[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5180 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 5180
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
August 8, 2023
Ms. Tlaib introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
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. Prohibits the appearance of medical debt on 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 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. Requires 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 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.
(B) 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.
(C) Consumer reporting agencies (``CRAs'') have a
statutory obligation to verify independently the
accuracy and completeness of information included on
the reports that they provide.
(D) 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, this
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.
(E) 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.
(F) Current industry practices impose an unfair
burden of proof on consumers trying to fix errors on
their reports.
(G) Consumer reports containing inaccurate or
incomplete credit information also undermine the
ability of creditors and lenders to effectively and
accurately underwrite and price credit.
(H) 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 Bureau of Consumer
Financial Protection (``Consumer Bureau'') began
accepting consumer complaints about credit reporting
shortly after its inception.
(I) The Consumer Bureau receives hundreds of
thousands of credit or consumer reporting complaints
each year, making credit reporting consistently the
most-complained-about subject matter on which the
Consumer Bureau accepts consumer complaints.
(J) The majority of credit reporting complaints
received by the Consumer Bureau involve incorrect
information on consumer reports, with consumers
frequently expressing their frustrations about the
burdensome and time-consuming process to disputing
items.
(K) Other common types of credit reporting
complaints submitted to the Consumer Bureau relate to
the improper use of a report, trouble obtaining a
report or credit score, CRAs' investigations, and
credit monitoring or identity protection.
(L) 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.
(M) 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) Many private education loan borrowers, who have
sought to negotiate a modified repayment plan when they
were experiencing a period of financial distress, have
been unable to get assistance from their loan holders,
which often results in them defaulting on their loans.
(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. This 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. Borrowers who are
unable to make payments often default or have their
accounts sent to collections before they are even able
to graduate.
(3) Deceptive practices at certain proprietary education
institutions and career education programs.--
(A) Observers have repeatedly noted the pervasive
problem of for-profit schools 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.
(B) 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 9 percent of the total higher education
population but a startling 46 percent of all Federal
student loan defaults.
(C) A disproportionate number of for-profit
students are low-income and people of color. For-profit
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.
(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) 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, according to findings from the
Consumer Bureau.
(C) The Consumer Bureau has 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. Unlike with
most credit products or 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 presence of medical collections is less
predictive of future defaults or serious delinquencies
than the presence of a nonmedical collection.
(G) Medical debt is regularly incurred
involuntarily, for necessary and often life-saving
medical services, and is therefore unlike other debt.
(H) Given the research showing there is little
predictive value in medical debt information, and the
unique nature of medical debt, the reporting of medical
debt on credit reports should be prohibited.
(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, 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) Domestic abuse survivors, seeking to remove
adverse information stemming from financial abuse by
contacting their furnishers directly, often 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 three nationwide CRAs have faced millions
of dollars in fines and civil monetary penalties for
deceptive practices, including enticing 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. Codifying the duties
of CRAs is an appropriate way to ensure these companies
do not engage in such misleading behaviors in the
future.
(B) 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.
(C) 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. 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) Children are much 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. Nationwide Federal law to address this
issue is lacking.
(D) Each year, more than 10 million American
consumers are victims of identity theft, costing them
roughly $20 billion annually.
(E) American consumers spend billions of dollars
annually on products aimed at protecting their
identity. 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 if
deletion is required by section 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 if deletion is
required by section 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 605E, antedates the report by
45 calendar days; or
``(B) brought by a lender with respect to a covered
residential mortgage loan where the consumer has
obtained relief pursuant to section 605D 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. PROHIBITS THE APPEARANCE OF MEDICAL DEBT ON CONSUMER REPORTS.
(a) Prohibition on Reporting Medical Procedures.--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 information related to a debt arising from a
medical procedure.''.
(b) 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 605C the following new
section:
``Sec. 605D. 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 605C the following new item:
``605D. 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 605D the following new section:
``Sec. 605E. 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 605D (as added by section 104) the following new item:
``605E. 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 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 605E the following:
``Sec. 605F. Adverse information in cases of financial abuse
``(a) In General.--A consumer reporting agency may not furnish a
consumer report containing any adverse item of information about a
consumer that resulted from financial abuse if the consumer has
provided documentation of financial abuse to the consumer reporting
agency.
``(b) Rulemaking.--
``(1) In general.--Not later than 180 days after the date
of the enactment of this section, the Director shall issue
rules to implement this section.
``(2) Contents.--Any rule issued pursuant to paragraph (1)
shall establish a method by which consumers shall submit
documentation of financial abuse to consumer reporting
agencies.
``(c) Definitions.--In this section:
``(1) Documentation of financial abuse.--The term
`documentation of financial abuse' means--
``(A) documentation of--
``(i) a determination by a Federal or State
government entity that a consumer is a victim
of domestic violence, dating violence, abuse in
later life, or child abuse and neglect;
``(ii) a determination by a court of
competent jurisdiction that a consumer is a
victim of domestic violence, dating violence,
abuse in later life, or child abuse and
neglect;
``(iii) written verification from a
Qualified Third Party to whom the consumer
reported financial abuse; or
``(iv) any other documentation the Bureau
may prescribe; and
``(B) documentation that identifies items of
adverse information that should not be furnished by a
consumer reporting agency because the items resulted
from the financial abuse of which such consumer is a
victim.
``(2) Financial abuse.--The term `financial abuse' has the
meaning given `economic abuse' (as defined in 40002 of the
Violence Against Women Act of 1994), except such term is not
limited to the context of domestic violence, dating violence,
and abuse in later life.
``(3) Qualified third party.--The term `Qualified Third
Party' means--
``(A) a law enforcement officer;
``(B) a person employed by or working on behalf of
a government agency or nonprofit organization that
provides services to victims of domestic violence,
child abuse or neglect, elder abuse, economic abuse, or
abuse in later life;
``(C) a member of the clergy of a church, religious
society, or denomination;
``(D) a physician, psychiatrist, psychologist,
social worker, registered nurse, therapist, or clinical
professional counselor licensed to practice in any
State; or
``(E) any other person as determined by the
Director of the Bureau.
``(4) Other definitions.--The terms `abuse in later life',
`child abuse and neglect', `dating violence', `domestic abuse',
`economic abuse', and `elder abuse'--
``(A) have the meanings given, respectively, in
section 40002 of the Violence Against Women Act of
1994; or
``(B) if such a term, as defined by a State,
affords greater protection to an individual than the
protection provided under this section, have the
meanings given by the relevant State.''.
(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 605E (as added by section 105) the following new item:
``605F. Adverse information in cases of financial abuse.''.
(c) Effective Date.--The amendments made by this section shall
apply on the date that is 30 days after the date on which the Director
of the Bureau of Consumer Financial Protection issues a rule pursuant
to section 605F(b) of the Fair Credit Reporting Act, as added by this
section.
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, any information in a consumer report
concerning the consumer's participation in credit restoration
or rehabilitation under section 605D, 605E, or 605F; or
``(2) treat negatively, in a manner adverse to a consumer's
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 605D, 605E, or 605F.
``(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 605D, 605E, or 605F; 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 605D, 605E, or 605F.
``(c) 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
605D, 605E, or 605F 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) by inserting ``1-year'' before ``fraud
alert'';
(ii) in subparagraph (A), by inserting
``and credit score'' after ``file''; and
(iii) 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), 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 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) by redesignating paragraphs (1), (2), and (3),
as subparagraphs (A), (B), and (C), respectively (and
conforming the margins accordingly);
(B) by striking ``Upon the direct request'' and
inserting:
``(1) In general.--Upon the direct request''; and
(C) by adding at the end the following new
paragraph:
``(2) Access to free reports and 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 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)--
(A) by inserting ``1-year or 7-year'' before
``fraud alert''; and
(B) 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).'';
(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 605D, 605E,
or 605F,'' 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 Web Page 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.''.
(d) 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. REQUIRES 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.''.
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