for
period not to exceed 15 days if the consumer reporting
agency receives additional information from the
consumer or the reseller regarding the dispute after
the date on which the consumer reporting agency
notified any person who provided any item of
information in dispute under paragraph (2)(A).
``(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 disputed information
is found to be inaccurate or incomplete, or the
consumer reporting agency determines that the disputed
information cannot be verified.
``(2) Prompt notice of dispute to furnisher of information;
provision of information regarding dispute provided by the
consumer or reseller.--
``(A) In general.--Before the end of the period of
5 business days beginning on the date on which a
consumer reporting agency receives notice of a dispute
from any consumer or reseller under paragraph (1)(A),
the consumer reporting 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 such person. The notice
shall include all information, including substantiating
documents, regarding the dispute that was submitted to
the consumer reporting agency.
``(B) Provision of additional information regarding
dispute after notification to the furnisher of
information.--If a consumer reporting agency receives
additional information regarding the dispute from the
consumer or reseller after the agency provides the
notification described under subparagraph (A) and
before the end of the 30-day period described in
paragraph (1)(A), the consumer reporting agency shall,
not later than 3 business days after receiving such
information, provide such information to the person who
provided the information in dispute.
``(3) Reasonable standards for consumer reporting agencies
for conducting reinvestigations and resolving disputes
submitted by consumers.--
``(A) In general.--In conducting a reinvestigation
of disputed information, a consumer reporting agency
shall, at a minimum--
``(i) maintain sufficient resources and
trained staff, commensurate with the volume and
complexity of disputes received or reasonably
anticipated to be received, to determine
whether the disputed information is accurate,
complete, or can be verified by the person who
provided the information;
``(ii) ensure that all staff involved at
any level of the reinvestigation process,
including any individual with ultimate
authority over determining whether the disputed
information is inaccurate, incomplete, or
cannot be verified, are located within the
United States;
``(iii) verify that the personally
identifiable information of the consumer
submitting the dispute matches the personally
identifiable information contained in the
consumer's file, and that such information is
accurate and complete;
``(iv) verify that the consumer reporting
agency has a record of the information being
disputed; and
``(v) conduct a reasonable review that
considers all information, including
substantiating documents, provided by the
consumer or reseller.
``(B) Consumer reporting.--The consumer reporting
agency shall not impose any limitation or otherwise
impede the ability of a consumer to submit information
about the disputed item.
``(C) Independent analysis.--The reinvestigation
conducted under subparagraph (A) shall be an
independent analysis, separate from any investigation
by a reseller or a person who provided the disputed
information.
``(D) Deletion or modification of information
contained in a consumer file.--If the disputed
information is found to be inaccurate, incomplete, or
cannot be verified, the dispute resolution staff of the
consumer reporting agency shall have the direct
authority to delete or modify such information in the
consumer's file, as appropriate, during the 30-day
period described in paragraph (1)(A), shall promptly
notify the consumer of the results of the
reinvestigation as described in paragraph (4), and
shall promptly notify any person who provided such
information to the consumer reporting agency of the
modification or deletion made to the consumer's file.
``(4) Notice to consumer of results of reinvestigation.--
``(A) In general.--Not later than 5 business days
after the conclusion of a reinvestigation conducted
under this subsection, the consumer reporting agency
shall provide written notice to the consumer of the
results of the reinvestigation by postal mail or, if
authorized by the consumer for that purpose, by other
means available to the agency.
``(B) Contents of notice to consumer of results of
reinvestigation.--The notice described in subparagraph
(A) shall include--
``(i) a statement that the reinvestigation
of the disputed information has been completed;
``(ii) a statement informing the consumer
as to whether the disputed information was
determined to be inaccurate, incomplete, or
unverifiable, including a statement of the
specific reasons supporting the determination;
``(iii) if information in the consumer's
file has been deleted or modified as a result
of the reinvestigation--
``(I) a copy of the consumer report
and credit score or educational score
(if applicable) that is based upon the
consumer's revised file;
``(II) a statement identifying the
specific information from the
consumer's file that was deleted or
modified because such information was
determined to be inaccurate,
incomplete, or unverifiable by the
consumer reporting agency;
``(III) a statement that the
consumer has the right, free of charge,
to obtain an additional consumer report
and credit score or educational credit
score (if applicable) within the 12-
month period following the date of the
conclusion of the reinvestigation,
regardless of whether the consumer
obtained or will obtain a free annual
consumer report and credit score or
educational score (if applicable) under
section 612; and
``(IV) a statement that the
consumer has the right, free of charge,
to request under subsection (d) that
the consumer reporting agency furnish
notifications of the consumer's revised
report;
``(iv) a description of the procedure used
by the dispute resolution staff of the consumer
reporting agency to determine the accuracy or
completeness of the information, including the
business name, mailing address, telephone
number, and Internet website address (if
available) of any person who provided
information who was contacted by the staff in
connection with the determination;
``(v) a statement that the consumer has the
right, free of charge, to add a narrative
statement to the consumer's file disputing the
accuracy or completeness of the information,
regardless of the results of the
reinvestigation by the agency, and the process
for submitting such a narrative pursuant to
subsection (b);
``(vi) a copy of all information relating
to the consumer that was used by the consumer
reporting agency in carrying out the
reinvestigation and relied upon as the basis
for the determination about the accuracy and
completeness of the disputed information;
``(vii) a statement that a consumer may,
free of charge, challenge the results of the
reinvestigation by appeal within 120 days after
the date the notice of the results of the
reinvestigation was provided to the consumer
and the process for submitting an appeal;
``(viii) a statement informing the consumer
that a notation described in section 605(e)
will be added to the file of the consumer
during the period in which the consumer appeals
the results of a reinvestigation and that such
notation can be removed at the request of the
consumer; and
``(ix) any other information, as determined
by the Bureau.
``(5) Requirements relating to reinsertion of previously
deleted or modified material.--
``(A) Certification of new determination that item
is accurate or complete.--A consumer reporting agency
may not reinsert into a consumer's file any information
that was previously deleted or modified pursuant to
paragraph (3)(D), unless the person who provided the
information--
``(i) requests that the consumer reporting
agency reinsert such information;
``(ii) submits a written certification that
the information is accurate and complete; and
``(iii) provides a statement describing the
specific reasons why the information should be
inserted.
``(B) Notice to consumer before reinsertion can
occur.--Upon receipt of a request for reinsertion of
disputed information under subparagraph (A), the
consumer reporting agency shall, not later than 5
business days before the consumer reporting agency
reinserts the information into the consumer's file,
notify the consumer in writing of such request for
reinsertion. Such notice shall include--
``(i) the business name, mailing address,
telephone number, and Internet website address
(if available) of any person who provided
information to or contacted the consumer
reporting agency in connection with the
reinsertion;
``(ii) a copy of the information relating
to the consumer, the certification that the
information is accurate or complete, and the
statement of the reasons supporting reinsertion
provided by the person who provided the
information to the consumer reporting agency
under subparagraph (A);
``(iii) a statement that the consumer may
obtain, free of charge and within the 12-month
period following the date the notice under this
subparagraph was issued, a consumer report and
credit score or educational score (if
applicable) from the consumer reporting agency
that includes the reinserted information,
regardless of whether the consumer obtained or
will obtain a free annual consumer report and
credit score or educational credit score (if
applicable) under section 612;
``(iv) a statement that the consumer may
appeal the determination that the previously
deleted or modified information is accurate or
complete and a description of the procedure for
the consumer to make such an appeal pursuant to
subsection (i); and
``(v) a statement that the consumer has the
right to add a narrative statement, free of
charge, to the consumer's file disputing the
accuracy or completeness of the disputed
information and a description of the process to
add such a narrative statement pursuant to
subsection (b).
``(6) Expedited dispute resolution.--If a consumer
reporting agency determines that the information provided by
the consumer is sufficient to substantiate that the item of
information is inaccurate, incomplete, or cannot be verified by
the person who furnished such information, and the consumer
reporting agency deletes or modifies such information within 3
business days of receiving notice of the dispute, the consumer
reporting agency shall be exempt from the requirements of
paragraph (4), if the consumer reporting agency provides to the
consumer--
``(A) prompt notice confirming the deletion or
modification of the information from the consumer's
file in writing or by other means, if agreed to by the
consumer when the information is disputed;
``(B) a statement of the consumer's right to
request that the consumer reporting agency furnish
notifications of a revised consumer report pursuant to
subsection (d);
``(C) not later than 5 business days after deleting
or modifying the information, a copy of the consumer
report and credit score or educational score (if
applicable) that is based upon the consumer's revised
file; and
``(D) a statement that the consumer may obtain,
free of charge and within the 12-month period following
the date the notice under this paragraph was sent to
the consumer, a consumer report and credit score or
educational score (if applicable) from the consumer
reporting agency, regardless of whether the consumer
obtained or will obtain their free annual consumer
report and credit score or educational score (if
applicable) under section 612.
``(7) No excuse for failure to conduct reinvestigation.--A
consumer reporting agency may not refuse to conduct a
reinvestigation under this subsection because the agency
determines that the dispute was submitted by an authorized
third party, unless the agency has clear and convincing
evidence that the third party is not authorized to submit the
dispute on the consumer's behalf. If the consumer reporting
agency refuses to reinvestigate a dispute for these reasons, it
shall provide a clear and conspicuous notice to the consumer
explaining the reasons for the refusal and describing the
specific information the consumer is required to provide for
the agency to conduct the reinvestigation.''.
(b) Ensuring Consumer Reporting Agencies Furnish Certain
Notifications Without Charge.--Section 611(d) of the Fair Credit
Reporting Act (15 U.S.C. 1681i(d)) is amended by inserting ``and
without charge'' after ``request of the consumer''.
(c) Including Specialty Consumer Reporting Agencies in Reports.--
(1) In general.--Section 611(e) of the Fair Credit
Reporting Act (15 U.S.C. 1681i(e)) is amended by inserting ``or
603(x)'' after ``section 603(p)''.
(2) Technical amendment.--Section 611(e)(1) of the Fair
Credit Reporting Act (15 U.S.C. 1681i(e)(1)) is amended by
striking ``The Commission'' and inserting ``The Bureau''.
(d) Conforming Amendments.--The Fair Credit Reporting Act (15
U.S.C. 1681 et seq.) is further amended--
(1) in section 605B(c)(2), by striking ``section
611(a)(5)(B)'' and inserting ``section 611(a)(5)'';
(2) in section 611--
(A) in subsection (c), by striking ``unless there
is reasonable grounds to believe that it is frivolous
or irrelevant,''; and
(B) in subsection (f)(3)--
(i) in subparagraph (A), by striking
``paragraph (6), (7), or (8) of subsection
(a)'' and inserting ``paragraph (4) or (5) of
subsection (a)''; and
(ii) in subparagraph (B), by striking ``in
the manner required under paragraph (8)(A)'';
and
(3) in section 623(b)(1)(B), by striking ``relevant''
before ``information''.
(e) Global Technical Corrections to References to Nationwide
Specialty Consumer Reporting Agency.--The Fair Credit Reporting Act (15
U.S.C. 1681 et seq.) is further amended--
(1) by striking ``section 603(w)'' and inserting ``section
603(x)'' each place such term appears; and
(2) in section 612(a)(1)(A), by striking ``(w)'' and
inserting ``(x)''.
SEC. 102. CONSUMER AWARENESS OF DISPUTE RIGHTS.
Section 611 of the Fair Credit Reporting Act (15 U.S.C. 1681i) is
amended by adding at the end the following new subsection:
``(h) Increased Consumer Awareness of Dispute Rights.--
``(1) In general.--Not later than 180 days after the date
of enactment of this subsection, each consumer reporting agency
described under subsection (p) or (x) of section 603 shall--
``(A) establish an Internet website accessible to
consumers; and
``(B) post on the home page of such website a
hyperlink to a separate webpage established and
maintained solely for the purpose of providing
information to a consumer about how to dispute an item
of information in the consumer report of the consumer.
``(2) Dispute webpage requirements.--For a consumer
reporting agency described under subsection (p) or (x) of
section 603, the separate dispute webpage described in
paragraph (1)(B)--
``(A) may not include any type or form of
marketing, advertising, information, or material
associated with any products or services offered or
sold to consumers;
``(B) shall clearly and conspicuously disclose a
concise statement regarding how to file a dispute
through the agency, free of charge, in the manner and
format prescribed by the Bureau;
``(C) shall describe the types of documents that
will be used by the agency in resolving the dispute,
including the business name and mailing address to
which a consumer may send such documents;
``(D) shall include a clear and concise explanation
of and the process for using electronic or other means
to submit such documents, free of charge, and without
any character or data limitation imposed by the agency;
``(E) shall include a statement that the consumer
may submit information, free of charge, that the
consumer believes will assist the consumer reporting
agency in determining the results of the
reinvestigation of the dispute;
``(F) shall clearly and conspicuously disclose a
statement describing the procedure likely to be used by
the consumer reporting agency in carrying out a
reinvestigation to determine the accuracy or
completeness of the disputed item of information,
including the time period in which the consumer will be
notified of the results of the reinvestigation, and a
statement that the agency may extend the
reinvestigation period by an additional 15 days if the
consumer submits additional information after a certain
date; and
``(G) shall provide translations of all information
on the webpage in each of the 10 most commonly spoken
languages, other than English, in the United States, as
determined by the Bureau of the Census on an ongoing
basis, and in formats accessible to individuals with
hearing or vision impairments.''.
SEC. 103. MAINTENANCE OF RECORDS BY FURNISHERS.
Section 623 of the Fair Credit Reporting Act (15 U.S.C. 1681s-2) is
amended by adding at the end the following new subsection:
``(f) Duty of Furnishers To Maintain Records of Consumers.--
``(1) In general.--A person who furnishes information to a
consumer reporting agency relating to a consumer who has an
account with that person shall maintain all information
necessary to substantiate the accuracy and completeness of the
information furnished, including any records establishing the
liability and terms and conditions under which credit was
extended to a consumer and any payment history with respect to
such credit.
``(2) Retention period.--Records described under paragraph
(1) shall be maintained until the information with respect to
which the records relate may no longer be included in a
consumer report pursuant to section 605.
``(3) Transfer of ownership.--If a person providing
information to a consumer reporting agency is acquired by
another person, or if another person acquires the right to
repayment connected to such information, the acquiring person
shall be subject to the requirements of this subsection with
respect to such information to the same extent as the person
who initially provided such information to the consumer
reporting agency. The person selling or transferring the right
to repayment shall provide the information described in
paragraph (1) to the transferee or the acquirer.''.
SEC. 104. DUTIES OF FURNISHERS RELATING TO DISPUTE PROCEDURES, NOTICES,
AND DISCLOSURES.
(a) Duty To Provide Accurate and Complete Information.--Section
623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)) is
amended--
(1) in the subsection heading, by inserting ``and
Complete'' after ``Accurate'';
(2) in paragraph (1)--
(A) by inserting ``or incomplete'' after
``inaccurate'' each place that term appears; and
(B) in subparagraph (D), by inserting ``or
completeness'' after ``accuracy''; and
(3) in paragraph (8)--
(A) in subparagraph (A), by inserting ``and
completeness'' after ``accuracy''; and
(B) in subparagraph (D), by inserting ``or
completeness'' after ``accuracy''.
(b) Negative Information Notices to Consumers.--Section 623(a)(7)
of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)(7)) is amended
to read as follows:
``(7) Duty of furnishers to inform consumers about
reporting negative information.--
``(A) General negative information warning notice
to all consumers prior to furnishing such
information.--
``(i) In general.--Any person that
regularly furnishes negative information to a
consumer reporting agency described in
subsection (p) or (x) of section 603 about
activity on any accounts of a consumer held by
such person or transactions associated with
credit extended to a consumer by such person
shall provide a written general negative
information warning notice to each such
consumer before such person may furnish any
negative information relating to such a
consumer.
``(ii) Content.--Such notice shall--
``(I) be clear and conspicuous;
``(II) describe the types of
activities that constitute negative
information;
``(III) inform the consumer that
the person may report negative
information relating to any such
accounts or transactions to a consumer
reporting agency described in
subsection (p) or (x) of section 603;
``(IV) state that the negative
information may appear on a consumer
report of the consumer for the periods
described in section 605 and that
during such periods, the negative
information may adversely impact the
consumer's credit score;
``(V) state that in some limited
circumstances, the negative information
may result in other adverse actions,
including a denial of a new job or a
promotion from existing employment; and
``(VI) state that the consumer has
right to--
``(aa) obtain a copy of
their consumer report and
credit score or educational
score (if applicable), which in
some instances can be obtained
free of charge, from any
consumer reporting agency to
which negative information may
be been sent; and
``(bb) dispute, free of
charge, any errors on a
consumer report relating to the
consumer.
``(iii) Timing of notice.--Such person
shall provide such notice to a consumer not
later than 90 days before the date on which the
person furnishes negative information relating
to such consumer.
``(B) Specific negative information notice to a
consumer.--
``(i) In general.--Any person described in
subparagraph (A) that has furnished negative
information relating to activity on any
accounts of a consumer held by such person or
transactions associated with credit extended to
a consumer by such person to a consumer
reporting agency described in subsection (p) or
(x) of section 603 shall send a written notice
to each such consumer.
``(ii) Content.--Such notice shall--
``(I) be clear and conspicuous;
``(II) inform the consumer that the
person has furnished negative
information relating to such accounts
or transactions to a consumer reporting
agency described in subsection (p) or
(x) of section 603;
``(III) identify any consumer
reporting agency to which the negative
information was furnished, including
the name of the agency, mailing
address, Internet website address, and
toll-free telephone number; and
``(IV) include the statements
described in subclauses (IV), (V), and
(VI) of subparagraph (A)(ii).
``(iii) Time of notice.--Such person shall
provide such notice to a consumer not later
than 5 business days after the date on which
the person furnished negative information
relating to such consumer.
``(C) Notice effective for subsequent
submissions.--After providing the notice described in
subparagraph (B), the person may submit additional
negative information to a consumer reporting agency
described in subsection (p) or (x) of section 603
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.
``(D) Non-traditional data furnishers.--Any person
that furnishes negative information to a consumer
reporting agency described in subsection (p) or (x) of
section 603 relating to any accounts of, or
transactions associated with, a consumer by such person
involving non-traditional data shall be subject to the
requirements described in subparagraphs (A), (B), and
(C).
``(E) Model notices.--
``(i) Duty of bureau.--Not later than 6
months after date of the enactment of this
paragraph, the Bureau shall issue model forms
for the notices described in subparagraphs (A)
and (B) that a person may use to comply with
the requirements of this paragraph.
``(ii) Use of model notice not required.--
No provision of this paragraph may be construed
to require a person to use the model notices
prescribed by the Bureau.
``(iii) Compliance using model notices.--A
person shall be deemed to be in compliance with
the requirements of subparagraph (A)(ii) or
(B)(ii) (as applicable) if the person uses the
model notice prescribed by the Bureau.
``(F) Issuance of general negative warning notice
without submitting negative information.--No provision
of this paragraph may be construed to require a person
described in subparagraph (A) or (D) to furnish
negative information about a consumer to a consumer
reporting agency described in subsection (p) or (x) of
section 603.
``(G) Safe harbor.--A person shall not be liable
for failure to perform the duties required by this
paragraph if the person reasonably believes that the
person is prohibited, by law, from contacting the
consumer.
``(H) Effective date.--The requirements of
subparagraphs (A), (B), (C), and (D) shall not take
effect until the date that is 6 months after the date
of the issuance of model forms for notices under
subparagraph (E).
``(I) Definitions.--In this paragraph, the
following definitions shall apply:
``(i) Negative information.--The term
`negative information' means information
concerning a consumer's delinquencies, late
payments, insolvency, or any form of default.
``(ii) Non-traditional data.--The term
`non-traditional data' relates to
telecommunications payments, utility payments,
rent payments, remittances, wire transfers, and
such other items as determined by the
Bureau.''.
(c) Duties of Furnishers After Receiving Notice of Dispute From a
Consumer.--Section 623(a)(8)(E) of the Fair Credit Reporting Act (15
U.S.C. 1681s-2(a)(8)(E)) is amended to read as follows:
``(E) Duties of furnishers after receiving notice
of dispute from a consumer.--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) promptly provide to each consumer
reporting agency to which the person furnished
the disputed information the notice of dispute;
``(ii) review all information, including
any substantiating documents, provided by the
consumer about the disputed information and
conduct an investigation, separate from any
reinvestigation by a consumer reporting agency
or a reseller conducted with respect to the
disputed information;
``(iii) 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,
complete an investigation of the disputed
information pursuant to the standards described
in subparagraph (G);
``(iv) notify the consumer, in writing, of
the receipt of the dispute that includes--
``(I) a statement about any
information additional to the
information that the person is required
to maintain under subsection (f) that
would support the person's ability to
carry out an investigation to resolve
the consumer's dispute; and
``(II) a statement that the
consumer reporting agency to which the
disputed information was provided will
include a notation described in section
605(e) in the consumer's file until the
investigation has been completed, and
information about how a consumer may
request that such notation is removed
by the agency;
``(v) if the investigation determines the
disputed information is inaccurate, incomplete,
or unverifiable, promptly notify each consumer
reporting agency to which the person furnished
such information in accordance with paragraph
(2); and
``(vi) notify the consumer of the results
of the investigation, in writing, in accordance
with subparagraph (H).''.
(d) Eliminating Furnishers' Authority To Dismiss Disputes as
Frivolous or Irrelevant.--Section 623(a)(8) of the Fair Credit
Reporting Act (15 U.S.C. 1681s-2(a)(8)) is amended by striking
subparagraph (F) and redesignating subparagraph (G) as subparagraph
(F).
(e) Additional Duties.--Section 623(a)(8) of the Fair Credit
Reporting Act (15 U.S.C. 1681s-2(a)(8)), as amended by subsection (d),
is further amended by adding at the end the following new
subparagraphs:
``(G) Reasonable standards for furnishers for
conducting investigations and resolving disputes
submitted by consumers.--In any investigation conducted
by a person who furnishes information to a consumer
reporting agency of an item of information being
disputed by a consumer, the person, at a minimum--
``(i) shall maintain sufficient resources
and trained staff, commensurate with the volume
and complexity of disputes received or
reasonably anticipated to be received, to
conduct investigations;
``(ii) shall verify that the person has a
record of the particular information being
disputed, consistent with the requirements of
subsection (f);
``(iii) shall verify that the personally
identifiable information of the consumer
submitting the dispute matches the personally
identifiable information contained on such
records;
``(iv) shall conduct a reasonable review to
determine whether the disputed information is
accurate, complete, and can be verified that
considers all the information, including any
substantiating documents, provided by the
consumer about the disputed information;
``(v) shall ensure that the investigation
is an independent analysis that is separate
from any reinvestigation by a consumer
reporting agency or a reseller conducted with
respect to the disputed information; and
``(vi) may not impose any limitations or
otherwise impede the ability of a consumer to
submit information, including any
substantiating documents, about the disputed
information.
``(H) Contents of the notice to the consumer about
the results of the investigation by the furnisher.--The
notice of the results of the investigation described in
subparagraph (E) shall include--
``(i) a statement informing the consumer as
to whether the disputed information was
determined to be inaccurate, incomplete, or
unverifiable;
``(ii) a statement of the specific reasons
supporting the results of the investigation;
``(iii) a description of the procedure used
by the dispute resolution staff of the person
who furnishes information to a consumer
reporting agency to determine the accuracy or
completeness of the information, including the
business name, mailing address, telephone
number, and Internet website address (if
available) of any person who was contacted by
the staff in connection with the determination;
``(iv) a copy of all information relating
to the consumer that was used in carrying out
the investigation and was the basis for any
determination about the accuracy or
completeness of the disputed information;
``(v) a statement that consumer will
receive, free of charge, a copy of their
consumer report and credit score or educational
credit score (if applicable), from any consumer
reporting agency to which the disputed
information had been provided, regardless of
whether the consumer obtained or will obtain a
free consumer report and credit score or
educational credit score (if applicable) in the
12-month period preceding receipt of the notice
described in this subparagraph pursuant to
section 612(a)(1);
``(vi) if the disputed information was
found to be inaccurate, incomplete, or
unverifiable, a statement that the consumer
report of the consumer shall be revised to
reflect the change to the consumer's file as a
result of the investigation;
``(vii) a statement that the consumer has
the right to appeal the results of the
investigation under paragraph (10), free of
charge, within 120 days after the date of the
notice of the results of the investigation was
provided to the consumer and the process for
submitting an appeal;
``(viii) a statement that the consumer may
add a narrative statement, free of charge, to
the consumer's file held by the consumer
reporting agency to which the information has
been furnished disputing the accuracy or
completeness of the information, regardless of
the results of the investigation by the person,
and the process for contacting any agency that
received the consumer's information from the
person to submit a narrative statement;
``(ix) a statement informing the consumer
that a notation described in section 605(e)
will be added to the consumer's file during the
period in which the consumer appeals the
results of an investigation and that such
notation can be removed at the request of the
consumer; and
``(x) a statement that the consumer has the
right to request a copy of their consumer
report and credit score or educational credit
score (if applicable), free of charge, within
the 12-month period following the date of the
conclusion of the investigation from any
consumer reporting agency in which the disputed
information had been provided, regardless of
whether the consumer obtained or will obtain a
free annual consumer report and credit score or
educational credit score (if applicable) under
this subparagraph or section 612(a)(1).''.
(f) Conforming Amendment.--Section 615(a)(4)(B) is amended--
(1) by striking ``, under section 611, with a consumer
reporting agency''; and
(2) by striking ``furnished by the agency'' and inserting
``to a consumer reporting agency under section 611 or to a
person who furnished information to an agency under section
623''.
SEC. 105. RIGHT TO APPEAL DISPUTES RELATING TO REINVESTIGATIONS AND
INVESTIGATIONS.
(a) Appeals of Reinvestigations Conducted by a Consumer Reporting
Agency.--Section 611 of the Fair Credit Reporting Act (15 U.S.C. 1681i)
is amended--
(1) in subsection (b), by inserting ``or if the consumer is
unsatisfied with the results of an appeal conducted under
subsection (i),'' after ``resolve the dispute,''; and
(2) by inserting after subsection (h) (as added by section
102) the following new subsection:
``(i) Consumer Right To Appeal Results of a Consumer Reporting
Agency Reinvestigation.--
``(1) In general.--Within 120 days after the date of
receipt of the results of a reinvestigation conducted under
subsection (a), a consumer (or authorized third party) may,
free of charge, appeal the results of such reinvestigation by
submitting a notice of appeal to the consumer reporting agency.
``(2) Notice of appeal.--
``(A) Requirements.--A notice of appeal described
in paragraph (1) may be submitted in writing, or
through a toll-free telephone number or other
electronic means established by the consumer reporting
agency (including on the Internet website described in
subsection (h)), and--
``(i) shall identify the information
contained in the consumer's file that is the
subject of the appeal;
``(ii) shall describe the specific reasons
for submitting the notice of appeal; and
``(iii) may provide any information the
consumer believes is relevant to substantiate
the validity of the dispute.
``(B) Consumer reporting agency notice to
consumer.--Upon receipt of such notice of appeal, the
consumer reporting agency shall promptly provide to the
consumer a statement confirming the receipt of the
consumer's notice of appeal that shall include--
``(i) an approximate date on which the
consumer's appeal review will be completed;
``(ii) the process and procedures by which
such review will be conducted; and
``(iii) an employee reference number or
other employee identifier for each of the
specific individuals designated by the consumer
reporting agency who, upon the request of the
consumer, may discuss the substance and status
of the appeal.
``(3) Consumer reporting agency requirements upon receipt
of notice of appeal.--
``(A) In general.--Not later than 20 days after
receiving a notice of appeal, the consumer reporting
agency shall review the appeal. If the consumer
reporting agency determines the information is
inaccurate, incomplete, or cannot be verified, the
consumer reporting agency shall delete or modify the
item of information being disputed by the consumer from
the file of the consumer before the end of the 20-day
period beginning on the date on which the consumer
reporting agency receives a notice of an appeal from
the consumer.
``(B) Notice of appeal to furnisher; information
regarding dispute provided by the consumer.--
``(i) In general.--Before the end of the
period of 3 business days beginning on the date
on which a consumer reporting agency receives a
notice of appeal, the consumer reporting agency
shall provide notice of the appeal, including
all information relating to the specific appeal
that the consumer reporting agency has received
from the consumer, to any person who provided
any information in dispute.
``(ii) Provision of additional information
regarding the dispute.--If the consumer
reporting agency receives additional
information from the consumer after the agency
provides the notice required under clause (i)
and before the end of the 20-day period
described in subparagraph (A), the consumer
reporting agency shall, not later than 3
business days after receiving such information,
provide such information to any person who
provided the information in dispute and shall
have an additional 10 business days to complete
the appeal review.
``(C) Minimum standards for appeals employees.--
``(i) Designation.--Upon receipt of a
notice of appeal under paragraph (1), a
consumer reporting agency shall designate one
or more specific employees who--
``(I) shall be assigned an employee
reference number or other employee
identifier that can be used by the
consumer to discuss the appeal with the
specific individuals handling the
appeal;
``(II) shall have direct authority
to resolve the dispute that is the
subject of the notice of appeal from
the review stage to its completion;
``(III) shall meet minimum training
and ongoing certification requirements
at regular intervals, as established by
the Bureau;
``(IV) shall be located within the
United States;
``(V) may not have been involved in
the reinvestigation conducted or
terminated pursuant to subsection (a);
and
``(VI) may not be subject to any
requirements linking incentives,
including promotion, to the number of
appeals processed within a certain time
period.
``(ii) Requirements.--Such employees shall
conduct a robust review of the appeal and make
a determination regarding the accuracy and
completeness of the disputed information by--
``(I) conducting an independent
analysis, separate from any
investigation by a reseller or person
who provided the disputed information,
and separate from any prior
reinvestigation conducted by the
consumer reporting agency of the
disputed information;
``(II) verifying that the
personally identifiable information of
the consumer submitting the dispute
matches the personally identifiable
information contained on the consumer's
file;
``(III) analyzing the notice of
appeal and all information, including
any substantiating documents, provided
by the consumer with the notice of
appeal;
``(IV) evaluating the validity of
any information submitted by any person
that was used by the consumer reporting
agency in the reinvestigation of the
initial dispute;
``(V) verifying that the consumer
reporting agency has a record of the
information being disputed; and
``(VI) applying any additional
factors or investigative processes, as
specified by the Bureau.
``(D) Notice of appeal results.--Not later than 5
days after the end of the 20-day period described under
subparagraph (A) (or the 10-day extension period, as
applicable) the consumer reporting agency shall provide
the consumer with written notice of the results of the
appeal by postal mail or, if requested by the consumer,
by other means. The contents of such notice shall
include--
``(i) a statement that the appeal is
completed and the date on which it was
completed, the results of the appeal, and the
specific reasons supporting the results of the
appeal;
``(ii) a copy of all information relating
to the consumer that was used as a basis for
deciding the results of the appeal;
``(iii) a consumer report that is based
upon the consumer's file as that file may have
been revised as a result of the appeal;
``(iv) a description of the procedure used
to determine the accuracy and completeness of
the information, including the business name,
telephone number, mailing address, and Internet
website address (if applicable) of any person
who provided information that was contacted in
connection with such information, if reasonably
available;
``(v) information describing that the
consumer may submit a statement, without
charge, disputing the accuracy or completeness
of information in the consumer's file that was
the subject of an appeal under this subsection
by submitting a statement directly to each
consumer reporting agency that received the
information;
``(vi) a description of the consumer's
rights pursuant to subsection (d) (relating to
furnishing notifications to certain users of
consumer reports); and
``(vii) any other information, as
determined by the Bureau.
``(E) No excuse for failure to conduct appeal.--A
consumer reporting agency may not refuse to conduct a
review of an appeal under this subsection because the
agency determines that the notice of appeal was
submitted by an authorized third party, unless the
agency has clear and convincing evidence that the third
party is not authorized to submit the notice of appeal
on the consumer's behalf. If the consumer reporting
agency refuses to conduct a review of the appeal for
these reasons, it shall provide a clear and conspicuous
written notice to the consumer explaining the reasons
for the refusal and describing any information the
consumer is required to provide for the agency to
conduct a review of the appeal.''.
(b) Appeals of Investigations Conducted by Furnishers of
Information.--Section 623(a) of the Fair Credit Reporting Act (15
U.S.C. 1681s-2(a)) is amended by adding at the end the following new
paragraph:
``(10) Duty of furnishers of information upon notice of
appeal of investigation.--
``(A) In general.--Within 120 days of the date of
receipt of the results of an investigation conducted
under paragraph (8)(E), a consumer may, free of charge,
appeal such results by submitting a notice of appeal to
the person who provided the information in the dispute
to a consumer reporting agency (hereafter in this
paragraph referred to as the `furnisher').
``(B) Notice of appeal.--A notice of appeal
described in subparagraph (A) may be submitted in
writing, through a toll-free telephone number, or by
other electronic means established by the furnisher,
and--
``(i) shall identify the information
contained in the consumer's file that is the
subject of the appeal;
``(ii) shall describe the specific reasons
for submitting the notice of appeal; and
``(iii) may include any information,
including substantiating documents, the
consumer believes is relevant to the appeal.
``(C) Furnisher actions.--Upon receipt of such
notice of appeal, the furnisher shall--
``(i) before the end of the period of 3
business days beginning on the date on which
the furnisher receives the notice of appeal,
notify each consumer reporting agency to which
the person furnished such information a
statement identifying the items of information
that a consumer is appealing; and
``(ii) notify the consumer confirming the
receipt of the consumer's notice of appeal,
including an approximate date when the
consumer's appeal will be completed, the
process and procedures by which a review of the
appeal will be conducted, and the specific
individual designated by the consumer reporting
agency who, upon the request of the consumer,
may discuss the substance and status of the
appeal.
``(D) Furnisher requirements upon receipt of notice
of appeal.--Not later than 20 days after receiving a
notice of appeal, the furnisher shall determine whether
the item of information being disputed by the consumer
is inaccurate, incomplete, or cannot be verified, and
shall notify the consumer reporting agency of the
determination. If the furnisher cannot verify the
accuracy or completeness of the disputed information,
the furnisher shall, before the end of the 20-day
period beginning on the date on which the furnisher
receives notice of an appeal from the consumer, submit
instructions to the consumer reporting agency that the
item of information being disputed by the consumer
should be deleted from the file of the consumer.
``(E) Minimum standards for appeals employees.--
Upon receipt of a notice of appeal under subparagraph
(A), a furnisher shall designate one or more specific
employees who--
``(i) shall be assigned an employee
reference number or other employee identifier
that can be used by the consumer to discuss the
appeal with the specific individuals handling
the appeal;
``(ii) shall have direct authority to
resolve the dispute that is the subject of the
notice of appeal on behalf of the furnisher
from the review stage to its completion;
``(iii) shall meet minimum training and
ongoing certification requirements at regular
intervals, as established by the Bureau;
``(iv) may not have been involved in an
investigation conducted pursuant to paragraph
(8); and
``(v) may not be subject to any
requirements linking incentives, including
promotion, to the number of appeals processed
within a certain time period.
``(F) Requirements for appeals process.--Such
employees shall conduct a robust review of the appeal
and make a determination regarding the accuracy and
completeness of the disputed information by--
``(i) conducting an independent analysis,
separate from any reinvestigation by a reseller
or consumer reporting agency, of the disputed
information;
``(ii) verifying that the personally
identifiable information related to the dispute
is accurate and complete;
``(iii) analyzing the notice of appeal and
all information, including substantiating
documents, provided by the consumer with the
notice of appeal;
``(iv) evaluating the validity of any
information submitted by any person that was
used by the furnisher in the initial
investigation into the dispute;
``(v) verifying that the information being
disputed relates to the consumer in whose file
the information is located;
``(vi) verifying that the furnisher has a
record of the information being disputed; and
``(vii) applying any additional factors or
investigative processes, as specified by the
Bureau.
``(G) Extension of review period.--If a consumer
submits additional information related to the appeal
after the period of 3 business days described in
subparagraph (C)(i) and before the end of the 20-day
period described in subparagraph (D), the furnisher
shall have an additional 10 business days to complete
the review of the appeal.
``(H) Notice of appeal results.--Not later than 5
days after the end of the 20-day period described in
subparagraph (D) (or the 10-day extension described
under subparagraph (G), as applicable) the furnisher
shall provide the consumer with written notice of the
results of the appeal by mail or, if requested by the
consumer, by other means. The contents of such notice
shall include--
``(i) a statement that the appeal is
completed and the date on which it was
completed, the results of the appeal, and the
specific reasons supporting the results of the
appeal;
``(ii) a copy of all information relating
to the consumer that was used as a basis for
deciding the results of the appeal;
``(iii) if the appeal results in any change
to the consumer report, a notification that the
consumer shall receive a copy, free of charge,
of a revised consumer report (based upon the
consumer's file as that file was changed as a
result of the appeal) and a credit score or
educational credit score (if applicable) from
each consumer reporting agency that had been
furnished incorrect information;
``(iv) a description of the procedure used
to determine the accuracy and completeness of
the information, including the business name,
telephone number, mailing address, and Internet
website address (if applicable), of any person
who provided information that was contacted in
connection with such information, if reasonably
available;
``(v) information describing that the
consumer may submit a statement, without
charge, disputing the accuracy or completeness
of information in the consumer's file that was
the subject of an appeal under this paragraph
by submitting a statement directly to each
consumer reporting agency that received the
information; and
``(vi) a notification that the consumer may
request the furnisher to submit to each
consumer reporting agency the consumer's
request to furnish notifications pursuant to
section 611(d) (relating to furnishing
notifications to certain users of consumer
reports).''.
(c) Technical Amendment.--Section 623(a)(8)(A) of the Fair Credit
Reporting Act (15 U.S.C. 1681s-2(a)(8)(A)) is amended by striking
``reinvestigate'' and inserting ``investigate''.
(d) Conforming Amendments.--Section 609 of the Fair Credit
Reporting Act (15 U.S.C. 1681g) is amended--
(1) in subsection (c)--
(A) by striking ``Commission'' and inserting
``Bureau'' each place that term appears;
(B) in the subsection heading, by striking ``Rights
to Obtain and Dispute Information in Consumer Reports
and to Obtain Credit Scores'' and inserting ``Key
Consumer Reporting Rights''; and
(C) in paragraph (1)--
(i) in the heading, by striking
``Commission'' and inserting ``Bureau'';
(ii) in subparagraph (B)--
(I) in clause (ii), by striking ``a
consumer report without charge under
section 612'' and inserting ``consumer
reports and credit scores or
educational credit scores (as
applicable) without charge under
section 612'';
(II) in clause (iii), by inserting
``or section 623'' after ``section
611'';
(III) by striking clauses (iv) and
(vi);
(IV) by inserting after clause
(iii) the following new clause:
``(iv) the right of a consumer to appeal a
determination of a reinvestigation conducted by
a consumer reporting agency under section
611(i) or an investigation conducted by a
furnisher of information under section
623(a)(10);''; and
(V) by adding at the end the
following new clause:
``(vi) the method and circumstances under
which consumers can obtain a 1-year fraud
alert, 7-year fraud alert, active duty alert,
or security freeze as described in section 605A
through a consumer reporting agency described
under section 603(p).'';
(iii) in subparagraph (C) (as amended by
subparagraph (A)) by inserting ``and the
Commission'' after ``Bureau''; and
(iv) by adding at the end the following new
subparagraph:
``(D) Publication of summary rights.--A consumer
reporting agency described under subsection (p) or (x)
of section 603 shall display in a clear and conspicuous
manner, including on the Internet website of the
consumer reporting agency, the summary of rights
prepared by the Bureau under this paragraph.''; and
(2) in subsection (d), by inserting ``Bureau and the''
before ``Commission''.
SEC. 106. REVISED CONSUMER REPORTS.
Section 611 of the Fair Credit Reporting Act (15 U.S.C. 1681i), as
amended by section 105(a)(2), is further amended by adding at the end
the following new subsection:
``(j) Requirement To Send Revised Consumer Report to Consumer.--
Upon receiving a notice described in section 623(a)(8)(E)(iv), each
consumer reporting agency shall send to the consumer a revised consumer
report and credit score or education credit score (if applicable) based
upon the consumer's file as that file was changed as a result of the
investigation.''.
SEC. 107. INDICATION OF DISPUTE BY CONSUMERS AND USE OF DISPUTED
INFORMATION.
Section 605(f) of the Fair Credit Reporting Act (15 U.S.C.
1681c(f)) is amended to read as follows:
``(f) Indication of Dispute.--
``(1) In general.--A consumer reporting agency shall
include in any consumer report based on the consumer's file a
notation identifying any item of information that is currently
in dispute by the consumer if--
``(A) a consumer disputes the completeness or
accuracy of any item of information contained in a
consumer's file pursuant to section 611(a)(1);
``(B) a consumer files with a consumer reporting
agency an appeal of a reinvestigation pursuant to
section 611(i); or
``(C) the consumer reporting agency is notified by
a person that furnished any items of information that
are currently in dispute by the consumer that--
``(i) a consumer disputes the completeness
or accuracy of any information furnished by a
person to any consumer reporting agency
pursuant to paragraph (3) or (8) of section
623(a); or
``(ii) a consumer submits a notice of
appeal under section 623(a)(10).
``(2) Opt out.--A consumer may submit a request to a
consumer reporting agency or a person who furnished the
information in dispute, as applicable, to have the notation
described in paragraph (1) omitted from the consumer report.
Upon receipt of such a request--
``(A) by a consumer reporting agency, such agency
shall remove the notation within 1 business day; and
``(B) by a person who furnished the information in
dispute, such person shall submit such request to each
consumer reporting agency to which the person furnished
such information within 1 business day and such agency
shall remove the notation within 1 business day of
receipt of such request.''.
SEC. 108. ACCURACY AND COMPLETENESS REPORT DUTIES FOR CONSUMER
REPORTING AGENCIES AND FURNISHERS.
Section 607(b) of the Fair Credit Reporting Act (15 U.S.C. 1681e)
is amended to read as follows:
``(b) Accuracy and Completeness of Report.--
``(1) In general.--In preparing a consumer report, a
consumer reporting agency shall maintain reasonable procedures
to ensure maximum possible accuracy and completeness of the
information concerning the individual to whom the consumer
report relates.
``(2) Bureau rule to assure maximum possible accuracy and
completeness with credit reporting practices.--
``(A) Rule.--Not later than 18 months after the
date of enactment of this subsection, the Bureau shall
issue a final rule establishing the procedures
described in paragraph (1).
``(B) Requirements.--In formulating the rule
required under subparagraph (A), the Bureau shall--
``(i) develop standards for matching the
personally identifiable information included in
the consumer's file with the personally
identifiable information furnished by the
person who provided the information to the
consumer reporting agency (hereafter in this
subsection referred to as the `furnisher'),
including the full name of a consumer, the date
of birth of a consumer, the full social
security number of a consumer, and any other
information that the Bureau determines would
aid in assuring maximum possible accuracy and
completeness of such consumer reports;
``(ii) establish processes for a consumer
reporting agency to monitor the integrity of
the data provided by furnishers and the
compliance of furnishers with the requirements
of this title;
``(iii) establish processes for a consumer
reporting agency to regularly reconcile data
relating to accounts in collection, including
those that have not been paid in full, by
specifying the circumstances under which the
consumer reporting agency shall remove or
suppress negative or adverse information from a
consumer's file that has not been updated by a
furnisher who is also a debt collector (as
defined in section 803 of the Fair Debt
Collection Practices Act) within the time
period established by the Bureau;
``(iv) establish procedures to require each
consumer reporting agency to review and monitor
the quality of information received from any
source, including information from public
records, by regularly and on an ongoing basis
comparing the information received to the
information available from the original source
and ensuring that the information received is
the most current information;
``(v) develop standards and procedures for
consumer reporting agencies to identify
furnishers that repeatedly fail to provide
accurate and complete information, to take
corrective action against such furnishers, and
to reject information submitted by such
furnishers;
``(vi) develop standards and procedures for
consumer reporting agencies to adopt regarding
collection of public record data, including
standards and procedures to consider the
ultimate data source, how the public record
information is filed and its availability and
accessibility, and whether information relating
to the satisfaction of judgments or other
updates to the public record are available on a
reasonably timely basis from a particular
source; and
``(vii) establish any other factors,
procedures, or processes determined by the
Bureau to be necessary to assist consumer
reporting agencies in achieving maximum
possible accuracy and completeness of the
information in consumer reports.
``(3) Corrective action for furnishers that repeatedly
furnish inaccurate or incomplete information.--Upon identifying
a furnisher that repeatedly fails to furnish accurate,
complete, or verifiable information to consumer reporting
agencies, the Bureau shall--
``(A) ensure the prompt removal of any adverse
information relating to a consumer's accounts submitted
by such furnisher; and
``(B) take corrective action, which may include--
``(i) mandatory revised training and
training materials for the staff of the
furnisher regarding the furnishing of accurate
and complete information;
``(ii) sharing industry best practices and
procedures regarding accuracy and completeness;
or
``(iii) temporarily prohibiting a furnisher
from providing information to a consumer
reporting agency.''.
SEC. 109. INCLUSION OF PUBLIC RECORD DATA SOURCES IN CONSUMER REPORTS.
Section 605(d) of the Fair Credit Reporting Act (15 U.S.C.
1681c(d)) is amended by adding at the end the following:
``(3) Public record data source.--Any consumer reporting
agency that furnishes a consumer report that contains public
record data shall also include in such report the source from
which that data was obtained, including the particular court,
if any, and the date that the data was initially reported or
publicized.''.
SEC. 110. INJUNCTIVE RELIEF FOR VICTIMS.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.) is amended--
(1) in section 616--
(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
new subsection:
``(c) Injunctive Relief.--In addition to any other remedy set forth
in this section, a court may award injunctive relief to require
compliance with the requirements imposed under this title with respect
to any consumer. In the event of any successful action for injunctive
relief under this subsection, the court may award to the prevailing
party costs and reasonable attorney fees (as determined by the court)
incurred during the action by such party.''; and
(2) in section 617--
(A) in subsection (a), by amending the subsection
heading to read as follows: ``Damages'';
(B) by redesignating subsection (b) as subsection
(c); and
(C) by inserting after subsection (a) the following
new subsection:
``(b) Injunctive Relief.--In addition to any other remedy set forth
in this section, a court may award injunctive relief to require
compliance with the requirements imposed under this title with respect
to any consumer. In the event of any successful action for injunctive
relief under this subsection, the court may award to the prevailing
party costs and reasonable attorney fees (as determined by the court)
incurred during the action by such party.''.
(b) Enforcement by Federal Trade Commission.--Section 621(a)(2)(A)
of the Fair Credit Reporting Act (15 U.S.C. 1681s(a)(2)(A)) is
amended--
(1) by amending the subparagraph heading to read as
follows: ``Negligent, willful, or knowing violations''; and
(2) by inserting ``negligent, willful, or'' before
``knowing''.
TITLE II--FREE CREDIT SCORES FOR CONSUMERS
SEC. 201. DEFINITIONS.
(a) In General.--Section 603 of the Fair Credit Reporting Act (15
U.S.C. 1681a) is amended by adding at the end the following new
subsection:
``(bb) Credit Score and Educational Credit Score Definitions.--
``(1) Credit score.--The term `credit score' 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 or extends credit to predict the likelihood of certain
credit behaviors, including default, as determined by the
Bureau.
``(2) Educational credit score.--The term `educational
credit score' means a numerical value or categorization derived
from a statistical tool or modeling system based upon
information from a consumer report that assists consumers in
understanding how a lender or creditor may view the consumer's
creditworthiness in deciding whether to make a loan or extend
credit to that consumer.
``(3) Key factors.--The term `key factors' means any
relevant elements or reasons affecting the credit score for the
particular individual, listed in the order of importance based
on the effect of each element or reason on the credit score or
educational credit score.
``(4) Credit scoring model.--The term `credit scoring
model' means a scoring algorithm, formula, model, program, or
mechanism used to generate a credit score or an educational
credit score.''.
(b) Conforming Amendments.--The Fair Credit Reporting Act (15
U.S.C. 1681 et seq.) is amended--
(1) in section 605(d)(2), by striking ``(as defined in
section 609(f)(2)(B))''; and
(2) in section 615--
(A) by striking ``as defined in section
609(f)(2)(A)'' each place that term appears; and
(B) in subsection (a)(2)(B), by striking ``set
forth in subparagraphs (B) through (E) of section
609(f)(1)'' and inserting ``with respect to a credit
score described in section 609(f)(2), if available''.
SEC. 202. CONSUMER INFORMATION ON CALCULATION OF SCORES.
Section 609(f) of the Fair Credit Reporting Act (15 U.S.C.
1681g(f)) is amended to read as follows:
``(f) Disclosure of Credit Score and Educational Credit Score by
Consumer Reporting Agencies.--
``(1) In general.--Upon the request of a consumer for a
credit score or educational credit score, a consumer reporting
agency shall supply to the consumer a statement--
``(A) containing--
``(i) a current credit score at the time of
the request generated using a commonly used
credit scoring model to generate credit scores,
subject to regulations of the Bureau;
``(ii) an educational credit score at the
time of the request, if it is not practicable
to generate such a credit score, as determined
by the Bureau; or
``(iii) an explanation that the consumer's
file does not have sufficient information from
which to generate such a credit score or
educational credit score; and
``(B) with respect to each previous credit score in
the file of the consumer--
``(i) the date on which the credit score
was generated;
``(ii) the name of any entity that the
credit score was provided to; and
``(iii) the credit score itself.
``(2) Requirements.--A statement provided under clause (i)
or (ii) of paragraph (1)(A) shall include--
``(A) a minimum of four key factors, if available,
that adversely affected the credit score or educational
credit score, except that if one of the key factors
consists of the number of enquiries made with respect
to a consumer report, that factor shall be provided to
the consumer in addition to the factors required by
this subparagraph;
``(B) to the extent possible, specific actions a
consumer could take with respect to each key factor
listed in subparagraph (A) to improve the consumer's
credit score or educational credit score;
``(C) a minimum of four key factors, if available,
that positively affected the credit score or
educational credit score;
``(D) the range of possible credit scores or
educational credit scores under the credit scoring
model used;
``(E) the distribution of credit scores or
educational credit scores among consumers who are
scored under the same credit scoring model by the
consumer reporting agency, and using the same scale as
that of the score that is provided to a creditor or
consumers--
``(i) in the form of a bar graph containing
a minimum of six bars that illustrates the
percentage of consumers with credit scores or
educational credit scores within the range of
scores represented by each bar; or
``(ii) by another clear and readily
understandable graphical depiction, statement,
or illustration comparing the consumer's credit
score or educational credit score to the scores
of other consumers, as determined by the
Bureau;
``(F) the date on which the credit score or
educational credit score was created; and
``(G) the name of the person that developed the
credit scoring model on which the credit score or
educational credit score was based.
``(3) Applicability to certain uses.--This subsection shall
not be construed so as to compel a consumer reporting agency
to--
``(A) develop or disclose a credit score if the
agency does not distribute credit scores used by a
person who makes or arranges a loan or extends credit
to predict the likelihood of certain credit behaviors;
or
``(B) develop or disclose an educational credit
score if the agency does not develop educational credit
scores that assist in understanding the general credit
behavior of a consumer and predicting the future credit
behavior of the consumer.
``(4) Maintenance of credit scores.--
``(A) In general.--All consumer reporting agencies
shall maintain in the consumer's file credit scores
relating to the consumer for a period of 2 years from
the date on which such information is generated.
``(B) Disclosure only to consumers.--A past credit
score maintained in a consumer's file pursuant to
subparagraph (A) may only be provided to the consumer
to which the credit score relates and may not be
included in a consumer report or used as a factor in
generating a credit score or educational credit score.
``(C) Removal of past credit scores.--A past credit
score maintained in a consumer's file pursuant to
subparagraph (A) shall be removed from the consumer's
file after the end of the 2-year period described under
subparagraph (A).''.
SEC. 203. DISCLOSURES RELATING TO CREDIT SCORES AND EDUCATIONAL CREDIT
SCORES.
Section 609(f) of the Fair Credit Reporting Act (15 U.S.C.
1681g(f)), as amended by section 202, is further amended by adding at
the end the following new paragraphs:
``(5) Website disclaimer.--A consumer reporting agency that
generates or provides credit scores or educational credit
scores shall clearly and conspicuously display on the home page
of the agency's Internet website, and as part of any
application, solicitation, or marketing material or media
providing information related to a credit score or educational
credit score, the following notice, in boldface type of 18-
point font or larger and in a text box with boldface outer
borders:
```CREDIT SCORE DISCLAIMER.
```There is no ``one'' credit score. There are many scoring
formulas derived from a wide variety of models available to a consumer
and used by lenders and creditors. Different lenders and creditors use
different scoring formulas to determine whether to extend credit or
make a loan to you, and the terms of the credit or loan. An educational
credit score is not a credit score that a person who makes a loan or
extends credit to you is likely to use. Educational credit scores are
merely intended to be used as an educational tool to help consumers
understand how the information contained in a consumer report may
affect the terms and conditions of a loan or extension of credit that
may be available to a consumer. Lenders and creditors may also rely on
information not contained in your consumer report and not reflected in
the calculation of your credit score.'.
``(6) Additional requirements for educational credit
scores.--
``(A) Disclaimer.--If an educational credit score
is provided pursuant to paragraph (1), a consumer
reporting agency shall clearly and conspicuously
include in a prominent location on the statement, in
boldface type of 18-point font or larger, and in a text
box with boldface outer borders, the following notice:
```EDUCATIONAL CREDIT SCORE DISCLAIMER.
```The educational credit score provided to you is not a credit
score that a lender or creditor is likely to use to make a loan or
extend credit to you. There are many different credit scores derived
from a wide variety of models used by lenders and creditors. An
educational credit score is merely an educational tool. It is intended
to provide consumers with a basic understanding of how the information
contained in a consumer report may affect the terms and conditions of
credit that are available. The credit scores you receive directly from
different lenders and creditors may not be the same as an educational
credit score. There are a number of reasons for this:
```(1) Each company may use a different formula for
calculating credit scores and the differences in the formulas
may lead to differences in your scores.
```(2) Companies may produce scores that give results on
different scales.
```(3) Not all lenders or creditors report to every
consumer reporting agency, and therefore the information
contained in your consumer report that the consumer reporting
agencies use to calculate your educational credit score may
differ among agencies.'.
``(B) Prohibition on misleading representations.--A
consumer reporting agency may not refer to an
educational credit score as a credit score in any
application, solicitation, marketing, or other
informational materials or media.
``(7) Modification of disclaimers.--The Bureau may modify
the content, format, and manner of the disclaimers required
under paragraphs (5) and (6), if warranted, after conducting
consumer testing or research.''.
SEC. 204. FREE CREDIT SCORE DISCLOSURES AND CONSUMER REPORTS.
(a) In General.--Section 612 of the Fair Credit Reporting Act (15
U.S.C. 1681j) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) in subparagraph (A), by inserting after
``section 609'' the following: ``(including the
disclosure of a credit score or educational
credit score under subsection (f) of such
section)''; and
(ii) in subparagraph (C)--
(I) by striking ``Commission'' and
inserting ``Bureau''; and
(II) by inserting ``, credit
scores, and educational credit scores
(as applicable)'' after ``consumer
reports'' each place that term appears;
(B) in paragraph (2)--
(i) by striking ``15 days'' and inserting
``3 business days''; and
(ii) by inserting ``, credit score, or
educational credit score'' after ``consumer
report'';
(C) in paragraph (3), by inserting ``, credit
score, or educational credit score'' after ``consumer
report''; and
(D) in paragraph (4), by inserting ``, credit
scores, or educational credit scores'' after ``consumer
reports'';
(2) in subsection (b), by inserting ``(including the
disclosure of a credit score or educational credit score, as
applicable, under subsection (f) of such section)'' after the
first instance of ``section 609'';
(3) in subsection (c)--
(A) by inserting ``(including the disclosure of a
credit score or educational credit score under
subsection (f) of such section)'' after ``pursuant to
section 609'';
(B) in paragraph (2), by striking ``; or'' and
inserting a semicolon;
(C) in paragraph (3), by striking the period at the
end and inserting a semicolon; and
(D) by adding at the end the following new
paragraphs:
``(4) has disputed information, or submitted an appeal of
an investigation or reinvestigation of such information, under
section 611 or 623, regardless of whether the consumer has
already received a credit report, credit score, or educational
credit score under section 611 or 623; or
``(5) has had information that was previously deleted under
section 611(a)(5) reinserted into the consumer's file,
regardless of whether the consumer has already received a
credit report, credit score, or educational credit score under
such section.'';
(4) in subsection (d), by inserting ``(including the
disclosure of a credit score or educational credit score under
subsection (f) of such section)'' after ``section 609'';
(5) in subsection (f)(1)--
(A) by striking ``reasonable charge'' and all that
follows through ``section 609'' and inserting
``reasonable charge on a consumer for providing a
consumer report to a consumer'';
(B) by striking subparagraph (B);
(C) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively (and conforming
the margins accordingly); and
(D) in subparagraph (B) (as so redesignated), by
striking ``disclosure; and'' and inserting
``disclosure.''; and
(6) by adding at the end the following new subsections:
``(h) Centralized Source for Obtaining Free Copy of Consumer Report
and Scores.--
``(1) Nationwide consumer reporting agencies.--
``(A) In general.--Not later than 180 days after
the date of enactment of this subsection, each consumer
reporting agency described under subsection (p) of
section 603 shall prominently display on the home page
of the agency's website--
``(i) a hyperlink labeled `Get Your Free
Annual Credit Reports along with either your
Credit Scores or Educational Credit Scores
provided for under Federal Law' or
substantially similar text, as determined by
the Bureau; and
``(ii) a disclosure titled `Consumer's
Right to Free Credit Scores, Educational Credit
Scores, and Reports under Federal Law' or
substantially similar text, as determined by
the Bureau that includes the following
statement:
```All consumers are entitled to obtain a free copy of their
consumer report and credit score or educational credit score annually
from each of the nationwide consumer reporting agencies. Under Federal
law, a consumer is entitled to obtain additional free copies of their
consumer reports, along with a copy of either the consumer's credit
score or educational credit score (under certain circumstances),
including:
```(1) When a consumer is unemployed and intends to apply
for employment within 60 days.
```(2) When a consumer is a recipient of public welfare
assistance.
```(3) When a consumer has a reasonable belief that their
report contains inaccuracies as a result of fraud.
```(4) When a consumer asserts in good faith a suspicion
that the consumer has been or is about to become a victim of
identity theft, fraud, or a related crime, or harmed by the
unauthorized disclosure of the consumer's financial or
personally identifiable information.
```(5) When a consumer files a dispute or an appeal of the
results of a dispute with a consumer reporting agency or a
person who furnished information to the consumer reporting
agency regarding the accuracy or completeness of the
information contained on their report.
```(6) After a furnisher of information discovers it has
furnished inaccurate or incomplete information to a consumer
reporting agency, and the furnisher notifies the agency of the
error.
```(7) After an adverse action is taken against a consumer
or a consumer receives a risk-based pricing notice.
```(8) When a mortgage lender, private educational lender,
indirect auto lender, or motor vehicle lender obtains and uses
a consumer's reports or scores for underwriting purposes.'.
``(B) Hyperlink requirements.--The hyperlink
described in subparagraph (A)(i) shall be prominently
located on the top of the home page and should link
directly to the website of the centralized source
established pursuant to section 211(d) of the Fair and
Accurate Credit Transactions Act of 2003 (15 U.S.C.
1681j note).
``(C) Modifications.--The Bureau may modify the
disclosure described in subparagraph (A)(ii) as
necessary to include other circumstances under which a
consumer has the right to receive a free consumer
report, credit score, or educational credit score.
``(2) Nationwide specialty consumer reporting agencies.--
``(A) In general.--Not later than 180 days after
the date of enactment of this subsection, each
nationwide specialty consumer reporting agency shall
prominently display on the Internet home webpage of the
agency a disclosure titled `Consumer's Right to Free
Consumer Reports and Credit Score or Educational Credit
Score (as applicable) under Federal Law'. Such
disclosure shall include the following statement:
```Upon request, all consumers are entitled to obtain a free copy
of their consumer report and credit score or educational credit score
(as applicable) during any 12-month period from each of the nationwide
specialty consumer reporting agencies. Federal law also provides
further circumstances under which a consumer is entitled to obtain
additional free copies of their consumer report and credit score or
educational credit score (as applicable) including:
```(1) When a consumer is unemployed and intends to apply
for employment within 60 days.
```(2) When a consumer is a recipient of public welfare
assistance.
```(3) When a consumer has a reasonable belief that their
report contains inaccuracies as a result of fraud.
```(4) When a consumer files a dispute or an appeal of the
results of a dispute with a consumer reporting agency or a
person who furnished information to the consumer reporting
agency regarding the accuracy or completeness of the
information contained on their report.
```(5) After a furnisher of information discovers it has
furnished inaccurate or incomplete information to a consumer
reporting agency, and the furnisher notifies the agency of the
error.
```(6) After an adverse action is taken against a consumer
or a consumer receives a risk-based pricing notice.
```(7) When a mortgage lender, private educational lender,
indirect auto lender, or motor vehicle lender obtains and uses
a consumer's reports or scores for underwriting purposes.'.
``(B) Modifications.--The Bureau may modify the
disclosure described in subparagraph (A) as necessary
to include other circumstances under which a consumer
has the right to receive a free consumer report and
credit score or educational credit score (as
applicable).
``(C) Toll-free telephone access.--The information
described in this paragraph shall also be made
available via a toll-free telephone number. Such number
shall be prominently displayed on the home page of the
website of each nationwide specialty consumer reporting
agency. Each of the circumstances under which a
consumer may obtain a free consumer report and credit
score or educational credit score (as applicable) shall
be presented in an easily understandable format and
consumers shall be directed to an individual who is a
customer service representative not later than 2
minutes after the initial phone connection is made by
the consumer. Information provided through such
telephone number shall comply with the requirements of
section 633.
``(D) Online consumer reports; exemption.--Upon
receipt of a request by a consumer for a consumer
report, each nationwide specialty consumer reporting
agency shall provide access to such report
electronically on the Internet website described in
section 611(h).
``(i) Automatic Provision of Free Consumer Reports and Credit
Scores or Educational Credit Scores.--A consumer reporting agency shall
provide to a consumer a free copy of the file and credit score or
educational credit score of the consumer who--
``(1) obtains a 1-year fraud alert, 7-year fraud alert,
active duty alert, or security freeze as described in section
605A; or
``(2) has disputed information, or submitted an appeal of
an investigation or reinvestigation of such information, under
section 611 or 623.''.
(b) Technical Amendment.--Section 615(h)(7) of such Act (15 U.S.C.
1681m(h)(7)) is amended by striking ``section'' each place such term
appears and inserting ``subsection''.
SEC. 205. PROVISION OF CONSUMER REPORTS AND CREDIT SCORES BY PRIVATE
EDUCATIONAL LENDERS.
Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g) is
amended by adding at the end the following new subsection:
``(h) Disclosure of Consumer Reports and Credit Scores by Private
Educational Lenders.--
``(1) In general.--If a private educational lender obtains
a copy of any consumer reports or credit scores and uses such
reports or scores in connection with an application of a
consumer for a private education loan, the private educational
lender shall provide to the consumer, not later than 3 business
days after obtaining such reports or scores and before the date
on which the consumer enters into a loan agreement with the
private educational lender, a copy of any such reports or
scores, along with the statement described under subsection
(f)(2).
``(2) Costs.--None of the costs to the private educational
lender associated with procuring consumer reports or credit
scores under this subsection may be charged, directly or
indirectly, to the consumer.
``(3) Rule of construction.--Nothing in this subsection
shall be construed to eliminate any requirement for creditors
and lenders to provide credit score disclosures, including the
statement described under subsection (f)(2), to consumers as
part of an adverse action or risk-based pricing notice.''.
SEC. 206. PROVISION OF CONSUMER REPORTS AND CREDIT SCORES BY MOTOR
VEHICLE LENDERS OR INDIRECT AUTO LENDERS.
Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g), as
amended by section 205, is further amended by adding at the end the
following new subsection:
``(i) Disclosure of Consumer Reports and Credit Scores Used by
Motor Vehicle Lenders or Indirect Auto Lenders.--
``(1) In general.--If a motor vehicle lender or indirect
auto lender obtains a copy of any consumer reports or credit
scores and uses such reports or scores in connection with an
application of a consumer for a motor vehicle loan or lease,
the motor vehicle lender or indirect auto lender shall provide
to the consumer a document, separate from the consumer's lease
or purchase agreement and before the consumer enters into a
lease or purchase agreement, disclosing any consumer reports
and credit scores, including the statement described in
subsection (f)(2), used by the lender to determine whether to
extend credit to the consumer.
``(2) Costs.--None of the costs to the motor vehicle lender
or indirect auto lender associated with procuring consumer
reports or credit scores under this subsection may be charged,
directly or indirectly, to the consumer.
``(3) Rule of construction.--Nothing in this subsection
shall be construed to eliminate any requirement for creditors
and lenders to provide credit score disclosures, including the
statement described under subsection (f)(2), to consumers as
part of an adverse action or risk-based pricing notice.
``(4) Definitions.--
``(A) Indirect auto lender.--The term `indirect
auto lender' has the meaning given the term by the
Bureau, and shall include a person extending a loan
made with respect to a car, boat, motorcycle,
recreational vehicle, or other similar vehicle used
primarily for personal or household purposes.
``(B) Motor vehicle lender.--The term `motor
vehicle lender' has the meaning given the term by the
Board of Governors of the Federal Reserve System, and
shall include a person extending a loan made with
respect to a car, boat, motorcycle, recreational
vehicle, or other similar vehicle used primarily for
personal or household purposes.''.
SEC. 207. PROVISION OF CONSUMER REPORTS AND CREDIT SCORES BY
RESIDENTIAL MORTGAGE LENDERS.
Section 609(g) of the Fair Credit Reporting Act (15 U.S.C.
1681g(g)) is amended--
(1) by redesignating paragraph (2) as paragraph (5);
(2) in paragraph (1)--
(A) by striking ``a consumer credit score'' and
inserting ``any consumer reports or credit scores'';
(B) by striking ``, as defined in subsection
(f),'';
(C) by striking ``the following to the consumer as
soon as reasonably practicable:'' and inserting ``, not
later than 3 business days after using such reports or
scores, a document disclosing any consumer reports and
credit scores used by the lender to determine whether
to extend credit to the consumer along with the
statement described in subsection (f)(2).'';
(D) by striking subparagraphs (A), (B), (C), (E),
and (F);
(E) by redesignating subparagraph (D) as paragraph
(3) (and adjusting the margins accordingly); and
(F) by redesignating subparagraph (G) as paragraph
(4) (and adjusting the margins accordingly);
(3) by inserting before paragraph (3) (as so designated)
the following new paragraph:
``(2) Rule of construction.--Nothing in this subsection
shall be construed to eliminate any requirement for lenders to
provide credit score disclosures, including the statement
described under subsection (f)(2), to consumers as part of an
adverse action or risk-based pricing notice.'';
(4) in paragraph (3) (as so designated), in the quoted
material--
(A) by inserting ``, free of charge,'' after
``disclose to you''; and
(B) by striking ``affecting your credit scores''
and inserting ``affecting your credit score or
scores'';
(5) in paragraph (5) (as so redesignated) by inserting ``or
scores'' after ``credit score'' each place such term appears;
and
(6) by adding at the end the following new paragraphs:
``(6) Actions not required.--This subsection shall not
require any person to disclose any credit score or related
information obtained by the person after a loan has closed.
``(7) No procurement costs.--None of the costs to the
creditor or lender associated with procuring any consumer
reports or scores under this subsection may be charged,
directly or indirectly, to the consumer.''.
TITLE III--STUDENT BORROWER CREDIT IMPROVEMENT ACT
SEC. 301. REMOVAL OF ADVERSE INFORMATION FOR CERTAIN PRIVATE EDUCATION
LOAN BORROWERS.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.), as amended by section 405, is further amended by inserting after
section 605D the following new section:
``Sec. 605E. Credit rehabilitation for distressed private education
loan borrowers
``(a) In General.--A consumer reporting agency may not furnish any
consumer report containing any adverse item of information relating to
a delinquent or defaulted private education loan of a borrower if the
borrower has rehabilitated the borrower's credit with respect to such
loan by making nine on-time monthly payments (in accordance with the
terms and conditions of the borrower's original loan agreement or any
other repayment agreement that antedates the original agreement) during
a period of 10 consecutive months on such loan after the date on which
the delinquency or default occurred.
``(b) Interruption of 10-Month Period for Certain Consumers.--
``(1) Permissible interruption of the 10-month period.--A
borrower may stop making consecutive monthly payments and be
granted a grace period after which the 10-month period
described in subsection (a) shall resume. Such grace period
shall be provided under the following circumstances:
``(A) With respect to a borrower who is a member of
the Armed Forces entitled to incentive pay for the
performance of hazardous duty under section 301 of
title 37, United States Code, hazardous duty pay under
section 351 of such title, or other assignment or
special duty pay under section 352 of such title, the
grace period shall begin on the date on which the
borrower begins such assignment or duty and end on the
date that is 6 months after the completion of such
assignment or duty.
``(B) With respect to a borrower who resides or
works in an area affected by a major disaster or
emergency declared under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act, the grace
period shall begin on the initial date of the incident
period of the major disaster or emergency and end on
the date that is the earlier of--
``(i) 6 months after the date on which the
major disaster or emergency was declared; and
``(ii) the later of--
``(I) 3 months after the date on
which the major disaster or emergency
was declared; and
``(II) the date that the Director
of the Bureau, in consultation with the
Administrator of the Federal Emergency
Management Agency, determines is the
date on which substantially all
provision of assistance by the Federal
Emergency Management Agency under such
major disaster or emergency declaration
has concluded.
``(2) Other circumstances.--
``(A) In general.--The Bureau may allow a borrower
demonstrating hardship to stop making consecutive
monthly payments and be granted a grace period after
which the 10-month period described in subsection (a)
shall resume.
``(B) Borrower demonstrating hardship defined.--In
this paragraph, the term `borrower demonstrating
hardship' means a borrower or a class of borrowers who,
as determined by the Bureau, is facing or has
experienced unusual extenuating life circumstances or
events that result in severe financial or personal
barriers, including homelessness (as defined by the
Secretary of Housing and Urban Development), such that
the borrower or class of borrowers does not have the
capacity to comply with the requirements of subsection
(a).
``(c) Procedures.--The Bureau shall establish procedures to
implement the credit rehabilitation described in this section,
including--
``(1) the manner, content, and form for requesting credit
rehabilitation;
``(2) the method for validating that the borrower is
satisfying the requirements of subsection (a);
``(3) the manner, content, and form for notifying the
private educational loan holder of--
``(A) the borrower's participation in credit
rehabilitation under subsection (a);
``(B) the requirements described in subsection (d);
and
``(C) the restrictions described in subsection (f);
``(4) the manner, content, and form for notifying a
consumer reporting agency of--
``(A) the borrower's participation in credit
rehabilitation under subsection (a); and
``(B) the requirements described in subsection (d);
``(5) the method for verifying whether a borrower qualifies
for the grace period described in subsection (b);
``(6) the manner, content, and form of notifying a consumer
reporting agency and private educational loan holder that a
borrower was granted a grace period.
``(d) Standardized Reporting Codes.--A consumer reporting agency
shall develop standardized reporting codes for use by any private
educational loan holder to identify and report a borrower's status of
making and completing nine on-time monthly payments during a period of
10 consecutive months on a delinquent or defaulted private education
loan, including codes specifying the grace period described in
subsection (b) and any agreement to modify monthly payments. Such codes
shall not appear on any report provided to a third party, and shall be
removed from the consumer's credit report upon the consumer's
completion of the rehabilitation period under this section as soon as
possible, but in no case later than 5 days after such completion.
``(e) Elimination of Barriers to Credit Rehabilitation.--A consumer
report in which a private educational loan holder furnishes the
standardized reporting codes described in subsection (d) to a consumer
reporting agency, or in which a consumer reporting agency includes such
codes, shall be deemed to comply with the requirements for accuracy and
completeness under sections 607(b), 623(a)(1), and 632.
``(f) Prohibition on Civil Actions for Consumers Pursuing
Rehabilitation.--A private educational loan holder may not commence or
proceed with any civil action against a borrower with respect to a
delinquent or defaulted loan during the period of rehabilitation if the
private educational loan holder has been notified, in accordance with
the procedures established by the Bureau pursuant to subsection (c)--
``(1) of such borrower's intent to participate in
rehabilitation;
``(2) that such borrower has satisfied the requirements
under subsection (a); or
``(3) that such borrower was granted a grace period.
``(g) Impact on Statute of Limitations for Prior Debt.--Payments by
a borrower on a private education loan that are made during and after a
period of rehabilitation under this section shall have no effect on the
statute of limitations with respect to payments that were due on such
private education loan before the beginning of the period of
rehabilitation.
``(h) Payment Plans.--If a private educational loan holder enters
into a payment plan with a borrower on a private education loan during
a period of rehabilitation, such payment plan shall be reasonable and
affordable, as determined by the Bureau.
``(i) Rules of Construction.--
``(1) Application to subsequent default or delinquency.--A
borrower who satisfies the requirements under subsection (a)
shall be eligible for additional credit rehabilitation
described in subsection (a) with respect to any subsequent
default or delinquency of the borrower on the rehabilitated
private education loan.
``(2) Interruption of consecutive payment period
requirement.--The grace period described in subsection
(b)(1)(A) shall not apply if any regulation promulgated under
section 987 of title 10, United States Code (commonly known as
the Military Lending Act), or the Servicemembers Civil Relief
Act (50 U.S.C. App. 501 et seq.) allows for a grace period or
other interruption of the 10-month period described in
subsection (a) and such grace period or other interruption is
longer than the period described in subsection (b)(1)(A) or
otherwise provides greater protection or benefit to the
borrower who is a member of the Armed Forces.''.
(b) Table of Contents Amendment.--The table of contents of the Fair
Credit Reporting Act, as amended by section 405, is further amended by
inserting after the item relating to section 605D the following new
item:
``605E. Credit rehabilitation for distressed private education loan
borrowers who demonstrate a history of loan
repayment.''.
(c) Conforming Amendment.--Section 623(a)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681s-2(a)(1)) is amended by striking
subparagraph (E).
SEC. 302. PRIVATE EDUCATION LOAN DEFINITIONS.
Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a), as
amended by section 201(a), is further amended by adding at the end the
following new subsection:
``(cc) Private Education Loan Definitions.--The terms `private
education loan' and `private educational lender' have the meanings
given such terms, respectively, in section 140(a) of the Truth in
Lending Act.''.
TITLE IV--CREDIT RESTORATION FOR VICTIMS OF PREDATORY ACTIVITIES AND
UNFAIR CONSUMER REPORTING PRACTICES
SEC. 401. ADVERSE CREDIT INFORMATION.
(a) In General.--Section 605 of the Fair Credit Reporting Act (15
U.S.C. 1681c), as amended by sections 107, 109, and 201, is further
amended--
(1) in subsection (a)--
(A) by striking ``Except as authorized under
subsection (b), no'' and inserting ``No'';
(B) in paragraph (1), by striking ``10 years'' and
inserting ``7 years'';
(C) in paragraph (2), by striking ``Civil suits,
civil judgments, and records'' and inserting
``Records'';
(D) in paragraph (3), by striking ``seven years''
and inserting ``4 years'';
(E) in paragraph (4), by striking ``seven years''
and inserting ``4 years'';
(F) in paragraph (5)--
(i) by striking ``, other than records of
convictions of crimes''; and
(ii) by striking ``seven years'' and
inserting ``4 years''; and
(G) by adding at the end the following new
paragraphs:
``(9) Civil suits and civil judgments (except as provided
in paragraph (8)) that, from date of entry, antedate the report
by more than 4 years or until the governing statute of
limitations has expired, whichever is the longer period.
``(10) A civil suit or civil judgment--
``(A) brought by a private education loan holder
that, from the date of successful completion of credit
restoration or rehabilitation in accordance with the
requirements of section 605D or 605E, antedates the
report by 45 calendar days; or
``(B) brought by a lender with respect to a covered
residential mortgage loan (as defined in section
605C(b)) that antedates the report by 45 calendar days.
``(11) Records of convictions of crimes which antedate the
report by more than 7 years.
``(12) Any other adverse item of information relating to
the collection of debt that did not arise from a contract or an
agreement to pay by a consumer, including fines, tickets, and
other assessments, as determined by the Bureau, excluding tax
liability.'';
(2) by striking subsection (b) and redesignating
subsections (c) through (h) as subsections (b) through (g),
respectively; and
(3) in subsection (b) (as so redesignated), by striking
``7-year period referred to in paragraphs (4) and (6)'' and
inserting ``4-year period referred to in paragraphs (4) and
(5)''.
(b) Conforming Amendments.--The Fair Credit Reporting Act (15
U.S.C. 1681) is amended--
(1) in section 616(e) (as redesignated by section
110(a)(1)(B)), by striking ``section 605(g)'' each place that
term appears and inserting ``section 605(f)''; and
(2) in section 625(b)(5)(A), by striking ``section 605(g)''
and inserting ``section 605(f)''.
(c) Prohibition on Inclusion of Arrest Information if There Is No
Conviction.--Section 605(a) of the Fair Credit Reporting Act (15 U.S.C.
1681c(a)), as amended by section 809, is further amended by adding at
the end the following:
``(20) Records of an arrest, if the consumer was not
convicted of any crime in connection with the arrest.''.
SEC. 402. EXPEDITED REMOVAL OF FULLY PAID OR SETTLED DEBT FROM CONSUMER
REPORTS.
Section 605(a) of the Fair Credit Reporting Act (15 U.S.C.
1681c(a)), as amended by section 401, is further amended by adding at
the end the following new paragraph:
``(13) Any other adverse item of information related to a
fully paid or settled debt that had been characterized as
delinquent, charged off, or in collection which, from the date
of payment or settlement, antedates the report by more than 45
calendar days.''.
SEC. 403. MEDICAL DEBT COLLECTIONS.
(a) Removal of Fully Paid or Settled Medical Debt From Consumer
Reports.--Section 605(a) of the Fair Credit Reporting Act (15 U.S.C.
1681c(a)), as amended by section 402, is further amended by adding at
the end the following new paragraph:
``(14) Any other adverse item of information related to a
fully paid or settled debt arising from the receipt of medical
services, products, or devices that had been characterized as
delinquent, charged off, or in collection which, from the date
of payment or settlement, antedates the report by more than 45
calendar days.''.
(b) Establishing an Extended Time Period Before Certain Medical
Debt Information May Be Reported.--Section 605(a) of the Fair Credit
Reporting Act (15 U.S.C. 1681c(a)), as amended by subsection (a), is
further amended by adding at the end the following new paragraph:
``(15) Any information related to a debt arising from the
receipt of medical services, products, or devices, if the date
on which such debt was placed for collection, charged to profit
or loss, or subjected to any similar action antedates the
report by less than 365 calendar days.''.
(c) Prohibition on Reporting Medically Necessary Procedures.--
Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)),
as amended by subsection (b), is further amended by adding at the end
the following new paragraph:
``(16) Any information related to a debt arising from a
medically necessary procedure.''.
(d) Medically Necessary Procedure Defined.--Section 603 of the Fair
Credit Reporting Act (15 U.S.C. 1681a), as amended by section 901, is
further amended by adding at the end the following:
``(ee) Medically Necessary Procedure.--The term `medically
necessary procedure' means--
``(1) health care services or supplies needed to diagnose
or treat an illness, injury, condition, disease, or its
symptoms and that meet accepted standards of medicine; and
``(2) health care to prevent illness or detect illness at
an early stage, when treatment is likely to work best
(including preventive services such as pap tests, flu shots,
and screening mammograms).''.
(e) Technical Amendment.--Section 604(g)(1)(C) of the Fair Credit
Reporting Act (15 U.S.C. 1681b(g)(1)(C)) is further amended by striking
``devises'' and inserting ``devices''.
SEC. 404. CREDIT RESTORATION FOR VICTIMS OF PREDATORY MORTGAGE LENDING
AND SERVICING.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.) is amended by inserting after section 605B the following new
section:
``Sec. 605C. Credit restoration for victims of predatory mortgage
lending
``(a) In General.--A consumer reporting agency may not furnish any
consumer report containing any adverse item of information relating to
a covered residential mortgage loan (including the origination and
servicing of such a loan, any loss mitigation activities related to
such a loan, and any foreclosure, deed in lieu of foreclosure, or short
sale related to such a loan), if the action or inaction to which the
item of information relates--
``(1) resulted from an unfair, deceptive, or abusive act or
practice, or a fraudulent, discriminatory, or illegal activity
of a financial institution, as determined by the Bureau or a
court of competent jurisdiction; or
``(2) is related to an unfair, deceptive, or abusive act,
practice, or a fraudulent, discriminatory, or illegal activity
of a financial institution that is the subject of a settlement
agreement initiated on behalf of a consumer or consumers and
that is between the financial institution and an agency or
department of a local, State, or Federal Government, regardless
of whether such settlement includes an admission of wrongdoing.
``(b) Covered Residential Mortgage Loan Defined.--In this section,
the term `covered residential mortgage loan' means any loan primarily
for personal, family, or household use that is secured by a mortgage,
deed of trust, or other equivalent consensual security interest on a
dwelling (as defined in section 103(w) of the Truth in Lending Act),
including a loan in which the proceeds will be used for--
``(1) a manufactured home (as defined in section 603 of the
Housing and Community Development Act of 1974);
``(2) any installment sales contract, land contract, or
contract for deed on a residential property; or
``(3) a reverse mortgage transaction (as defined in section
103 of the Truth in Lending Act).''.
(b) Table of Contents Amendment.--The table of contents of the Fair
Credit Reporting Act is amended by inserting after the item relating to
section 605B the following new item:
``605C. Credit restoration for victims of predatory mortgage
lending.''.
(c) Effective Date.--The amendments made by this section shall take
effect at the end of the 18-month period beginning on the date of the
enactment of this Act.
SEC. 405. CREDIT RESTORATION FOR CERTAIN PRIVATE EDUCATION LOANS
BORROWERS.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.), as amended by section 404, is further amended by inserting after
section 605C the following new section:
``Sec. 605D. Credit restoration for certain private education loans
borrowers
``(a) Process for Certification as a Qualifying Private Education
Loan Borrower.--
``(1) In general.--A consumer may submit a request to the
Bureau, along with a defraudment claim, to be certified as a
qualifying private education loan borrower with respect to a
private education loan.
``(2) Certification.--The Bureau shall certify a consumer
described in paragraph (1) as a qualifying private education
loan borrower with respect to a private education loan if the
Bureau or a court of competent jurisdiction determines that the
consumer has a valid defraudment claim with respect to such
loan.
``(b) Removal of Adverse Information.--Upon receipt of a notice
described in subsection (d)(5), a consumer reporting agency shall
remove any adverse information relating to any private education loan
with respect to which a consumer is a qualifying private education loan
borrower from any consumer report within 45 calendar days of receipt of
such notification.
``(c) Disclosure.--The Bureau shall disclose the results of a
certification determination in writing to the consumer that provides a
clear and concise explanation of the basis for the determination of
whether such consumer is a qualifying private education loan borrower
with respect to a private education loan and, as applicable, an
explanation of the consumer's right to have adverse information
relating to such loan removed from their consumer report by a consumer
reporting agency.
``(d) Procedures.--The Bureau shall--
``(1) establish procedures for a consumer to submit a
request described in subsection (a);
``(2) establish procedures to efficiently review, accept,
and process such a request;
``(3) develop ongoing outreach initiatives and education
programs to inform consumers of the circumstances under which
such consumer may be eligible to be certified as a qualifying
private education loan borrower with respect to a private
education loan;
``(4) establish procedures, including the manner, form, and
content of the notice informing a private educational loan
holder of the prohibition on reporting any adverse information
relating to a private education loan with respect to which a
consumer is a qualifying private education loan borrower; and
``(5) establish procedures, including the manner, form, and
content of the notice informing a consumer reporting agency of
the obligation to remove any adverse information as described
in subsection (c).
``(e) Standardized Reporting Codes.--A consumer reporting agency
shall develop standardized reporting codes for use by private education
loan holders to identify and report a qualifying private education loan
borrower's status of a request to remove any adverse information
relating to any private education loan with respect to which such
consumer is a qualifying private education loan borrower. A consumer
report in which a person furnishes such codes shall be deemed to comply
with the requirements for accuracy and completeness required under
sections 607(b), 623(a)(1), and 632. Such codes shall not appear on any
report provided to a third party, and shall be removed from the
consumer's credit report upon the successful restoration of the
consumer's credit under this section.
``(f) Defraudment Claim Defined.--For purposes of this section, the
term `defraudment claim' means a claim made with respect to a consumer
who is a borrower of a private education loan with respect to a
proprietary educational institution or career education program in
which the consumer alleges that--
``(1) the proprietary educational institution or career
education program--
``(A) engaged in an unfair, deceptive, or abusive
act or practice, or a fraudulent, discriminatory, or
illegal activity--
``(i) as defined by State law of the State
in which the proprietary educational
institution or career education program is
headquartered or maintains or maintained
significant operations; or
``(ii) under Federal law;
``(B) is the subject of an enforcement order, a
settlement agreement, a memorandum of understanding, a
suspension of tuition assistance, or any other action
relating to an unfair, deceptive, or abusive act or
practice that is between the proprietary educational
institution or career education program and an agency
or department of a local, State, or Federal Government;
or
``(C) misrepresented facts to students or
accrediting agencies or associations about graduation
or gainful employment rates in recognized occupations
or failed to provide the coursework necessary for
students to successfully obtain a professional
certification or degree from the proprietary
educational institution or career education program; or
``(2) the consumer has submitted a valid defense to
repayment claim with respect to such loan, as determined by the
Secretary of Education.''.
(b) Table of Contents Amendment.--The table of contents of the Fair
Credit Reporting Act, as amended by section 404, is further amended by
inserting after the item relating to section 605C the following new
item:
``605D. Credit restoration for certain private education loans
borrowers.''.
SEC. 406. FINANCIAL ABUSE PREVENTION.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.), as amended by section 301, is further amended by inserting after
section 605E the following new section:
``Sec. 605F. Financial abuse prevention
``For a consumer who is the victim of intentionally abusive or
harmful financial behavior, as determined by a court of competent
jurisdiction including a family court, juvenile court, or other court
with personal jurisdiction, that was conducted by a spouse, family or
household member, caregiver, or person with whom such consumer had a
dating relationship in a manner which resulted in the inclusion of an
adverse item of information on the consumer report of the consumer, and
the consumer did not participate in or consent to such behavior, the
consumer may apply to a court of competent jurisdiction, including a
family court, juvenile court, or other court with personal
jurisdiction, for an order to require the removal of such adverse
information from the consumer's file maintained by any consumer
reporting agency.''.
(b) Table of Contents Amendment.--The table of contents of the Fair
Credit Reporting Act, as amended by section 301, is further amended by
inserting after the item relating to section 605E the following new
item:
``605F. Financial abuse prevention.''.
SEC. 407. PROHIBITION OF CERTAIN FACTORS RELATED TO FEDERAL CREDIT
RESTORATION OR REHABILITATION.
The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended
by section 502, is further amended--
(1) by adding at the end the following new section:
``Sec. 632. Prohibition of certain factors related to Federal credit
restoration or rehabilitation
``(a) Restriction on Credit Scoring Models.--A credit scoring model
may not--
``(1) take into consideration, in a manner adverse to a
consumer's credit score or educational credit score, any
information in a consumer report concerning the consumer's
participation in credit restoration or rehabilitation under
section 605C, 605D, or 605E; or
``(2) treat negatively, in a manner adverse to a consumer's
credit score or educational credit score, the absence of
payment history data for an existing account, whether the
account is open or closed, where the absence of such
information is the result of a consumer's participation in
credit restoration or rehabilitation under section 605C, 605D,
or 605E.
``(b) Restriction on Persons Obtaining Consumer Reports.--A person
who obtains a consumer report may not--
``(1) take into consideration, in a manner adverse to a
consumer, any information in a consumer report concerning the
consumer's participation in credit restoration or
rehabilitation under section 605C, 605D, or 605E; or
``(2) treat negatively the absence of payment history data
for an existing account, whether the account is open or closed,
where the absence of such information is the result of a
consumer's participation in credit restoration or
rehabilitation under section 605C, 605D, or 605E.
``(c) Accuracy and Completeness.--If a person who furnishes
information to a consumer reporting agency requests the removal of
information from a consumer report or a consumer reporting agency
removes information from a consumer report in compliance with the
requirements under section 605C, 605D, or 605E, or such information was
removed pursuant at section 605(a)(11), such report shall be deemed to
satisfy the requirements for accuracy and completeness with respect to
such information.
``(d) Prohibition Related to Adverse Actions and Risk-Based Pricing
Decisions.--No person shall use information related to a consumer's
participation in credit restoration or rehabilitation under section
605C, 605D, or 605E in connection with any determination of--
``(1) the consumer's eligibility or continued eligibility
for an extension of credit;
``(2) the terms and conditions offered to a consumer
regarding an extension of credit; or
``(3) an adverse action made for employment purposes.'';
and
(2) in the table of contents for such Act, by inserting
after the item relating to section 631 the following new item:
``632. Prohibition of certain factors related to Federal credit
restoration or rehabilitation.''.
TITLE V--CLARITY IN CREDIT SCORE FORMATION
SEC. 501. CONSUMER BUREAU STUDY AND REPORT TO CONGRESS ON THE IMPACT OF
NON-TRADITIONAL DATA.
(a) Study.--The Bureau of Consumer Financial Protection shall carry
out a study to assess the impact (including the availability and
affordability of credit and other noncredit decisions, the potential
positive and negative impacts on consumer credit scores, and any
unintended consequences) of using traditional modeling techniques or
alternative modeling techniques to analyze non-traditional data from a
consumer report and of including non-traditional data on consumer
reports on the following:
(1) Consumers with no or minimal traditional credit
history.
(2) Traditionally underserved communities and populations.
(3) Consumers residing in rural areas.
(4) Consumers residing in urban areas.
(5) Racial and ethnic minorities and women.
(6) Consumers across various income strata, particularly
consumers earning less than 120 percent of the area median
income (as defined by the Secretary of Housing and Urban
Development).
(7) Immigrants, refugees, and non-permanent residents.
(8) Minority financial institutions (as defined under
section 308(b) of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 1463 note)) and
community financial institutions.
(9) Consumers residing in federally assisted housing,
including consumers receiving Federal rental subsidies.
(b) Additional Considerations.--In assessing impacts under
subsection (a), the Bureau of Consumer Financial Protection shall also
consider impacts on--
(1) the privacy, security, and confidentiality of the
financial, medical, and personally identifiable information of
consumers;
(2) the control of consumers over how such information may
or will be used or considered;
(3) the understanding of consumers of how such information
may be used or considered and the ease with which a consumer
may decide to restrict or prohibit such use or consideration of
such information;
(4) potential discriminatory effects; and
(5) disparate outcomes the use or consideration of such
information may cause.
(c) Consideration of Recent Government Studies.--In assessing
impacts under subsection (a), the Bureau of Consumer Financial
Protection shall also consider recent Government studies on alternative
data, including--
(1) the report of the Bureau of Consumer Financial
Protection titled ``CFPB Data Point: Becoming Credit Visible''
(published June 2017); and
(2) the report of the Comptroller General of the United
States titled ``Financial Technology: Agencies Should Provide
Clarification on Lenders' Use of Alternative Data'' (published
December 2018).
(d) Report.--Not later than 1 year after the date of the enactment
of this Act, the Bureau of Consumer Financial Protection shall issue a
report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate containing all findings and determinations,
including any recommendations for any legislative or regulatory
changes, made in carrying out the study required under subsection (a).
(e) Definitions.--In this section:
(1) Alternative modeling techniques.--The term
``alternative modeling techniques'' means statistical and
mathematical techniques that are not traditional modeling
techniques, including decision trees, random forests,
artificial neutral networks, nearest neighbor, genetic
programming, and boosting algorithms.
(2) Consumer report.--The term ``consumer report'' has the
meaning given such term in section 603 of the Fair Credit
Reporting Act (15 U.S.C. 1681a).
(3) Non-traditional data.--The term ``non-traditional
data'' means data related to telecommunications, utility
payments, rent payments, remittances, wire transfers, data not
otherwise regularly included in consumer reports issued by
consumer reporting agencies described under section 603(p), and
such other items as the Bureau of Consumer Financial Protection
deems appropriate.
(4) Traditional modeling techniques.--The term
``traditional modeling techniques'' means statistical and
mathematical techniques (including models, algorithms, linear
and logistic regression methods, and their outputs) that are
traditionally used in automated underwriting processes.
SEC. 502. CONSUMER BUREAU OVERSIGHT OF CREDIT SCORING MODELS.
The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended
by section 701, is further amended--
(1) by adding at the end the following new section:
``Sec. 631. Credit scoring models
``(a) Validated Credit Scoring Models.--Not later than 1 year after
the date of the enactment of this section, the Bureau shall (in
consultation with the Board of Governors of the Federal Reserve System,
the Comptroller of the Currency, the Board of Directors of the Federal
Deposit Insurance Corporation, and the National Credit Union
Administration Board) issue final regulations applicable to any person
that creates, maintains, utilizes, or purchases credit scoring models
used in making credit decisions to establish standards for validating
the accuracy and predictive value of all such credit scoring models,
both before release for initial use and at regular intervals
thereafter, for as long as such credit scoring models are made
available for purchase or use by such person.
``(b) Prohibition.--At least once every 2 years, the Bureau shall
conduct a review of credit scoring models to determine whether the use
of any particular factors, or the weight or consideration given to
certain factors by credit scoring models, is inappropriate, including
if such factors do not enhance or contribute to the accuracy and
predictive value of the models. Upon the conclusion of its review, the
Bureau may prohibit a person described in subsection (a) from weighing,
considering, or including certain factors in, or making available for
purchase or use, certain credit scoring models or versions, as the
Bureau determines appropriate.''; and
(2) in the table of contents for such Act, as amended by
section 701, by adding after the item relating to section 630
the following new item:
``631. Credit scoring models.''.
SEC. 503. REVIEW OF CHANGES TO CREDIT SCORING MODELS.
Section 631 of the Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.), as added by section 502, is amended by adding at the end the
following:
``(c) Review of Changes to Credit Scoring Models.--With respect to
a person that creates credit scoring models used in making credit
decisions, if such person creates a new credit scoring model (including
a revision to an existing scoring model) that would, when compared to
previous credit scoring models created by such person, lower the credit
scores of a class of consumers, the Director of the Bureau may review
such new credit scoring model and, if the Director determines that such
new credit scoring model is inappropriate (including, with respect to a
revision to an existing scoring model, if such revision does not
enhance or contribute to the accuracy and predictive value of the
existing scoring model), the Director may prohibit such new credit
scoring model.''.
TITLE VI--RESTRICTIONS ON CREDIT CHECKS FOR EMPLOYMENT DECISIONS
SEC. 601. PROHIBITION ON THE USE OF CREDIT INFORMATION FOR MOST
EMPLOYMENT DECISIONS.
(a) In General.--Section 604 of the Fair Credit Reporting Act (15
U.S.C. 1681b) is amended--
(1) in subsection (a)(3)(B), by inserting ``, subject to
the requirements of subsection (b)'' after ``purposes''; and
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by amending the paragraph heading to
read as follows: ``Use of Consumer Reports for
Employment Purposes'';
(ii) in subparagraph (A), by redesignating
clauses (i) and (ii) as subclauses (I) and
(II), respectively (and conforming the margins
accordingly);
(iii) by redesignating subparagraphs (A)
and (B) as clauses (i) and (ii), respectively
(and conforming the margins accordingly);
(iv) by striking the period at the end of
clause (ii) (as so redesignated) and inserting
``; and'';
(v) by striking ``agency may furnish'' and
inserting ``agency--
``(A) may furnish''; and
(vi) by adding at the end the following new
subparagraph:
``(B) except as provided in paragraph (5), may not
furnish a consumer report for employment purposes,
including for the purpose of denying employment, with
respect to any consumer in which any information
contained in the report bears on the consumer's
creditworthiness, credit standing, or credit
capacity.''; and
(B) by adding at the end the following new
paragraphs:
``(5) Requirements for consumer reports bearing on the
consumer's creditworthiness, credit standing, or credit
capacity.--
``(A) In general.--A person may use a consumer
report for employment purposes with respect to any
consumer in which any information contained in the
report bears on the consumer's creditworthiness, credit
standing, or credit capacity only if--
``(i)(I) the person is required to obtain
the report by a Federal, State, or local law or
regulation;
``(II) the information contained in the
report is being used with respect to a national
security investigation (as defined in paragraph
(4)(D)); or
``(III) the report is necessary for a
background check or related investigation of
financial information that is required by a
Federal, State, or local law or regulation;
``(ii) none of the cost associated with
obtaining the consumer report will be passed on
to the consumer to whom the report relates; and
``(iii) the information contained in the
consumer report will not be disclosed to any
other person other than--
``(I) in an aggregate format that
protects a consumer's personally
identifiable information; or
``(II) as may be necessary to
comply with any applicable Federal,
State, or local equal employment
opportunity law or regulation.
``(B) Disclosures.--A person who procures, or
causes to be procured, a consumer report described in
subparagraph (A) for employment purposes shall, in the
disclosure made pursuant to paragraph (2), include--
``(i) an explanation that a consumer report
is being obtained for employment purposes;
``(ii) the reasons for obtaining such a
report; and
``(iii) the citation to the applicable
Federal, State, or local law or regulation
described in subparagraph (A)(i)(I).
``(C) Adverse actions.--In using a consumer report
described in subparagraph (A) for employment purposes
and before taking an adverse action based in whole or
in part on the report, the person intending to take
such adverse action shall, in addition to the
information described in paragraph (3), provide to the
consumer to whom the report relates--
``(i) the name, address, and telephone
number of the consumer reporting agency that
furnished the report (including, for a consumer
reporting agency that compiles and maintains
files on consumers on a nationwide basis, a
toll-free telephone number established by such
agency);
``(ii) the date on which the report was
furnished; and
``(iii) the specific factors from the
report upon which the adverse action (as
defined in section 603(k)(1)(B)(ii)) was based.
``(D) National security investigations.--The
requirements of paragraph (4) shall apply to a consumer
report described under subparagraph (A).
``(E) Non-circumvention.--With respect to a
consumer report in which any information contained in
the report bears on the consumer's creditworthiness,
credit standing, or credit capacity, if a person is
prohibited from using the consumer report pursuant to
subparagraph (A), such person may not, directly or
indirectly, either orally or in writing, require,
request, suggest, or cause any employee or prospective
employee to submit such information to the person as a
condition of employment.
``(F) Non-waiver.--A consumer may not waive the
requirements of this paragraph with respect to a
consumer report.
``(6) Rule of construction.--Nothing in this subsection
shall be construed to require a consumer reporting agency to
prevent a Federal, State, or local law enforcement agency from
accessing information in a consumer report to which the law
enforcement agency could otherwise obtain access.''.
(b) Technical Amendment.--The Fair Credit Reporting Act (15 U.S.C.
1681 et seq.) is amended by striking ``section 604(b)(4)(E)(i)'' each
place such term appears and inserting ``section 604(b)(4)(D)(i)''.
(c) Rule of Construction.--The amendments made by this Act may not
be construed as limiting the ability of a person to use non-financial
or non-credit related consumer report information.
TITLE VII--PROHIBITION ON MISLEADING AND UNFAIR CONSUMER REPORTING
PRACTICES
SEC. 701. PROHIBITION ON AUTOMATIC RENEWALS FOR PROMOTIONAL CONSUMER
REPORTING AND CREDIT SCORING PRODUCTS AND SERVICES.
The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended--
(1) by adding at the end the following new section:
``Sec. 630. Promotional periods
``(a) Termination Notice.--With respect to any product or service
related to a consumer report or a credit score that is provided to a
consumer under promotional terms, the seller or provider of such
product or service shall provide clear and conspicuous notice to the
consumer within a reasonable period of time before the promotional
period ends.
``(b) Opt-In.--With respect to any such product or service, the
seller or provider may not continue to sell or provide such product or
service to the consumer after the end of the promotional period unless
the consumer specifically agrees at the end of the promotional period
to continue receiving the product or service.''; and
(2) in the table of contents for such Act, by inserting
after the item relating to section 629 the following new item:
``630. Promotional periods.''.
SEC. 702. PROHIBITION ON MISLEADING AND DECEPTIVE MARKETING RELATED TO
THE PROVISION OF CONSUMER REPORTING AND CREDIT SCORING
PRODUCTS AND SERVICES.
Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g), as
amended by section 206, is further amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``request, except'' and all
that follows through ``consumer to whom'' and
inserting ``request, unless the consumer to
whom'';
(ii) by striking ``disclosure; and'' and
inserting ``disclosure.''; and
(iii) by striking subparagraph (B); and
(B) in paragraph (6), by inserting ``or educational
credit score (if applicable) under subsection (f) or
section 612'' before the period at the end; and
(2) by adding at the end the following new subsection:
``(j) Disclosures on Products and Services.--The Bureau, in
consultation with the Federal Trade Commission, shall issue regulations
within 18 months of the date of the enactment of this subsection
requiring each consumer reporting agency and reseller to clearly and
conspicuously disclose all material terms and conditions, including any
fee and pricing information associated with any products or services
offered, advertised, marketed, or sold to consumers by the agency or
reseller. Such disclosures shall be made in all forms of communication
to consumers and displayed prominently on the agency or reseller's
website and all other locations where products or services are offered,
advertised, marketed, or sold to consumers.''.
SEC. 703. PROHIBITION ON EXCESSIVE DIRECT-TO-CONSUMER SALES.
The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended
by section 407, is further amended--
(1) by adding after section 632 the following new section:
``Sec. 633. Fair and reasonable fees for products and services
``The Bureau may, with respect to any product or service offered by
a consumer reporting agency to a consumer, set a fair and reasonable
maximum fee that may be charged for such product or service, except
where such maximum fee is otherwise provided under this title.''; and
(2) in the table of contents for such Act, by adding at the
end the following new item:
``633. Fair and reasonable fees for products and services.''.
SEC. 704. FAIR ACCESS TO CONSUMER REPORTING AND CREDIT SCORING
DISCLOSURES FOR NONNATIVE ENGLISH SPEAKERS AND THE
VISUALLY AND HEARING IMPAIRED.
The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended
by section 903, is further amended--
(1) by adding at the end the following new section:
``Sec. 635. Fair access to information for nonnative English speakers
and the visually and hearing impaired
``(a) In General.--Not later than 180 days after the date of the
enactment of this section, the Bureau shall issue a rule to require
consumer reporting agencies and persons who furnish information to
consumer reporting agencies under this title, to the maximum extent
reasonably practicable--
``(1) to provide any information, disclosures, or other
communication with consumers--
``(A) in each of the 10 most commonly spoken
languages, other than English, in the United States, as
determined by the Bureau of the Census on an ongoing
basis; and
``(B) in formats accessible to individuals with
hearing or vision impairments; and
``(2) to ensure that--
``(A) customer service representatives, including
employees assigned to handle disputes or appeals under
sections 611 and 623, who are available to assist
consumers are highly familiar with the requirements of
this title;
``(B) such representatives are available during
regular business hours and outside of regular business
hours, including evenings and weekends; and
``(C) at least one among such representatives is
fluent in each of the 10 most commonly spoken
languages, other than English, in the United States, as
determined by the Bureau of the Census on an ongoing
basis.
``(b) Bureau Consultation.--The Bureau shall consult with advocates
for civil rights, consumer groups, community groups, and organizations
that serve traditionally underserved communities and populations in
issuing the rule described in subsection (a).''; and
(2) in the table of contents for such Act, by adding at the
end the following new item:
``635. Fair access to information for nonnative English speakers and
the visually and hearing impaired.''.
SEC. 705. COMPARISON SHOPPING FOR LOANS WITHOUT HARM TO CREDIT
STANDING.
Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c), as
amended by section 401, is further amended by adding at the end the
following new subsection:
``(h) Encouraging Comparison Shopping for Loans.--
``(1) In general.--With respect to multiple enquiries of
the same type made to a consumer reporting agency for a
consumer report or credit score with respect to a consumer, any
credit scoring model shall treat such enquiries as a single
enquiry if the enquiries are made within a 120-day period.
``(2) Definition of enquiries of the same type.--With
respect to multiple enquiries made to a consumer reporting
agency for a consumer report or credit score with respect to a
consumer, such enquiries are `of the same type' if the consumer
reporting agency has reason to believe that the enquiries are
all made for the purpose of determining the consumer's
creditworthiness for an extension of credit described in one of
the following:
``(A) A covered residential mortgage loan (as
defined in section 605C).
``(B) A motor vehicle loan or lease (as described
in section 609(i)).
``(C) A private education loan.
``(D) Any other consumer financial product or
service, as determined by the Bureau.''.
SEC. 706. NATIONWIDE CONSUMER REPORTING AGENCIES REGISTRY.
The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended
by section 704, is further amended--
(1) by adding at the end the following new section:
``Sec. 636. Nationwide consumer reporting agencies registry
``(a) In General.--Not later than 1 year after the date of
enactment of this section, the Bureau shall establish and maintain a
publicly accessible registry of consumer reporting agencies described
in subsection (p) or (x) of section 603 (and any other agencies the
Bureau determines provide similar services to such consumer reporting
agencies) that includes current contact information of each such
agency, including the Internet website address of the Internet website
described under section 611(h), and information on how consumers can
obtain their consumer report, credit scores, or educational credit
scores (as applicable) by toll-free telephone, postal mail, or
electronic means.
``(b) Registry Requirements.--The registry described in subsection
(a) shall--
``(1) identify the largest agencies and the markets and
demographics covered by such agencies; and
``(2) disclose, with respect to each agency, whether the
agency is subject to the supervisory authority of the Bureau
under this title.
``(c) Information Updates.--Each agency described under subsection
(a) shall submit to the Bureau contact information for the registry,
including any updates to such information. The Bureau shall--
``(1) independently verify information submitted by each
agency; and
``(2) update the registry not less frequently than
annually.''; and
(2) in the table of contents for such Act by adding at the
end the following new item:
``636. Nationwide consumer reporting agencies registry.''.
SEC. 707. PROTECTION FOR CERTAIN CONSUMERS AFFECTED BY A SHUTDOWN.
(a) Definition of Employee Affected by a Shutdown.--Section 603 of
the Fair Credit Reporting Act (15 U.S.C. 1681a), as amended by section
901, is further amended by adding at the end the following:
``(ff) Employee Affected by a Shutdown.--With respect to a
shutdown, the term `employee affected by a shutdown' means a consumer
who--
``(1) is an employee of--
``(A) the Federal Government, and who is furloughed
or excepted from a furlough during the shutdown;
``(B) the District of Columbia, and who is
furloughed or excepted from a furlough during the
shutdown;
``(C) the District of Columbia Courts, and who is
furloughed or excepted from a furlough during the
shutdown;
``(D) the Public Defender Service for the District
of Columbia, and who is furloughed or excepted from a
furlough during the shutdown; or
``(E) a Federal contractor (as defined under
section 7101 of title 41, United States Code) or other
business, and who has experienced a substantial
reduction in pay (directly or indirectly) due to the
shutdown; and
``(2) who--
``(A) is listed in the database established under
section 63; or
``(B) has self-certified pursuant to such section.
``(gg) Shutdown.--The term `shutdown' means any period in which
there is more than a 24-hour lapse in appropriations as a result of a
failure to enact a regular appropriations bill or continuing
resolution.
``(hh) Covered Shutdown Period.--The term `covered shutdown period'
means, with respect to a shutdown, the period beginning on the first
day of the shutdown and ending on the date that is 90 days after the
last day of the shutdown.''.
(b) Exclusion for Employees Affected by a Shutdown.--Section 605(a)
of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)), as amended by
section 809, is further amended by adding at the end the following:
``(18) Any adverse item of information with respect to an
action or inaction taken during a covered shutdown period by an
employee affected by a shutdown.''.
(c) Amendment to Summary of Rights for Employees Affected by a
Shutdown.--Section 609(a) of the Fair Credit Reporting Act (15 U.S.C.
1681g(a)) is amended by adding at the end the following:
``(7) Information on the rights of an employee affected by
a shutdown, including which consumers may be an employee
affected by a shutdown and the process for a consumer to self-
certify as an employee affected by a shutdown under section
637.''.
(d) Database and Self-Certification for Employees Affected by a
Shutdown.--
(1) In general.--The Fair Credit Reporting Act (15 U.S.C.
1681 et seq.), as amended by section 706, is further amended by
adding at the end the following new section:
``Sec. 637. Database and self-certification for employees affected by a
shutdown
``(a) Database.--
``(1) In general.--With respect to each shutdown, the
consumer reporting agencies described in section 603(p) shall
jointly establish a database that includes employees affected
by the shutdown as reported pursuant to paragraph (2).
``(2) Contents of database.--
``(A) Furloughed employees and contractors.--Each
authority of the executive, legislative, or judicial
branch of the Federal Government or District of
Columbia shall provide to the consumer reporting
agencies described in section 603(p) a list
identifying--
``(i) employees of such authority that are
furloughed, excepted from furlough, or not
receiving pay because of a shutdown; and
``(ii) to the extent practicable, employees
of contractors of such authority.
``(B) Self-certified consumers.--A consumer that
self-certifies as an employee affected by a shutdown
pursuant to subsection (b) shall be included in the
database, unless the Bureau determines such consumer is
not an employee affected by a shutdown.
``(3) Access to database.--The consumer reporting agencies
described in section 603(p) shall make the database established
under this subsection available to the Bureau, other consumer
reporting agencies, furnishers of information to consumer
reporting agencies, and users of consumer reports. A consumer
reporting agency described in section 603(x) shall periodically
access the database to confirm the accuracy of information such
an agency has that identifies a consumer as an employee
affected by a shutdown.
``(b) Self-Certification Process.--A consumer shall be deemed to be
an employee affected by a shutdown if such consumer self-certifies
through--
``(1) the website established under subsection (c); or
``(2) a toll-free telephone number established by a
consumer reporting agency.
``(c) Website.--The consumer reporting agencies described in
section 603(p) shall jointly establish a website for a consumer to
self-certify as an employee affected by a shutdown. Such website may
not include any advertisement or other solicitation.
``(d) Opt-Out.--The consumer reporting agencies described in
section 603(p) shall provided a process through the website described
under subsection (c) for consumers to opt-out of having their name
included in the database established under this section.''.
(2) Table of contents amendment.--The table of contents of
the Fair Credit Reporting Act, as amended by section 706, is
further amended by adding at the end the following new item:
``637. Database and self-certification for employees affected by a
shutdown.''.
(e) Prohibition on Adverse Actions Against Employees Affected by a
Shutdown.--Section 604 of the Fair Credit Reporting Act (15 U.S.C.
1681b) is amended by adding at the end the following:
``(h) Prohibition on Adverse Actions Against Employees Affected by
a Shutdown.--If a user of a consumer report knows that a consumer is an
employee affected by a shutdown, such user may not take an adverse
action based on--
``(1) any adverse item of information contained in such
report with respect to an action or inaction taken during a
covered shutdown period by the employee; or
``(2) information on the consumer included in the database
established under section 637.''.
(f) Bureau Regulations or Guidance.--Not later than 30 days after
the date of the enactment of this Act, the Director of the Bureau of
Consumer Financial Protection shall issue rules or guidance, as
appropriate, to carry out the requirements of this Act.
TITLE VIII--PROTECTIONS AGAINST IDENTITY THEFT, FRAUD, OR A RELATED
CRIME
SEC. 801. IDENTITY THEFT REPORT DEFINITION.
(a) In General.--Paragraph (4) of section 603(q) of the Fair Credit
Reporting Act (15 U.S.C. 1681a(q)(4)) is amended to read as follows:
``(4) Identity theft report.--The term `identity theft
report' has the meaning given that term by rule of the Bureau,
and means, at a minimum, a report--
``(A) that is a standardized affidavit that alleges
that a consumer has been a victim of identity theft,
fraud, or a related crime, or has been harmed by the
unauthorized disclosure of the consumer's financial or
personally identifiable information, that was developed
and made available by the Bureau; or
``(B)(i) that alleges an identity theft, fraud, or
a related crime, or alleges harm from the unauthorized
disclosure of the consumer's financial or personally
identifiable information;
``(ii) that is a copy of an official, valid report
filed by a consumer with an appropriate Federal, State,
or local law enforcement agency (including the United
States Postal Inspection Service), or such other
government agency deemed appropriate by the Bureau; and
``(iii) the filing of which subjects the person
filing the report to criminal penalties relating to the
filing of false information if the information in the
report is actually false.''.
(b) Rulemaking.--Not later than the end of the 2-year period
beginning on the date of enactment of this Act, the Director of the
Bureau of Consumer Financial Protection shall issue final rules to
carry out the amendment made by subsection (a).
SEC. 802. AMENDMENT TO PROTECTION FOR FILES AND CREDIT RECORDS OF
PROTECTED CONSUMERS.
(a) Amendment to Definition of ``File''.--Section 603(g) of the
Fair Credit Reporting Act (15 U.S.C. 1681a(g)) is amended by inserting
``, except that such term excludes a record created pursuant to section
605A(j)'' after ``stored''.
(b) Amendment to Protection for Files and Credit Records.--Section
605A(j) of the Fair Credit Reporting Act (15 U.S.C. 1681c-1(j)) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (B)(ii), by striking ``an
incapacitated person or a protected person'' and
inserting ``a person''; and
(B) by amending subparagraph (E) to read as
follows:
``(E) The term `security freeze'--
``(i) has the meaning given in subsection
(i)(1)(C); and
``(ii) with respect to a protected consumer
for whom the consumer reporting agency does not
have a file, means a record that is subject to
a security freeze that a consumer reporting
agency is prohibited from disclosing to any
person requesting the consumer report for the
purpose of opening a new account involving the
extension of credit.''; and
(2) in paragraph (4)(D), by striking ``a protected consumer
or a protected consumer's representative under subparagraph
(A)(i)'' and inserting ``a protected consumer described under
subparagraph (A)(ii) or a protected consumer's
representative''.
SEC. 803. ENHANCEMENT TO FRAUD ALERT PROTECTIONS.
Section 605A of the Fair Credit Reporting Act (15 U.S.C. 1681c-1)
is amended--
(1) in subsection (a)--
(A) in the subsection heading, by striking ``One-
Call'' and inserting ``1-Year'';
(B) in paragraph (1)--
(i) in the paragraph heading, by striking
``Initial alerts'' and inserting ``In
general'';
(ii) by inserting ``or has been or is about
to be harmed by the unauthorized disclosure of
the consumer's financial or personally
identifiable information,'' after ``identity
theft,'';
(iii) in subparagraph (A)--
(I) by inserting ``(which period
may be extended upon request of the
consumer or such representative)''
after ``1 year''; and
(II) by striking ``and'' at the
end;
(iv) in subparagraph (B)--
(I) by inserting ``1-year'' before
``fraud alert''; and
(II) by striking the period at the
end and inserting ``; and''; and
(v) by adding at the end the following new
subparagraph:
``(C) upon the expiration of the period described
in subparagraph (A) or any extension of such period,
and in response to a direct request by the consumer or
such representative, continue the fraud alert for a
period of 1 additional year if the information asserted
in this paragraph remains applicable.''; and
(C) in paragraph (2)--
(i) in the paragraph heading, by inserting
``and credit or educational credit scores''
after ``reports'';
(ii) by inserting ``1-year'' before ``fraud
alert'';
(iii) in subparagraph (A), by inserting
``and credit score or educational credit
score'' after ``file''; and
(iv) in subparagraph (B), by striking ``any
request described in subparagraph (A)'' and
inserting ``the consumer reporting agency
includes the 1-year fraud alert in the file of
a consumer'';
(2) in subsection (b)--
(A) in the subsection heading, by striking
``Extended'' and inserting ``7-Year'';
(B) in paragraph (1)--
(i) in subparagraph (A), by inserting
``(which period may be extended upon request of
the consumer or such representative)'' after
``7-year period beginning on the date of such
request'';
(ii) in subparagraph (B)--
(I) by striking ``the 5-year period
beginning on the date of such request''
and inserting ``such 7-year period
(including any extension of such
period)''; and
(II) by striking ``and'' at the
end;
(iii) in subparagraph (C)--
(I) by striking ``extended'' and
inserting ``7-year''; and
(II) by striking the period at the
end and inserting ``; and''; and
(iv) by adding at the end the following new
subparagraph:
``(D) upon the expiration of such 7-year period or
any extension of such period, and in response to a
direct request by the consumer or such representative,
continue the fraud alert for a period of 7 additional
years if the consumer or such representative submits an
updated identity theft report.''; and
(C) in paragraph (2)--
(i) in the paragraph heading, by inserting
``and credit or educational credit scores''
after ``reports''; and
(ii) by amending subparagraph (A) to read
as follows:
``(A) disclose to the consumer that the consumer
may request a free copy of the file and credit score or
educational credit score of the consumer pursuant to
section 612(d) during each 12-month period beginning on
the date on which the 7-year fraud alert was included
in the file and ending on the date of the last day that
the 7-year fraud alert applies to the consumer's file;
and'';
(3) in subsection (c)--
(A) in paragraph (1), by inserting ``or educational
credit score'' after ``credit score'';
(B) by redesignating paragraphs (1), (2), and (3),
as subparagraphs (A), (B), and (C), respectively (and
conforming the margins accordingly);
(C) by striking ``Upon the direct request'' and
inserting:
``(1) In general.--Upon the direct request''; and
(D) by adding at the end the following new
paragraph:
``(2) Access to free reports and credit or educational
credit scores.--If a consumer reporting agency includes an
active duty alert in the file of an active duty uniformed
consumer, the consumer reporting agency shall--
``(A) disclose to the active duty uniformed
consumer that the active duty uniformed consumer may
request a free copy of the file and credit score or
educational credit score of the active duty uniformed
consumer pursuant to section 612(d), during each 12-
month period beginning on the date that the activity
duty alert is requested and ending on the date of the
last day the active duty alert applies to the file of
the active duty uniformed consumer; and
``(B) provide to the active duty uniformed consumer
all disclosures required to be made under section 609,
without charge to the consumer, not later than 3
business days after any request described in
subparagraph (A).'';
(4) by amending subsection (d) to read as follows:
``(d) Procedures.--Each consumer reporting agency described in
section 603(p) shall include on the webpage required under subsection
(i) policies and procedures to comply with this section, including
policies and procedures--
``(1) that inform consumers of the availability of 1-year
fraud alerts, 7-year fraud alerts, active duty alerts, and
security freezes (as applicable);
``(2) that allow consumers to request 1-year fraud alerts,
7-year fraud alerts, and active duty alerts (as applicable) and
to place, temporarily lift, or fully remove a security freeze
in a simple and easy manner; and
``(3) for asserting in good faith a suspicion that the
consumer has been or is about to become a victim of identity
theft, fraud, or a related crime, or harmed by the unauthorized
disclosure of the consumer's financial or personally
identifiable information, for a consumer seeking a 1-year fraud
alert or security freeze.'';
(5) in subsection (e), by inserting ``1-year or 7-year''
before ``fraud alert'';
(6) in subsection (f), by striking ``or active duty alert''
and inserting ``active duty alert, or security freeze (as
applicable)'';
(7) in subsection (g)--
(A) by inserting ``or has been harmed by the
unauthorized disclosure of the consumer's financial or
personally identifiable information, or to inform such
agency of the consumer's participation in credit
restoration or rehabilitation under section 605C, 605D,
or 605E,'' after ``identity theft,''; and
(B) by inserting ``or security freezes'' after
``request alerts'';
(8) in subsection (h)--
(A) in paragraph (1)--
(i) in the paragraph heading, by striking
``initial'' and inserting ``1-year''; and
(ii) by striking ``initial'' and inserting
``1-year'' each place such term appears; and
(B) in paragraph (2)--
(i) in the paragraph heading, by striking
``extended'' and inserting ``7-year''; and
(ii) by striking ``extended'' and inserting
``7-year'' each place such term appears; and
(9) in subsection (i)(4)--
(A) by striking subparagraphs (E) and (I); and
(B) by redesignating subparagraphs (F), (G), (H),
and (J) as subparagraphs (E), (F), (G), and (H),
respectively.
SEC. 804. AMENDMENT TO SECURITY FREEZES FOR CONSUMER REPORTS.
(a) In General.--Section 605A(i) of the Fair Credit Reporting Act
(15 U.S.C. 1681c-1(i)) is amended--
(1) by amending the subsection heading to read as follows:
``Security Freezes for Consumer Reports'';
(2) in paragraph (3)(E), by striking ``Upon receiving'' and
all that follows through ``subparagraph (C),'' and inserting
``Upon receiving a direct request from a consumer for a
temporary removal of a security freeze, a consumer reporting
agency shall'';
(3) by adding at the end the following:
``(7) Relation to state law.--This subsection does not
modify or supersede the laws of any State relating to security
freezes or other similar actions, except to the extent those
laws are inconsistent with any provision of this title, and
then only to the extent of the inconsistency. For purposes of
this subsection, a term or provision of a State law is not
inconsistent with the provisions of this subsection if the term
or provision affords greater protection to the consumer than
the protection provided under this subsection as determined by
the Bureau.''.
(b) Amendment to Webpage Requirements.--Section 605A(i)(6)(A) of
the Fair Credit Reporting Act (15 U.S.C. 1681c-1(i)(6)(A)) is amended--
(1) in clause (ii), by striking ``initial fraud alert'' and
inserting ``1-year fraud alert'';
(2) in clause (iii), by striking ``extended fraud alert''
and inserting ``7-year fraud alert''; and
(3) in clause (iv), by striking ``fraud''.
(c) Amendment to Exceptions for Certain Persons.--Section
605A(i)(4)(A) of the Fair Credit Reporting Act (15 U.S.C. 1681c-
1(i)(4)(A)) is amended to read as follows:
``(A) A person, or the person's subsidiary,
affiliate, agent, subcontractor, or assignee with whom
the consumer has, or prior to assignment had, an
authorized account, contract, or debtor-creditor
relationship for the purposes of reviewing the active
account or collecting the financial obligation owed on
the account, contract, or debt.''.
(d) Effective Date.--The amendments made by subsection (a) shall
take effect on the date of the enactment of this Act.
SEC. 805. CLARIFICATION OF INFORMATION TO BE INCLUDED WITH AGENCY
DISCLOSURES.
Section 609(c)(2) of the Fair Credit Reporting Act (15 U.S.C.
1681g(c)(2)) is amended--
(1) in subparagraph (B)--
(A) by striking ``consumer reporting agency
described in section 603(p)'' and inserting ``consumer
reporting agency described in subsection (p) or (x) of
section 603'';
(B) by striking ``the agency'' and inserting ``such
an agency''; and
(C) by inserting ``and an Internet website
address'' after ``hours''; and
(2) in subparagraph (E), by striking ``outdated under
section 605 or'' and inserting ``outdated, required to be
removed, or''.
SEC. 806. PROVIDES ACCESS TO FRAUD RECORDS FOR VICTIMS.
Section 609(e) of the Fair Credit Reporting Act (15 U.S.C.
1681g(e)) is amended--
(1) in paragraph (1)--
(A) by striking ``resulting from identity theft'';
(B) by striking ``claim of identity theft'' and
inserting ``claim of fraudulent activity''; and
(C) by striking ``any transaction alleged to be a
result of identity theft'' and inserting ``any
fraudulent transaction'';
(2) in paragraph (2)(B)--
(A) by striking ``identity theft, at the election
of the business entity'' and inserting ``fraudulent
activity'';
(B) by amending clause (i) to read as follows:
``(i) a copy of an identity theft report;
or''; and
(C) by amending clause (ii) to read as follows:
``(ii) an affidavit of fact that is
acceptable to the business entity for that
purpose.'';
(3) in paragraph (3), by striking ``identity theft'' and
inserting ``fraudulent activity'';
(4) by striking paragraph (8) and redesignating paragraphs
(9) through (13) as paragraphs (8) through (12), respectively;
and
(5) in paragraph (10) (as so redesignated), by striking
``or a similar crime'' and inserting ``, fraud, or a related
crime''.
SEC. 807. REQUIRED BUREAU TO SET PROCEDURES FOR REPORTING IDENTITY
THEFT, FRAUD, AND OTHER RELATED CRIME.
Section 621(f)(2) of the Fair Credit Reporting Act (15 U.S.C.
1681s(f)(2)) is amended--
(1) in the paragraph heading, by striking ``Model form''
and inserting ``Standardized affidavit'';
(2) by striking ``The Commission'' and inserting ``The
Bureau'';
(3) by striking ``model form'' and inserting ``standardized
affidavit'';
(4) by inserting after ``identity theft'' the following:
``, fraud, or a related crime, or otherwise are harmed by the
unauthorized disclosure of the consumer's financial or
personally identifiable information,''; and
(5) by striking ``fraud.'' and inserting ``identity theft,
fraud, or other related crime. Such standardized affidavit and
procedures shall not include a requirement that a consumer
obtain a police report.''.
SEC. 808. ESTABLISHES THE RIGHT TO FREE CREDIT MONITORING AND IDENTITY
THEFT PROTECTION SERVICES FOR CERTAIN CONSUMERS.
(a) Enforcement of Credit Monitoring for Servicemembers.--
(1) In general.--Subsection (k) of section 605A (15 U.S.C.
1681c-1(a)) is amended by striking paragraph (4).
(2) Effective date.--This subsection and the amendment made
by this subsection shall take effect on the date of the
enactment of this Act.
(b) Free Credit Monitoring and Identity Theft Protection Services
for Certain Consumers.--Subsection (k) of section 605A (15 U.S.C.
1681c-1), is amended to read as follows:
``(k) Credit Monitoring and Identity Theft Protection Services.--
``(1) In general.--Upon the direct request of a consumer, a
consumer reporting agency described in section 603(p) that
maintains a file on the consumer and has received appropriate
proof of the identity of the requester (as described in section
1022.123 of title 12, Code of Federal Regulations) shall
provide the consumer with credit monitoring and identity theft
protection services not later than 1 business day after
receiving such request sent by postal mail, toll-free
telephone, or secure electronic means as established by the
agency.
``(2) Fees.--
``(A) Classes of consumers.--The Bureau may
establish classes of consumers eligible to receive
credit monitoring and identity theft protection
services free of charge.
``(B) No fee.--A consumer reporting agency
described in section 603(p) may not charge a consumer a
fee to receive credit monitoring and identity theft
protection services if the consumer or a representative
of the consumer--
``(i) asserts in good faith a suspicion
that the consumer has been or is about to
become a victim of identity theft, fraud, or a
related crime, or harmed by the unauthorized
disclosure of the consumer's financial or
personally identifiable information;
``(ii) is unemployed and intends to apply
for employment in the 60-day period beginning
on the date on which the request is made;
``(iii) is a recipient of public welfare
assistance;
``(iv) is an active duty uniformed consumer
or a member of the National Guard (as defined
in section 101(c) of title 10, United States
Code);
``(v) is 65 years of age or older; or
``(vi) is a member of a class established
by the Bureau under subparagraph (A).
``(3) Bureau rulemaking.--The Bureau shall issue
regulations--
``(A) to define the scope of credit monitoring and
identity theft protection services required under this
subsection; and
``(B) to set a fair and reasonable fee that a
consumer reporting agency may charge a consumer (other
than a consumer described under paragraph (2)(B)) for
such credit monitoring and identity theft protection
services.
``(4) Relation to state law.--This subsection does not
modify or supersede of the laws of any State relating to credit
monitoring and identity theft protection services or other
similar actions, except to the extent those laws are
inconsistent with any provision of this title, and then only to
the extent of the inconsistency. For purposes of this
subsection, a term or provision of a State law is not
inconsistent with the provisions of this subsection if the term
or provision affords greater protection to the consumer than
the protection provided under this subsection as determined by
the Bureau.''.
(c) Rulemaking.--Not later than the end of the 2-year period
beginning on the date of enactment of this Act, the Director of the
Bureau of Consumer Financial Protection shall issue final rules to
carry out the amendment made by subsection (b).
SEC. 809. ENSURES REMOVAL OF INQUIRIES RESULTING FROM IDENTITY THEFT,
FRAUD, OR OTHER RELATED CRIME FROM CONSUMER REPORTS.
Section 605(a) of the Fair Credit Reporting Act (15 U.S.C.
1681c(a)), as amended by section 403, is further amended by adding at
the end the following:
``(17) Information about inquiries made for a credit report
based on requests that the consumer reporting agency verifies
were initiated as the result of identity theft, fraud, or other
related crime.''.
TITLE IX--MISCELLANEOUS
SEC. 901. DEFINITIONS.
Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a), as
amended by section 302, is further amended by adding at the end the
following:
``(dd) Definitions Related to Days.--
``(1) Calendar day; day.--The term `calendar day' or `day'
means a calendar day, excluding any federally recognized
holiday.
``(2) Business day.--The term `business day' means a day
between and including Monday to Friday, and excluding any
federally recognized holiday.''.
SEC. 902. TECHNICAL CORRECTION RELATED TO RISK-BASED PRICING NOTICES.
Section 615(h)(8) of the Fair Credit Reporting Act (15 U.S.C.
1681m) is amended--
(1) in subparagraph (A), by striking ``this section'' and
inserting ``this subsection''; and
(2) in subparagraph (B), by striking ``This section'' and
inserting ``This subsection''.
SEC. 903. FCRA FINDINGS AND PURPOSE; VOIDS CERTAIN CONTRACTS NOT IN THE
PUBLIC INTEREST.
(a) FCRA Findings and Purpose.--Section 602 of the Fair Credit
Reporting Act (15 U.S.C. 1681(a)) is amended--
(1) in subsection (a)--
(A) by amending paragraph (1) to read as follows:
``(1) Many financial and non-financial decisions affecting
consumers' lives depend upon fair, complete, and accurate credit
reporting. Inaccurate and incomplete credit reports directly impair the
efficiency of the financial system and undermine the integrity of using
credit reports in other circumstances, and unfair credit reporting and
credit scoring methods undermine the public confidence which is
essential to the continued functioning of the financial services system
and the provision of many other consumer products and services.''; and
(B) in paragraph (4), by inserting after
``agencies'' the following: ``, furnishers, and credit
scoring developers''; and
(2) in subsection (b)--
(A) by striking ``It is the purpose of this title
to require'' and inserting the following: ``The purpose
of this title is the following:
``(1) To require''; and
(B) by adding at the end the following:
``(2) To prohibit any practices and procedures with respect
to credit reports and credit scores that are not in the public
interest.''.
(b) Voiding of Certain Contracts Not in the Public Interest.--The
Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended by
section 703, is further amended--
(1) by adding at the end the following new section:
``Sec. 634. Voiding of certain contracts not in the public interest
``(a) In General.--Any provision contained in a contract that
requires a person to not follow a provision of this title, that is
against the public interest, or that otherwise circumvents the purposes
of this title shall be null and void.
``(b) Rule of Construction.--Nothing in subsection (a) shall be
construed as affecting other provisions of a contract that are not
described under subsection (a).''; and
(2) in the table of contents for such Act, by inserting
after the item relating to section 633 the following new item:
``634. Voiding of certain contracts not in the public interest.''.
SEC. 904. GAO STUDY ON THE USE OF CREDIT IN HOUSING DETERMINATIONS.
(a) Study.--The Comptroller General of the United States shall
carry out a study of the use of consumer reports and credit scores in
housing determinations to determine whether consumer reports or credit
scores are being used as tools to perform the equivalent of banned red-
lining.
(b) Contents of Study.--In carrying out the study required under
subsection (a), the Comptroller General shall--
(1) examine both rental applications and mortgage
applications; and
(2) include a demographic breakdown by race, gender, age,
sexual orientation, city/suburban/rural, socioeconomic status,
and any other demographic that the Comptroller General
determines appropriate.
(c) Report.--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).
SEC. 905. GAO STUDY ON THE EFFECTS OF CREDIT SCORES IMPACTED BY A
STUDENT BORROWER'S DEFAULTED OR DELINQUENT PRIVATE
EDUCATION LOAN.
(a) Study.--The Comptroller General of the United States shall
carry out a study on how credit scores impacted by a student borrower's
defaulted or delinquent private education loan impacts applying for
future loans, including information on the treatment of different
demographic populations.
(b) Report.--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).
SEC. 906. GAO STUDY ON CONSUMER REPORTING AGENCY COMPLIANCE WITH
CONSENT ORDERS.
(a) Study.--The Comptroller General of the United States shall
carry out a study of the compliance by consumer reporting agencies that
compile and maintain files on consumers on a nationwide basis with
consent orders, and the impact such compliance has on consumers.
(b) Report.--Not later than the end of the 180-day period beginning
on the date of enactment of this Act, the Comptroller General shall
issue a report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate containing all findings and determinations made
in carrying out the study required under subsection (a).
(c) Definitions.--In this section, the terms ``consumer'' and
``consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis'' have the meaning given those terms,
respectively, under section 603 of the Fair Credit Reporting Act.
SEC. 907. PROTECTIONS FOR ACTIVE DUTY UNIFORMED CONSUMER.
(a) Definitions.--Section 603 of the Fair Credit Reporting Act (15
U.S.C. 1681a) is amended--
(1) in subsection (q), by amending paragraph (1) to read as
follows:
``(1) Active duty uniformed consumer.--The term `active
duty uniformed consumer' means a consumer who is--
``(A) in military service and on active service (as
defined in section 101(d) of title 10, United States
Code); or
``(B) a member of the uniformed services (as
defined in section 101(a) of title 10, United States
Code) who is not a member of the armed forces and is on
active service.''; and
(2) by inserting after subsection (dd) (as added by section
901) the following:
``(ii) Extended Active Duty Uniformed Consumer.--The term `extended
active duty uniformed consumer' means an active duty uniformed consumer
that is deployed--
``(1) in a combat zone (as defined under section 112(c) of
the Internal Revenue Code of 1986); or
``(2) aboard a United States vessel.''.
(b) Prohibition on Including Certain Adverse Information in
Consumer Reports.--Section 605 of the Fair Credit Reporting Act (15
U.S.C. 1681c) is amended--
(1) in subsection (a), as amended by section 809, by adding
at the end the following:
``(19) Any item of adverse information about a consumer, if
the action or inaction that gave rise to the item occurred
while the consumer was an extended active duty uniformed
consumer.''; and
(2) by inserting after subsection (h) (as added by section
705) the following:
``(i) Notice of Status as an Extended Active Duty Uniformed
Consumer.--With respect to an item of adverse information about a
consumer, if the action or inaction that gave rise to the item occurred
while the consumer was an extended active duty uniformed consumer, the
consumer may provide appropriate proof, including official orders, to a
consumer reporting agency that the consumer was an extended active duty
uniformed consumer at the time such action or inaction occurred. The
consumer reporting agency shall promptly delete that item of adverse
information from the file of the consumer and notify the consumer and
the furnisher of the information of the deletion.''.
(c) Communications Between the Consumer and Consumer Reporting
Agencies.--Section 605A of the Fair Credit Reporting Act (15 U.S.C.
1681c-1) is amended--
(1) in subsection (c), as amended by section 803, by adding
at the end the following:
``(2) Negative information alert.--Any time a consumer
reporting agency receives an item of adverse information about
a consumer, if the consumer has provided appropriate proof that
the consumer is an extended active duty uniformed consumer, the
consumer reporting agency shall promptly notify the consumer--
``(A) that the agency has received such item of
adverse information, along with a description of the
item; and
``(B) the method by which the consumer can dispute
the validity of the item.
``(3) Contact information for extended active duty
uniformed consumers.--With respect to any consumer that has
provided appropriate proof to a consumer reporting agency that
the consumer is an extended active duty uniformed consumer, if
the consumer provides the consumer reporting agency with
separate contact information to be used when communicating with
the consumer while the consumer is an extended active duty
uniformed consumer, the consumer reporting agency shall use
such contact information for all communications while the
consumer is an extended active duty uniformed consumer.''; and
(2) in subsection (e), by amending paragraph (3) to read as
follows:
``(3) subparagraphs (A) and (B) of subsection (c)(1), in
the case of a referral under subsection (c)(1)(C).''.
(d) Conforming Amendment.--The Fair Credit Reporting Act (15 U.S.C.
1681 et seq.) is amended by striking ``active duty military'' each
place such term appears and inserting ``active duty uniformed''.
(e) Sense of Congress.--It is the sense of Congress that any person
making use of a consumer report containing an item of adverse
information should, if the action or inaction that gave rise to the
item occurred while the consumer was an extended active duty uniformed
consumer, take such fact into account when evaluating the
creditworthiness of the consumer.
SEC. 908. POSITIVE CREDIT REPORTING PERMITTED.
(a) In General.--Section 623 of the Fair Credit Reporting Act (15
U.S.C. 1681s-2), as amended by section 103, is further amended by
adding at the end the following new subsection:
``(g) Full-File Credit Reporting.--
``(1) In general.--Subject to the requirements of
paragraphs (2) through (5) and notwithstanding any other
provision of law, a person that has obtained the written
authorization of a consumer may furnish to a consumer reporting
agency information relating to the performance of a consumer in
making payments--
``(A) under a lease agreement with respect to a
dwelling; or
``(B) pursuant to a contract for services provided
by a utility or telecommunication firm.
``(2) Limitations.--
``(A) Withheld payments due to habitability or
sanitary conditions.--No person shall furnish or
threaten to furnish negative information relating to
the performance of a consumer in making payments under
a lease agreement with respect to a dwelling if the
consumer has withheld payment pursuant to--
``(i) any right or remedy for breach of the
warranty of habitability; or
``(ii) any violation of a Federal, State,
or municipal law, code, or regulation regarding
sanitary conditions.
``(B) Services provided by a utility or
telecommunication firm.--Information about a consumer's
usage of any services provided by a utility or
telecommunication firm may be furnished to a consumer
reporting agency only to the extent that such
information relates to--
``(i) payment by the consumer for such
services; or
``(ii) other terms of the provision of such
services to the consumer, including any
deposit, discount, or conditions for
interruption or termination of such services.
``(3) Payment plan.--A utility or telecommunication firm
may not report payment information to a consumer reporting
agency with respect to an outstanding balance of a consumer as
late if--
``(A) the utility or telecommunication firm and the
consumer have entered into a payment plan (including a
deferred payment agreement, an arrearage management
program, or a debt forgiveness program) with respect to
such outstanding balance; and
``(B) the consumer is meeting the obligations of
the payment plan, as determined by the utility or
telecommunication firm.
``(4) Prohibition on use by debt collectors.--A debt
collector (as defined in section 803(6) of the Fair Debt
Collection Practices Act) may not use the information described
in paragraph (1).
``(5) Relation to state law.--Notwithstanding section 625,
this subsection shall not preempt any law of a State with
respect to furnishing to a consumer reporting agency
information relating to the performance of a consumer in making
payments pursuant to a lease agreement with respect to a
dwelling or a contract for a utility or telecommunications
service. For purposes of this paragraph, the term `law of a
State' shall include all laws, decisions, rules, regulations,
or other State action having the effect of law, as issued by a
State, any political subdivisions thereof, or any agency or
instrumentality of either the State or a political subdivision
thereof.
``(6) Utility or telecommunication firm defined.--In this
subsection, the term `utility or telecommunication firm'--
``(A) means an entity that provides utility
services to the public through pipe, wire, landline,
wireless, cable, or other connected facilities, or
radio, electronic, or similar transmission (including
the extension of such facilities); and
``(B) includes an entity that provides natural gas
or electric service to consumers.''.
(b) GAO Study and Report.--Not later than 2 years after the date of
enactment of this Act, the Comptroller General of the United States
shall submit to Congress a report on the impact on consumers of
furnishing information pursuant to subsection (g) of section 623 of the
Fair Credit Reporting Act (15 U.S.C. 1681s-2), as added by subsection
(a).
SEC. 909. SENSE OF CONGRESS.
It is the sense of Congress that efforts to enhance cybersecurity
and implement routine security updates of databases maintained by the
nationwide consumer reporting agencies that contain sensitive consumer
data, including the credit history and personal information of millions
of Americans, is critical to the national interest of the United
States.
SEC. 910. CYBERSECURITY SUPERVISION AND EXAMINATION OF LARGE CONSUMER
REPORTING AGENCIES.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.), as amended by section 706, is further amended by adding at the
end the following:
``SEC. 638. CYBERSECURITY SUPERVISION AND EXAMINATION OF LARGE CONSUMER
REPORTING AGENCIES.
``(a) In General.--Consumer reporting agencies described under
section 603(p) shall be subject to cybersecurity supervision and
examination by the Bureau.
``(b) Minimum Training Requirements.--Consumer reporting agencies
described under section 603(p) shall meet minimum training and ongoing
certification requirements with respect to cybersecurity at regular
intervals, as established by the Director of the Bureau.''.
(b) Clerical Amendment.--The table of contents of the Fair Credit
Reporting Act, as amended by section 706, is further amended by adding
at the end the following:
``638. Cybersecurity supervision and examination of large consumer
reporting agencies.''.
Passed the House of Representatives January 29, 2020.
Attest:
CHERYL L. JOHNSON,
Clerk.