[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3622 Reported in House (RH)]
<DOC>
Union Calendar No. 287
116th CONGRESS
1st Session
H. R. 3622
[Report No. 116-362]
To amend the Fair Credit Reporting act to restore the impaired credit
of victims of predatory activities and unfair consumer reporting
practices, to expand access to tools to protect vulnerable consumers
from identity theft, fraud, or a related crime, and protect victims
from further harm, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 5, 2019
Ms. Tlaib introduced the following bill; which was referred to the
Committee on Financial Services
December 23, 2019
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on July 5,
2019]
_______________________________________________________________________
A BILL
To amend the Fair Credit Reporting act to restore the impaired credit
of victims of predatory activities and unfair consumer reporting
practices, to expand access to tools to protect vulnerable consumers
from identity theft, fraud, or a related crime, and protect victims
from further harm, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Restoring Unfairly
Impaired Credit and Protecting Consumers Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Effective date.
Sec. 4. General Bureau rulemaking.
TITLE I--RESTORING THE IMPAIRED CREDIT OF VICTIMS OF PREDATORY
ACTIVITIES AND UNFAIR CONSUMER REPORTING PRACTICES
Sec. 101. Shortens the time period that most adverse credit information
stays on consumer reports.
Sec. 102. Mandates the expedited removal of fully paid or settled debt
from consumer reports.
Sec. 103. Imposes restrictions on the appearance of medical collections
on consumer reports and requires the
expedited removal of fully paid or settled
medical collections from consumer reports.
Sec. 104. Provides credit restoration for victims of predatory mortgage
lending and servicing.
Sec. 105. Provides credit relief for private education loans borrowers
who were defrauded or mislead by
proprietary education institution or career
education programs.
Sec. 106. Establishes right for victims of financial abuse to have
adverse information associated with an
abuser's fraudulent activity removed from
their consumer reports.
Sec. 107. Prohibits treatment of credit restoration or rehabilitation
as adverse information.
TITLE II--EXPANDING ACCESS TO TOOLS TO PROTECT VULNERABLE CONSUMERS
FROM IDENTITY THEFT, FRAUD, OR A RELATED CRIME, AND PROTECT VICTIMS
FROM FURTHER HARM
Sec. 201. Identity theft report definition.
Sec. 202. Amendment to protection for files and credit records of
protected consumers.
Sec. 203. Enhances fraud alert protections.
Sec. 204. Amendment to security freezes for consumer reports.
Sec. 205. Clarification of information to be included with agency
disclosures.
Sec. 206. Provides access to fraud records for victims.
Sec. 207. Required Bureau to set procedures for reporting identity
theft, fraud, and other related crime.
Sec. 208. Establishes the right to free credit monitoring and identity
theft protection services for certain
consumers.
Sec. 209. Ensures removal of inquiries resulting from identity theft,
fraud, or other related crime from consumer
reports.
TITLE III--MISCELLANEOUS
Sec. 301. Definitions.
Sec. 302. Technical correction related to risk-based pricing notices.
Sec. 303. FCRA findings and purpose; voids certain contracts not in the
public interest.
SEC. 2. FINDINGS.
Congress finds the following:
(1) General findings.--
(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 February 2017, the Consumer Bureau has
handled approximately 185,717 credit reporting
complaints, making credit reporting consistently the
third most-complained-about subject matter on which the
Consumer Bureau accepts consumer complaints.
(M) In the ``Monthly Complaint Report Volume 20'',
released in February 2017, the Consumer Bureau noted
that 76 percent of credit reporting complaints involved
incorrect information on reports, with consumers
frequently expressing their frustrations about the
burdensome and time-consuming process to disputing
items.
(N) 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.
(O) In the summer 2015 ``Supervisory Highlights'',
the Consumer Bureau noted that one or more of the
largest CRAs failed 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.
(P) 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.
(Q) 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.
(R) 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 January
2009 report titled, ``Automated Injustice: How a
Mechanized Dispute System Frustrates Consumers Seeking
to Fix Errors in Their Credit Reports'', 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 five 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.
(S) 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.
(T) 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) 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.
(3) 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 two-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 four-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.''.
(4) 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 1/5 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-phrased 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.
(5) 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. 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.
(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.
(6) 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.
(7) Protections for consumers' credit information.--
(A) Despite heightened awareness, incidents of ID
theft continue to rise. In February 2015, the FTC
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. 3. 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. 4. GENERAL BUREAU RULEMAKING.
Except as otherwise provided, not later than the end of the 2-year
period beginning on the date of the enactment of this Act, the Bureau
of Consumer Financial Protection shall issue final rules to implement
the amendments made by this Act.
TITLE I--RESTORING THE IMPAIRED CREDIT OF VICTIMS OF PREDATORY
ACTIVITIES AND UNFAIR CONSUMER REPORTING PRACTICES
SEC. 101. SHORTENS THE TIME PERIOD THAT MOST ADVERSE CREDIT INFORMATION
STAYS ON CONSUMER REPORTS.
(a) In General.--Section 605 of the Fair Credit Reporting Act (15
U.S.C. 1681c) is 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, except as provided in
paragraph (8), (10), (11), (12), or (13), or as
required by section 605C, 605D, 605E, or 605F'';
(F) in paragraph (5)--
(i) by striking ``, other than records of
convictions of crimes''; and
(ii) by striking ``seven years'' and
inserting ``4 years, except as required by
section 605C, 605D, 605E, or 605F''; 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 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(d), 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)''.
SEC. 102. MANDATES THE 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 101(a)(1), 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. 103. IMPOSES RESTRICTIONS ON THE APPEARANCE OF MEDICAL COLLECTIONS
ON CONSUMER REPORTS AND REQUIRES THE EXPEDITED REMOVAL OF
FULLY PAID OR SETTLED MEDICAL COLLECTIONS FROM CONSUMER
REPORTS.
(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 102, 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 such Act 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 such Act 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) 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. 104. PROVIDES 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 (42 U.S.C.
5402));
``(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. 105. PROVIDES CREDIT RELIEF FOR PRIVATE EDUCATION LOANS BORROWERS
WHO WERE DEFRAUDED OR MISLEAD BY PROPRIETARY EDUCATION
INSTITUTION OR CAREER EDUCATION PROGRAMS.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.), as amended by section 104, is further amended by inserting after
section 605C the following new section:
``Sec. 605D. Private education loan credit restoration for defrauded
student borrowers who attend certain proprietary
educational institution or career education programs
``(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 623(a)(1) and 630. 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 is amended by inserting after the item relating to
section 605C (as added by section 104) the following new item:
``605D. Private education loan credit restoration for defrauded student
borrowers who attend certain proprietary
educational institution or career education
programs.''.
SEC. 106. ESTABLISHES RIGHT FOR VICTIMS OF FINANCIAL ABUSE TO HAVE
ADVERSE INFORMATION ASSOCIATED WITH AN ABUSER'S
FRAUDULENT ACTIVITY REMOVED FROM THEIR CONSUMER REPORTS.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.), as amended by section 105, is further amended by inserting after
section 605D the following new section:
``Sec. 605E. 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 is amended by inserting after the item relating to
section 605D the following new item:
``605E. Financial abuse prevention.''.
SEC. 107. PROHIBITS TREATMENT OF CREDIT RESTORATION OR REHABILITATION
AS ADVERSE INFORMATION.
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. 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 adding at the
end the following new item:
``630. Prohibition of certain factors related to Federal credit
restoration or rehabilitation.''.
TITLE II--EXPANDING ACCESS TO TOOLS TO PROTECT VULNERABLE CONSUMERS
FROM IDENTITY THEFT, FRAUD, OR A RELATED CRIME, AND PROTECT VICTIMS
FROM FURTHER HARM
SEC. 201. IDENTITY THEFT REPORT DEFINITION.
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, in fact, the
information in the report is false.''.
SEC. 202. 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. 203. ENHANCES 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 ``One-Year'';
(B) in paragraph (1)--
(i) in the paragraph heading, by striking
``Initial alerts'' and inserting ``In
general'';
(ii) by inserting ``or harmed by the
unauthorized disclosure of the consumer's
financial or personally identifiable
information,'' after ``identity theft,'';
(iii) in subparagraph (A), 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 1-year period
described in subparagraph (A) or a subsequent 1-year
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 ``Seven-Year'';
(B) in paragraph (1)--
(i) in subparagraph (B)--
(I) by striking ``5-year period
beginning on the date of such request''
and inserting ``such 7-year period'';
and
(II) by striking ``and'' at the
end;
(ii) in subparagraph (C)--
(I) by striking ``extended'' and
inserting ``7-year''; and
(II) by striking the period at the
end and inserting ``; and''; and
(iii) by adding at the end the following
new subparagraph:
``(D) upon the expiration of such 7-year period or
a subsequent 7-year 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 military
consumer, the consumer reporting agency shall--
``(A) disclose to the active duty military consumer
that the active duty military consumer may request a
free copy of the file and credit score or educational
credit score of the active duty military consumer
pursuant to section 612(d), during each 12-month period
beginning on the date that the activity duty military
alert is requested and ending on the date of the last
day the active duty alert applies to the file of the
active duty military consumer; and
``(B) provide to the active duty military 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. 204. 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''; and
(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 Consumer Credit Protection 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.''.
(e) Effective Date.--The amendments made by subsection (a) shall
take effect on the date of the enactment of this Act.
SEC. 205. CLARIFICATION OF INFORMATION TO BE INCLUDED WITH AGENCY
DISCLOSURES.
Section 609(c)(2) of such 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. 206. 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)(C), 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. 207. 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. 208. 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 amendments
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 military 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.''.
SEC. 209. 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 103, 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 III--MISCELLANEOUS
SEC. 301. DEFINITIONS.
Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is
further amended by adding at the end the following:
``(bb) 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. 302. 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. 303. 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 107, is further amended--
(1) by adding at the end the following new section:
``Sec. 631. 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 adding at the
end the following new item:
``631. Voiding of certain contracts not in the public interest.''.
Union Calendar No. 287
116th CONGRESS
1st Session
H. R. 3622
[Report No. 116-362]
_______________________________________________________________________
A BILL
To amend the Fair Credit Reporting act to restore the impaired credit
of victims of predatory activities and unfair consumer reporting
practices, to expand access to tools to protect vulnerable consumers
from identity theft, fraud, or a related crime, and protect victims
from further harm, and for other purposes.
_______________________________________________________________________
December 23, 2019
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed