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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2622 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 2622

  To amend the Fair Credit Reporting Act, to prevent identity theft, 
   improve resolution of consumer disputes, improve the accuracy of 
consumer records, make improvements in the use of, and consumer access 
            to, credit information, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 26, 2003

Mr. Bachus (for himself, Ms. Hooley of Oregon, Mrs. Biggert, Mr. Moore, 
 Mr. LaTourette, Mr. Kanjorski, Mr. Castle, Mrs. Maloney, Mr. Shadegg, 
 Mr. Ford, Mr. Tiberi, Mr. Hinojosa, Mr. Hensarling, Mr. Crowley, Mr. 
Sessions, Mr. Ross, Mr. Matheson, Mr. Davis of Alabama, Mr. Baker, Mr. 
  King of New York, Mr. Lucas of Oklahoma, Mr. Lucas of Kentucky, Mr. 
Ney, Mrs. Kelly, Mr. Jones of North Carolina, Mr. Israel, Ms. Hart, Mr. 
 Miller of North Carolina, Mrs. Capito, Mrs. McCarthy of New York, Mr. 
 Barrett of South Carolina, Mr. Feeney, and Ms. Harris) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL

 
  To amend the Fair Credit Reporting Act, to prevent identity theft, 
   improve resolution of consumer disputes, improve the accuracy of 
consumer records, make improvements in the use of, and consumer access 
            to, credit information, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Fair and Accurate 
Credit Transactions Act of 2003''.
    (b) Table of Contents.--The table of contents for this Act are as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
        TITLE I--UNIFORM NATIONAL CONSUMER PROTECTION STANDARDS

Sec. 101. Uniform national consumer protections standards made 
                            permanent.
                  TITLE II--IDENTITY THEFT PREVENTION

Sec. 201. Investigating changes of address.
Sec. 202. Fraud alerts.
Sec. 203. Truncation of credit card and debit card account numbers.
Sec. 204. Summary of rights of identity theft victims.
Sec. 205. Blocking of information resulting from identity theft.
Sec. 206. Establishment of procedures for depository institutions to 
                            identify possible instances of identity 
                            theft.
          TITLE III--IMPROVING RESOLUTION OF CONSUMER DISPUTES

Sec. 301. Coordination of consumer complaint investigations.
Sec. 302. Notice of dispute through reseller.
Sec. 303. Prompt investigation of disputed consumer information.
            TITLE IV--IMPROVING ACCURACY OF CONSUMER RECORDS

Sec. 401. Reconciling addresses.
Sec. 402. Prevention of repollution of consumer reports.
Sec. 403. Notice by users with respect to fraudulent information.
     TITLE V--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT 
                              INFORMATION

Sec. 501. Free reports annually.
Sec. 502. Summary of credit scores.
Sec. 503. Simpler and easier method for consumers to use notification 
                            system.
        TITLE VI--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS

Sec. 601. Certain employee investigation communications excluded from 
                            definition of consumer report.

SEC. 2. DEFINITIONS.

    Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is 
amended by adding at the end the following new subsections:
    ``(r) Reseller.--The term `reseller' means a consumer reporting 
agency that--
            ``(1) acts as a reseller of information by assembling and 
        merging information contained in the database of another 
        consumer reporting agency or multiple consumer reporting 
        agencies; and
            ``(2) does not maintain a permanent database of the 
        assembled or merged information from which new consumer reports 
        are produced.
    ``(s) Other Definitions.--
            ``(1) Board; credit; creditor.--The terms `Board', `credit' 
        and `creditor' have the same meanings as in section 103 of the 
        Truth in Lending Act.
            ``(2) Electronic fund transfer.--The term `electronic fund 
        transfer' has the same meaning as in section 903 of the 
        Electronic Fund Transfer Act.
            ``(3) Federal banking agency.--The term `Federal banking 
        agency' has the same meaning as in section 3 of the Federal 
        Deposit Insurance Act.
            ``(4) Identity theft.--The term `identity theft' includes a 
        violation of section 1028, 1029, or 1030 of title 18, United 
        States Code.''.

        TITLE I--UNIFORM NATIONAL CONSUMER PROTECTION STANDARDS

SEC. 101. UNIFORM NATIONAL CONSUMER PROTECTIONS STANDARDS MADE 
              PERMANENT.

    Section 624(d) of the Fair Credit Reporting Act (15 U.S.C. 
1681t(d)) is amended--
            (1) by striking ``Subsections (b) and (c)'' and all that 
        follows through ``do not affect any settlement,'' and inserting 
        ``Subsections (b) and (c) do not affect any settlement,''; and
            (2) by striking ``Consumer Credit Reporting Reform Act of 
        1996'' and all that follows through the period at the end of 
        paragraph (2) and inserting ``Consumer Credit Reporting Reform 
        Act of 1996.''.

                  TITLE II--IDENTITY THEFT PREVENTION

SEC. 201. INVESTIGATING CHANGES OF ADDRESS.

    (a) In General.--Section 605 of the Fair Credit Reporting Act (15 
U.S.C. 1681c) is amended by inserting after subsection (f), the 
following new subsection:
    ``(g) Investigation of Changes of Address.--If a credit card issuer 
receives a request for an additional credit card with respect to an 
existing credit card account within 30 days after receiving 
notification of a change of address for that account, the card issuer 
shall--
            ``(1) notify the cardholder of the request--
                    ``(A) at both the new address and the former 
                address of the cardholder; or
                    ``(B) by such other means of communication as the 
                cardholder and the credit card issuer previously agreed 
                to,
        in accordance with reasonable policies and procedures 
        established by the card issuer pursuant to regulations which 
        the Board shall prescribe; and
            ``(2) provide to the cardholder a means of promptly 
        reporting incorrect changes.''.
    (b) Clerical Amendments.--
            (1) The heading for section 605 of the Fair Credit 
        Reporting Act is amended to read as follows:
``Sec. 605. Requirements relating to information contained in consumer 
              reports and to identity theft.''.
            (2) The table of sections for title VI of the Consumer 
        Credit Protection Act is amended by striking the item relating 
        to section 605 and inserting the following new item:

``605. Requirements relating to information contained in consumer 
                            reports and to identity theft.''.

SEC. 202. FRAUD ALERTS.

    Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is 
amended by adding at the end the following new subsection:
    ``(i) Fraud Alerts.--
            ``(1) In general.--Upon the request of a consumer who 
        asserts in good faith a suspicion that the consumer has been or 
        is about to become a victim of fraud or related crime, and upon 
        receiving proper identification, a consumer reporting agency 
        shall include a fraud alert in the file of that consumer.
            ``(2) Notice to users.--A consumer reporting agency shall 
        notify each person procuring a consumer report with respect to 
        a consumer of the existence of a fraud alert in effect for such 
        consumer, regardless of whether a full credit report, credit 
        score, or summary report is requested.
            ``(3) Prohibition.--No user of a consumer report with a 
        fraud alert may issue or extend credit in the name of the 
        consumer to a person other than the consumer without attempting 
        to obtain the authorization or preauthorization of the consumer 
        in the manner contained in the fraud alert in effect for such 
        consumer.
            ``(4) Definition.--In this subsection, the term `fraud 
        alert' means a clear and conspicuous statement in the file of a 
        consumer that notifies all prospective users of a consumer 
        report made with respect to that consumer that the consumer 
        does not authorize the issuance or extension of credit in the 
        name of the consumer unless--
                    ``(A) the issuer or extender of such credit first 
                obtains verbal authorization from the consumer at a 
                telephone number designated by the consumer; or
                    ``(B) the issuer of such credit utilizes another 
                reasonable means of communication to obtain the express 
                authorization or preauthorization of the consumer.
            ``(5) Exceptions.--
                    ``(A) Resellers.--
                            ``(i) In general.--The provisions of this 
                        subsection shall not apply to a reseller.
                            ``(ii) Limitation.--A reseller shall 
                        preserve any fraud alert placed on a consumer 
                        report by another consumer reporting agency.
                    ``(B) Exempt institutions.--The requirement under 
                this subsection to place a fraud alert in a consumer 
                file shall not apply to--
                            ``(i) a check services company, which 
                        issues authorizations for the purpose of 
                        approving or processing negotiable instruments, 
                        electronic funds transfers, or similar methods 
                        of payments; or
                            ``(ii) a deposit account information 
                        service company, which issues reports regarding 
                        account closures due to fraud, substantial 
                        overdrafts, automated teller machine abuse, or 
                        similar negative information regarding a 
                        consumer, to inquiring banks or other financial 
                        institutions for use only in reviewing a 
                        consumer request for a demand deposit account 
                        at the inquiring bank or financial 
                        institution.''.

SEC. 203. TRUNCATION OF CREDIT CARD AND DEBIT CARD ACCOUNT NUMBERS.

    (a) In General.--Except as provided in this section, no person, 
firm, partnership, association, corporation, or limited liability 
company that accepts credit cards or debit cards for the transaction of 
business shall print more than the last 4 digits of the card account 
number or the expiration date upon any receipt provided to the 
cardholder at the point of the sale or transaction.
    (b) Limitation.--This section applies only to receipts that are 
electronically printed, and does not apply to transactions in which the 
sole means of recording the person's credit card or debit card account 
number is by handwriting or by an imprint or copy of the card.
    (c) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Credit card.--The term ``credit card'' has the same 
        meaning as in section 103(k) of the Truth in Lending Act.
            (2) Debit card.--The term ``debit card'' means any card 
        issued by a financial institution to a consumer for use in 
        initiating electronic fund transfers (as defined in section 
        903(6) of the Electronic Fund Transfer Act) from the account 
        (as defined in such Act) of the consumer at such financial 
        institution for the purpose of transferring money between 
        accounts or obtaining money, property, labor, or services.
    (d) Effective Date.--This section shall become effective on--
            (1) January 1, 2007, with respect to any cash register or 
        other machine or device that electronically prints receipts for 
        credit card or debit card transactions that is in use before 
        January 1, 2005; and
            (2) January 1, 2005, with respect to any cash register or 
        other machine or device that electronically prints receipts for 
        credit card or debit card transactions that is first put into 
        use on or after such date.

SEC. 204. SUMMARY OF RIGHTS OF IDENTITY THEFT VICTIMS.

    (a) In General.--Section 609 of the Fair Credit Reporting Act (15 
U.S.C. 1681g) is amended by adding at the end the following new 
subsection:
    ``(d) Summary of Rights of Identity Theft Victims.--A consumer 
reporting agency shall establish reasonable policies and procedures for 
providing consumers who have reason to believe they are the victims of 
fraud or identity theft involving credit, electronic fund transfers, or 
accounts or transactions at or with a financial institution with a 
summary of the rights of consumers under the Consumer Credit Protection 
Act and other provisions of Federal law and procedures for remedying 
the effects of any such alleged offense.''.
    (b) Best Practices.--The Federal Trade Commission shall develop 
guidelines for model policies and model procedures with regard to the 
summary of rights required under the amendment made by subsection (a).

SEC. 205. BLOCKING OF INFORMATION RESULTING FROM IDENTITY THEFT.

    Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is 
amended by inserting after subsection (i) (as added by section 202 of 
this title) the following new subsection:
    ``(j) Block of Information Resulting From Identity Theft.--
            ``(1) Block.--Except as provided in paragraph (3) and not 
        later than 30 days after the date of receipt of proof of the 
        identity of a consumer and an official copy of a police report 
        evidencing the claim of the consumer of identity theft, a 
        consumer reporting agency shall block the reporting of any 
        information identified by the consumer in the file of the 
        consumer resulting from the alleged identity theft, so that the 
        information cannot be reported.
            ``(2) Notification.--A consumer reporting agency shall 
        promptly notify the furnisher of information identified by the 
        consumer under paragraph (1)--
                    ``(A) that the information may be a result of 
                identity theft;
                    ``(B) that a police report has been filed;
                    ``(C) that a block has been requested under this 
                subsection; and
                    ``(D) of the effective date of the block.
            ``(3) Authority to decline or rescind.--
                    ``(A) In general.--A consumer reporting agency may 
                decline to block, or may rescind any block, of consumer 
                information under this subsection if--
                            ``(i) the consumer reporting agency 
                        reasonably determined that--
                                    ``(I) the information was blocked 
                                due to a misrepresentation of fact by 
                                the consumer relevant to the request to 
                                block; or
                                    ``(II) the consumer knowingly 
                                obtained possession of goods, services, 
                                or moneys as a result of the blocked 
                                transaction or transactions, or the 
                                consumer should have known that the 
                                consumer obtained possession of goods, 
                                services, or moneys as a result of the 
                                blocked transaction or transactions; or
                            ``(ii) the consumer agrees that the blocked 
                        information or portions of the blocked 
                        information were blocked in error.
                    ``(B) Notification to consumer.--If the block of 
                information is declined or rescinded under this 
                paragraph, the affected consumer shall be notified 
                promptly, in the same manner as consumers are notified 
                of the reinsertion of information under section 
                611(a)(5)(B).
                    ``(C) Significance of block.--For purposes of this 
                paragraph, if a consumer reporting agency rescinds a 
                block, the presence of information in the file of a 
                consumer prior to the blocking of such information is 
                not evidence of whether the consumer knew or should 
                have known that the consumer obtained possession of any 
                goods, services, or monies as a result of the block.
            ``(4) Exceptions.--
                    ``(A) Negative information data.--A consumer 
                reporting agency shall not be required to comply with 
                this subsection when such agency is issuing information 
                for authorizations, for the purpose of approving or 
                processing negotiable instruments, electronic funds 
                transfers, or similar methods of payment, based solely 
                on negative information, including--
                            ``(i) dishonored checks;
                            ``(ii) accounts closed for cause;
                            ``(iii) substantial overdrafts;
                            ``(iv) abuse of automated teller machines; 
                        or
                            ``(v) other information which indicates a 
                        risk of fraud occurring.
                    ``(B) Resellers.--
                            ``(i) No reseller file.--The provisions of 
                        this subsection do not apply to a consumer 
                        reporting agency if the consumer reporting 
                        agency--
                                    ``(I) is a reseller;
                                    ``(II) is not, at the time of the 
                                request of the consumer under paragraph 
                                (1), otherwise furnishing or reselling 
                                a consumer report concerning the 
                                information identified by the consumer; 
                                and
                                    ``(III) informs the consumer, by 
                                any means, that the consumer may report 
                                the identity theft to the Federal Trade 
                                Commission to obtain consumer 
                                information regarding identity theft.
                            ``(ii) Reseller with file.--The sole 
                        obligation of the consumer reporting agency 
                        under this subsection, with regard to any 
                        request of a consumer under this subsection, 
                        shall be to block the consumer report 
                        maintained by the consumer reporting agency 
                        from any subsequent use if--
                                    ``(I) the consumer, in accordance 
                                with the provisions of paragraph (1), 
                                identifies, to a consumer reporting 
                                agency, information in the file of the 
                                consumer that resulted from identity 
                                theft; and
                                    ``(II) the consumer reporting 
                                agency is a reseller of the identified 
                                information.
                            ``(iii) Notice.--In carrying out its 
                        obligation under clause (ii), the reseller 
                        shall promptly provide a notice to the consumer 
                        of the decision to block the file. Such notice 
                        shall contain the name, address, and telephone 
                        number of each consumer reporting agency from 
                        which the consumer information was obtained for 
resale.''.

SEC. 206. ESTABLISHMENT OF PROCEDURES FOR DEPOSITORY INSTITUTIONS TO 
              IDENTIFY POSSIBLE INSTANCES OF IDENTITY THEFT.

    (a) In General.--Section 605 of the Fair Credit Reporting Act (15 
U.S.C. 1681c) is amended by inserting after subsection (j) (as added by 
section 205 of this title) the following new subsection:
    ``(k) `Red Flag' Guidelines Required.--The Federal banking agencies 
shall jointly establish and maintain guidelines for use by insured 
depository institutions in identifying patterns, practices, and 
specific forms of activity that indicate the possible existence of 
identity theft, and update such guidelines as often as necessary.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect at the end-of the 1-year period beginning the date of the 
enactment of this Act.

          TITLE III--IMPROVING RESOLUTION OF CONSUMER DISPUTES

SEC. 301. COORDINATION OF CONSUMER COMPLAINT INVESTIGATIONS.

    Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is 
amended by adding at the end the following new subsections:
    ``(f) Coordination of Consumer Complaint Investigations.-- Not 
later than 365 days after the date of enactment of the Fair and 
Accurate Credit Transactions Act of 2003, the Federal Trade Commission 
shall prescribe rules in accordance with section 553 of title 5, United 
States Code--
            ``(1) to develop procedures for referral of consumer 
        complaints under this title about identity theft and fraud 
        alerts between and among the consumer reporting agencies and 
        the Commission; and
            ``(2) to develop a model form and model procedures to be 
        used by consumers who are victims of identity fraud for 
        contacting and informing creditors and consumer reporting 
        agencies of the fraud.''.

SEC. 302. NOTICE OF DISPUTE THROUGH RESELLER.

    Section 611(a)(1)(A) of the Fair Credit Reporting Act (15 U.S.C. 
1681i(a)(1)(A)) is amended by inserting ``, or indirectly through a 
reseller,'' after ``notifies the agency directly''.

SEC. 303. PROMPT INVESTIGATION OF DISPUTED CONSUMER INFORMATION.

    (A) Study Required.--The Board of Governors of the Federal Reserve 
System and the Federal Trade Commission shall each study the extent to 
which, and the manner in which, consumer reporting agencies and 
furnishers of consumer information to consumer reporting agencies are 
complying with the procedures, time lines, and requirements under the 
Fair Credit Reporting Act for the prompt investigation of the disputed 
accuracy of any consumer information and the prompt correction or 
deletion, in accordance with such Act, of any inaccurate or incomplete 
information or information that cannot be verified.
    (b) Report Required.--Before the end of the 6-month period 
beginning on the date of the enactment of this Act, the Board of 
Governors of the Federal Reserve System and the Federal Trade 
Commission shall each submit a progress report to the Congress on the 
results of the study required under subsection (a).
    (c) Recommendations.--The report under subsection (b) shall include 
such recommendations as the Board and the Commission determine to be 
appropriate for legislative or administrative action to ensure that--
            (1) consumer disputes with consumer reporting agencies over 
        the accuracy or completeness of information in a consumer's 
        file are promptly and fully investigated and any incorrect, 
        incomplete, or unverifiable information is immediately 
        corrected or deleted;
            (2) furnishers of information to consumer reporting 
        agencies maintain full and prompt compliance with the duties 
        and responsibilities established under section 623 of the Fair 
        Credit Reporting Act; and
            (3) consumer reporting agencies establish and maintain 
        appropriate internal controls and management review procedures 
        for maintaining full and continuous compliance with the 
        procedures, time lines, and requirements under the Fair Credit 
        Reporting Act for the prompt investigation of the disputed 
        accuracy of any consumer information and the prompt correction 
        or deletion, in accordance with such Act, of any inaccurate or 
        incomplete information or information that cannot be verified.
    (d) Definitions.--For purposes of this section, the terms 
``consumer'', ``consumer report'', and ``consumer reporting agency'' 
have the same meaning as in the Fair Credit Reporting Act.

            TITLE IV--IMPROVING ACCURACY OF CONSUMER RECORDS

SEC. 401. RECONCILING ADDRESSES.

    Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is 
amended by inserting after subsection (g) (as added by section 201 of 
this Act) the following new subsection.
    ``(h) Notice of Discrepancy.--In any case in which a person has 
requested a consumer report relating to a consumer, and the request 
includes an address for the consumer that substantially differs from 
the most recent address in the file of the consumer, the consumer 
reporting agency shall--
            ``(1) notify the requester of the discrepancy; and
            ``(2) reconcile or resolve, within 30 days, any substantial 
        variation between the most recent address in the file of the 
        consumer at the agency and the address contained in the 
        request, in accordance with reasonable policies and procedures 
        established by the consumer reporting agency.''.

SEC. 402. PREVENTION OF REPOLLUTION OF CONSUMER REPORTS.

    Section 623(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 
1681s-2(a)(1)) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Information known to include identity theft 
                activity.--A person may not furnish information to any 
                consumer reporting agency that the person knows or has 
                reason to believe has resulted from fraudulent 
                activity, including identity theft.''.

SEC. 403. NOTICE BY USERS WITH RESPECT TO FRAUDULENT INFORMATION.

    Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m) is 
amended by adding at the end the following new subsection:
    ``(e) Notice of Fraudulent Information Relating to Identity 
Theft.--Any assignee or agent, including a debt collector (as defined 
in title VIII), of a person who uses a consumer report on any consumer, 
who learns that any information in such consumer report is fraudulent 
and may be the result of identity theft shall notify the person of such 
fraudulent information.''.

     TITLE V--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT 
                              INFORMATION

SEC. 501. FREE REPORTS ANNUALLY.

    Section 612(c) of the Fair Credit Reporting Act (15 U.S.C. 
1681j(c)) is amended to read as follows:
    ``(c) Free Annual Disclosure.--Upon the request of the consumer, a 
consumer reporting agency shall make all disclosures pursuant to 
section 609 once during any 12-month period without charge to the 
consumer.''.

SEC. 502. SUMMARY OF CREDIT SCORES.

    Section 609(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 
1681g(a)(1)) is amended by striking ``except that nothing'' and all 
that follows through the period at the end and inserting ``including a 
summary of how any individual credit score of the consumer was derived 
and how such score might be improved.''.

SEC. 503. SIMPLER AND EASIER METHOD FOR CONSUMERS TO USE NOTIFICATION 
              SYSTEM.

    (a) In General.--Section 604(e)(5)(A)(i) of the Fair Credit 
Reporting Act (15 U.S.C. 1681b(e)(5)(A)(i)) is amended by inserting 
``in a simple and easy manner and'' after ``notify the agency,''.
    (b) Technical and Conforming Amendment.--Section 615(d) of the Fair 
Credit Reporting Act (15 U.S.C. 1681m(d)) is amended--
            (1) by redesignating paragraphs (2), (3), and (4), as 
        paragraphs (3), (4) and (5); and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Simple and easy notification.--Any statement given 
        the consumer under paragraph (1)(E) shall be in a simple and 
        easy to understand format and shall afford a simple and easy 
        method for the consumer to respond.''.

        TITLE VI--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS

SEC. 601. CERTAIN EMPLOYEE INVESTIGATION COMMUNICATIONS EXCLUDED FROM 
              DEFINITION OF CONSUMER REPORT.

    (a) In General.--Section 603 of the Fair Credit Reporting Act (15 
U.S.C. 1681a) is amended--
            (1) by redesignating subsection (p) as subsection (q); and
            (2) by inserting after subsection (o) the following new 
        subsection:
    ``(p) Exclusion of Certain Communications for Employee 
Investigations.--
            ``(1) Communications described in this subsection.--A 
        communication is described in this subsection if--
                    ``(A) but for subsection (d)(2)(D), the 
                communication would be a consumer report;
                    ``(B) the communication is made to an employer in 
                connection with an investigation of--
                            ``(i) suspected misconduct relating to 
                        employment; or
                            ``(ii) compliance with Federal, State, or 
                        local laws and regulations, the rules of a 
                        self-regulatory organization, or any 
                        preexisting written policies of the employer;
                    ``(C) the communication is not made for the purpose 
                of investigating a consumer's credit worthiness, credit 
                standing, or credit capacity; and
                    ``(D) the communication is not provided to any 
                person except--
                            ``(i) to the employer or an agent of the 
                        employer;
                            ``(ii) to any Federal or State officer, 
                        agency, or department, or any officer, agency, 
                        or department of a unit of general local 
                        government;
                            ``(iii) to any self-regulatory organization 
                        with regulatory authority over the activities 
                        of the employer or employee;
                            ``(iv) as otherwise required by law; or
                            ``(v) pursuant to section 608.
            ``(2) Subsequent disclosure.--After taking any adverse 
        action based in whole or in part on a communication described 
        in paragraph (1), the employer shall disclose to the consumer a 
        summary containing the nature and substance of the 
        communication upon which the adverse action is based, except 
        that the sources of information acquired solely for use in 
        preparing what would be but for subsection (d)(2)(D) an 
        investigative consumer report need not be disclosed.
            ``(3) Self-regulatory organization defined.--For purposes 
        of this subsection, the term `self-regulatory organization' 
        includes any self-regulatory organization (as defined in 
        section 3(a)(26) of the Securities Exchange Act of 1934), any 
        entity established under Title I of the Sarbanes-Oxley Act of 
        2002, any board of trade designated by the Commodity Futures 
        Trading Commission, and any futures association registered with 
        such Commission.''.
    (b) Technical and Conforming Amendment.--Section 603(d)(2)(D) of 
the Fair Credit Reporting Act (15 U.S.C. 1681a(d)(2)(D)) is amended by 
inserting ``or (p)'' after ``subsection (o)''.
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