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[House Report 108-396]
[From the U.S. Government Publishing Office]

108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-396

======================================================================

 
            FAIR AND ACCURATE CREDIT TRANSACTIONS ACT, 2003

                                _______
                                

               November 21, 2003.--Ordered to be printed

                                _______
                                

  Mr. Oxley, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 2622]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (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, having met, after full and free conference, 
have agreed to recommend and do recommend to their respective 
Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

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 
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Effective dates.

    TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION

                  Subtitle A--Identity Theft Prevention

Sec. 111. Amendment to definitions.
Sec. 112. Fraud alerts and active duty alerts.
Sec. 113. Truncation of credit card and debit card account numbers.
Sec. 114. Establishment of procedures for the identification of possible 
          instances of identity theft.
Sec. 115. Authority to truncate social security numbers.

 Subtitle B--Protection and Restoration of Identity Theft Victim Credit 
                                 History

Sec. 151. Summary of rights of identity theft victims.
Sec. 152. Blocking of information resulting from identity theft.
Sec. 153. Coordination of identity theft complaint investigations.
Sec. 154. Prevention of repollution of consumer reports.
Sec. 155. Notice by debt collectors with respect to fraudulent 
          information.
Sec. 156. Statute of limitations.
Sec. 157. Study on the use of technology to combat identity theft.

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

Sec. 211. Free consumer reports.
Sec. 212. Disclosure of credit scores.
Sec. 213. Enhanced disclosure of the means available to opt out of 
          prescreened lists.
Sec. 214. Affiliate sharing.
Sec. 215. Study of effects of credit scores and credit-based insurance 
          scores on availability and affordability of financial 
          products.
Sec. 216. Disposal of consumer report information and records.
Sec. 217. Requirement to disclose communications to a consumer reporting 
          agency.

    TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION

Sec. 311. Risk-based pricing notice.
Sec. 312. Procedures to enhance the accuracy and integrity of 
          information furnished to consumer reporting agencies.
Sec. 313. FTC and consumer reporting agency action concerning 
          complaints.
Sec. 314. Improved disclosure of the results of reinvestigation.
Sec. 315. Reconciling addresses.
Sec. 316. Notice of dispute through reseller.
Sec. 317. Reasonable reinvestigation required.
Sec. 318. FTC study of issues relating to the Fair Credit Reporting Act.
Sec. 319. FTC study of the accuracy of consumer reports.

  TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE 
                            FINANCIAL SYSTEM

Sec. 411. Protection of medical information in the financial system.
Sec. 412. Confidentiality of medical contact information in consumer 
          reports.

          TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT

Sec. 511. Short title.
Sec. 512. Definitions.
Sec. 513. Establishment of Financial Literacy and Education Commission.
Sec. 514. Duties of the Commission.
Sec. 515. Powers of the Commission.
Sec. 516. Commission personnel matters.
Sec. 517. Studies by the Comptroller General.
Sec. 518. The national public service multimedia campaign to enhance the 
          state of financial literacy.
Sec. 519. Authorization of appropriations.

         TITLE VI--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS

Sec. 611. Certain employee investigation communications excluded from 
          definition of consumer report.

                    TITLE VII--RELATION TO STATE LAWS

Sec. 711. Relation to State laws.

                        TITLE VIII--MISCELLANEOUS

Sec. 811. Clerical amendments.

SEC. 2. DEFINITIONS.

    As used in this Act--
            (1) the term ``Board'' means the Board of Governors 
        of the Federal Reserve System;
            (2) the term ``Commission'', other than as used in 
        title V, means the Federal Trade Commission;
            (3) the terms ``consumer'', ``consumer report'', 
        ``consumer reporting agency'', ``creditor'', ``Federal 
        banking agencies'', and ``financial institution'' have 
        the same meanings as in section 603 of the Fair Credit 
        Reporting Act, as amended by this Act; and
            (4) the term ``affiliates'' means persons that are 
        related by common ownership or affiliated by corporate 
        control.

SEC. 3. EFFECTIVE DATES.

    Except as otherwise specifically provided in this Act and 
the amendments made by this Act--
            (1) before the end of the 2-month period beginning 
        on the date of enactment of this Act, the Board and the 
        Commission shall jointly prescribe regulations in final 
        form establishing effective dates for each provision of 
        this Act; and
            (2) the regulations prescribed under paragraph (1) 
        shall establish effective dates that are as early as 
        possible, while allowing a reasonable time for the 
        implementation of the provisions of this Act, but in no 
        case shall any such effective date be later than 10 
        months after the date of issuance of such regulations 
        in final form.

   TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION

                 Subtitle A--Identity Theft Prevention

SEC. 111. AMENDMENT TO DEFINITIONS.

    Section 603 of the Fair Credit Reporting Act (15 U.S.C. 
1681a) is amended by adding at the end the following:
    ``(q) Definitions Relating to Fraud Alerts.--
            ``(1) Active duty military consumer.--The term 
        `active duty military consumer' means a consumer in 
        military service who--
                    ``(A) is on active duty (as defined in 
                section 101(d)(1) of title 10, United States 
                Code) or is a reservist performing duty under a 
                call or order to active duty under a provision 
                of law referred to in section 101(a)(13) of 
                title 10, United States Code; and
                    ``(B) is assigned to service away from the 
                usual duty station of the consumer.
            ``(2) Fraud alert; active duty alert.--The terms 
        `fraud alert' and `active duty alert' mean a statement 
        in the file of a consumer that--
                    ``(A) notifies all prospective users of a 
                consumer report relating to the consumer that 
                the consumer may be a victim of fraud, 
                including identity theft, or is an active duty 
                military consumer, as applicable; and
                    ``(B) is presented in a manner that 
                facilitates a clear and conspicuous view of the 
                statement described in subparagraph (A) by any 
                person requesting such consumer report.
            ``(3) Identity theft.--The term `identity theft' 
        means a fraud committed using the identifying 
        information of another person, subject to such further 
        definition as the Commission may prescribe, by 
        regulation.
            ``(4) Identity theft report.--The term `identity 
        theft report' has the meaning given that term by rule 
        of the Commission, and means, at a minimum, a report--
                    ``(A) that alleges an identity theft;
                    ``(B) 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 Commission; 
                and
                    ``(C) 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.
            ``(5) New credit plan.--The term `new credit plan' 
        means a new account under an open end credit plan (as 
        defined in section 103(i) of the Truth in Lending Act) 
        or a new credit transaction not under an open end 
        credit plan.
    ``(r) Credit and Debit Related Terms--
            ``(1) Card issuer.--The term `card issuer' means--
                    ``(A) a credit card issuer, in the case of 
                a credit card; and
                    ``(B) a debit card issuer, in the case of a 
                debit card.
            ``(2) Credit card.--The term `credit card' has the 
        same meaning as in section 103 of the Truth in Lending 
        Act.
            ``(3) Debit card.--The term `debit card' means any 
        card issued by a financial institution to a consumer 
        for use in initiating an electronic fund transfer from 
        the account of the consumer at such financial 
        institution, for the purpose of transferring money 
        between accounts or obtaining money, property, labor, 
        or services.
            ``(4) Account and electronic fund transfer.--The 
        terms `account' and `electronic fund transfer' have the 
        same meanings as in section 903 of the Electronic Fund 
        Transfer Act.
            ``(5) Credit and creditor.--The terms `credit' and 
        `creditor' have the same meanings as in section 702 of 
        the Equal Credit Opportunity Act.
    ``(s) Federal Banking Agency.--The term `Federal banking 
agency' has the same meaning as in section 3 of the Federal 
Deposit Insurance Act.
    ``(t) Financial Institution.--The term `financial 
institution' means a State or National bank, a State or Federal 
savings and loan association, a mutual savings bank, a State or 
Federal credit union, or any other person that, directly or 
indirectly, holds a transaction account (as defined in section 
19(b) of the Federal Reserve Act) belonging to a consumer.
    ``(u) Reseller.--The term `reseller' means a consumer 
reporting agency that--
            ``(1) assembles and merges information contained in 
        the database of another consumer reporting agency or 
        multiple consumer reporting agencies concerning any 
        consumer for purposes of furnishingsuch information to 
        any third party, to the extent of such activities; and
            ``(2) does not maintain a database of the assembled 
        or merged information from which new consumer reports 
        are produced.
    ``(v) Commission.--The term `Commission' means the Federal 
Trade Commission.
    ``(w) Nationwide Specialty Consumer Reporting Agency.--The 
term `nationwide specialty consumer reporting agency' means a 
consumer reporting agency that compiles and maintains files on 
consumers on a nationwide basis relating to--
            ``(1) medical records or payments;
            ``(2) residential or tenant history;
            ``(3) check writing history;
            ``(4) employment history; or
            ``(5) insurance claims.''.

SEC. 112. FRAUD ALERTS AND ACTIVE DUTY ALERTS.

    (a) Fraud Alerts.--The Fair Credit Reporting Act (15 U.S.C. 
1681 et seq.) is amended by inserting after section 605 the 
following:

``Sec. 605A. Identity theft prevention; fraud alerts and active duty 
                    alerts

    ``(a) One-Call Fraud Alerts.--
            ``(1) Initial alerts.--Upon the direct request of a 
        consumer, or an individual acting on behalf of or as a 
        personal representative 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, 
        including identity theft, 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 shall--
                    ``(A) include a fraud alert in the file of 
                that consumer, and also provide that alert 
                along with any credit score generated in using 
                that file, for a period of not less than 90 
                days, beginning on the date of such request, 
                unless the consumer or such representative 
                requests that such fraud alert be removed 
                before the end of such period, and the agency 
                has received appropriate proof of the identity 
                of the requester for such purpose; and
                    ``(B) refer the information regarding the 
                fraud alert under this paragraph to each of the 
                other consumer reporting agencies described in 
                section 603(p), in accordance with procedures 
                developed under section 621(f).
            ``(2) Access to free reports.--In any case in which 
        a consumer reporting agency includes a fraud alert in 
        the file of a consumer pursuant to this subsection, the 
        consumer reporting agency shall--
                    ``(A) disclose to the consumer that the 
                consumer may request a free copy of the file of 
                the consumer pursuant to section 612(d); and
                    ``(B) provide to the 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).
    ``(b) Extended Alerts.--
            ``(1) In general.--Upon the direct request of a 
        consumer, or an individual acting on behalf of or as a 
        personal representative of a consumer, who submits an 
        identity theft report to a consumer reporting agency 
        described in section 603(p) that maintains a file on 
        the consumer, if the agency has received appropriate 
        proof of the identity of the requester, the agency 
        shall--
                    ``(A) include a fraud alert in the file of 
                that consumer, and also provide that alert 
                along with any credit score generated in using 
                that file, during the 7-year period beginning 
                on thedate of such request, unless the consumer 
                or such representative requests that such fraud 
                alert be removed before the end of such period and 
                the agency has received appropriate proof of 
                the identity of the requester for such purpose;
                    ``(B) during the 5-year period beginning on 
                the date of such request, exclude the consumer 
                from any list of consumers prepared by the 
                consumer reporting agency and provided to any 
                third party to offer credit or insurance to the 
                consumer as part of a transaction that was not 
                initiated by the consumer, unless the consumer 
                or such representative requests that such 
                exclusion be rescinded before the end of such 
                period; and
                    ``(C) refer the information regarding the 
                extended fraud alert under this paragraph to 
                each of the other consumer reporting agencies 
                described in section 603(p), in accordance with 
                procedures developed under section 621(f).
            ``(2) Access to free reports.--In any case in which 
        a consumer reporting agency includes a fraud alert in 
        the file of a consumer pursuant to this subsection, the 
        consumer reporting agency shall--
                    ``(A) disclose to the consumer that the 
                consumer may request 2 free copies of the file 
                of the consumer pursuant to section 612(d) 
                during the 12-month period beginning on the 
                date on which the fraud alert was included in 
                the file; and
                    ``(B) provide to the 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).
    ``(c) Active Duty Alerts.--Upon the direct request of an 
active duty military consumer, or an individual acting on 
behalf of or as a personal representative of an active duty 
military consumer, a consumer reporting agency described in 
section 603(p) that maintains a file on the active duty 
military consumer and has received appropriate proof of the 
identity of the requester shall--
            ``(1) include an active duty alert in the file of 
        that active duty military consumer, and also provide 
        that alert along with any credit score generated in 
        using that file, during a period of not less than 12 
        months, or such longer period as the Commission shall 
        determine, by regulation, beginning on the date of the 
        request, unless the active duty military consumer or 
        such representative requests that such fraud alert be 
        removed before the end of such period, and the agency 
        has received appropriate proof of the identity of the 
        requester for such purpose;
            ``(2) during the 2-year period beginning on the 
        date of such request, exclude the active duty military 
        consumer from any list of consumers prepared by the 
        consumer reporting agency and provided to any third 
        party to offer credit or insurance to the consumer as 
        part of a transaction that was not initiated by the 
        consumer, unless the consumer requests that such 
        exclusion be rescinded before the end of such period; 
        and
            ``(3) refer the information regarding the active 
        duty alert to each of the other consumer reporting 
        agencies described in section 603(p), in accordance 
        with procedures developed under section 621(f).
    ``(d) Procedures.--Each consumer reporting agency described 
in section 603(p) shall establish policies and procedures to 
comply with this section, including procedures that inform 
consumers of the availability of initial, extended, and active 
duty alerts and procedures that allow consumers and active duty 
military consumers to request initial, extended, or active duty 
alerts (as applicable) in a simple and easy manner, including 
by telephone.
    ``(e) Referrals of Alerts.--Each consumer reporting agency 
described in section 603(p) that receives a referral of a fraud 
alert or active duty alert from another consumer reporting 
agency pursuant to this section shall, as though the agency 
received the request from the consumer directly, follow the 
procedures required under--
            ``(1) paragraphs (1)(A) and (2) of subsection (a), 
        in the case of a referral under subsection (a)(1)(B);
            ``(2) paragraphs (1)(A), (1)(B), and (2) of 
        subsection (b), in the case of a referral under 
        subsection (b)(1)(C); and
            ``(3) paragraphs (1) and (2) of subsection (c), in 
        the case of a referral under subsection (c)(3).
    ``(f) Duty of Reseller To Reconvey Alert.--A reseller shall 
include in its report any fraud alert or active duty alert 
placed in the file of a consumer pursuant to this section by 
another consumer reporting agency.
    ``(g) Duty of Other Consumer Reporting Agencies To Provide 
Contact Information.--If a consumer contacts any consumer 
reporting agency that is not described in section 603(p) to 
communicate a suspicion that the consumer has been or is about 
to become a victim of fraud or related crime, including 
identity theft, the agency shall provide information to the 
consumer on how to contact the Commission and the consumer 
reporting agencies described in section 603(p) to obtain more 
detailed information and request alerts under this section.
    ``(h) Limitations on Use of Information for Credit 
Extensions..--
            ``(1) Requirements for initial and active duty 
        alerts.--
                    ``(A) Notification.--Each initial fraud 
                alert and active duty alert under this section 
                shall include information that notifies all 
                prospective users of a consumer report on the 
                consumer to which the alert relates that the 
                consumer does not authorize the establishment 
                of any new credit plan or extension of credit, 
                other than under an open-end credit plan (as 
                defined in section 103(i)), in the name of the 
                consumer, or issuance of an additional card on 
                an existing credit account requested by a 
                consumer, or any increase in credit limit on an 
                existing credit account requested by a 
                consumer, except in accordance with 
                subparagraph (B).
                    ``(B) Limitation on users.--
                            ``(i) In general.--No prospective 
                        user of a consumer report that includes 
                        an initial fraud alert or an active 
                        duty alert inaccordance with this 
                        section may establish a new credit plan 
                        or extension of credit, other than under 
                        an open-end credit plan (as defined in 
                        section 103(i)), in the name of the consumer, 
                        or issue an additional card on an existing 
                        credit account requested by a consumer, or 
                        grant any increase in credit limit on an 
                        existing credit account requested by a consumer, 
                        unless the user utilizes reasonable policies and 
                        procedures to form a reasonable belief that the 
                        user knows the identity of the person making the 
                        request.
                            ``(ii) Verification.--If a consumer 
                        requesting the alert has specified a 
                        telephone number to be used for 
                        identity verification purposes, before 
                        authorizing any new credit plan or 
                        extension described in clause (i) in 
                        the name of such consumer, a user of 
                        such consumer report shall contact the 
                        consumer using that telephone number or 
                        take reasonable steps to verify the 
                        consumer's identity and confirm that 
                        the application for a new credit plan 
                        is not the result of identity theft.
            ``(2) Requirements for extended alerts.--
                    ``(A) Notification.--Each extended alert 
                under this section shall include information 
                that provides all prospective users of a 
                consumer report relating to a consumer with--
                            ``(i) notification that the 
                        consumer does not authorize the 
                        establishment of any new credit plan or 
                        extension of credit described in clause 
                        (i), other than under an open-end 
                        credit plan (as defined in section 
                        103(i)), in the name of the consumer, 
                        or issuance of an additional card on an 
                        existing credit account requested by a 
                        consumer, or any increase in credit 
                        limit on an existing credit account 
                        requested by a consumer, except in 
                        accordance with subparagraph (B); and
                            ``(ii) a telephone number or other 
                        reasonable contact method designated by 
                        the consumer.
                    ``(B) Limitation on users.--No prospective 
                user of a consumer report or of a credit score 
                generated using the information in the file of 
                a consumer that includes an extended fraud 
                alert in accordance with this section may 
                establish a new credit plan or extension of 
                credit, other than under an open-end credit 
                plan (as defined in section 103(i)), in the 
                name of the consumer, or issue an additional 
                card on an existing credit account requested by 
                a consumer, or any increase in credit limit on 
                an existing credit account requested by a 
                consumer, unless the user contacts the consumer 
                in person or using the contact method described 
                in subparagraph (A)(ii) to confirm that the 
                application for a new credit plan or increase 
                in credit limit, or request for an additional 
                card is not the result of identity theft.''.
    (b) Rulemaking.--The Commission shall prescribe regulations 
to define what constitutes appropriate proof of identity for 
purposes of sections 605A, 605B, and 609(a)(1) of the Fair 
Credit Reporting Act, as amended by this Act.

SEC. 113. TRUNCATION OF CREDIT CARD AND DEBIT CARD ACCOUNT NUMBERS.

    Section 605 of the Fair Credit Reporting Act (15 U.S.C. 
1681c) is amended by adding at the end the following:
    ``(g) Truncation of Credit Card and Debit Card Numbers.--
            ``(1) In general.--Except as otherwise provided in 
        this subsection, no person that accepts credit cards or 
        debit cards for the transaction of business shall print 
        more than the last 5 digits of the card number or the 
        expiration date upon any receipt provided to the 
        cardholder at the point of the sale or transaction.
            ``(2) Limitation.--This subsection shall apply only 
        to receipts that are electronically printed, and shall 
        not apply to transactions in which the sole means of 
        recording a credit card or debit card account number is 
        by handwriting or by an imprint or copy of the card.
            ``(3) Effective date.--This subsection shall become 
        effective--
                    ``(A) 3 years after the date of enactment 
                of this subsection, 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
                    ``(B) 1 year after the date of enactment of 
                this subsection, 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 January 1, 2005.''.

SEC. 114. ESTABLISHMENT OF PROCEDURES FOR THE IDENTIFICATION OF 
                    POSSIBLE INSTANCES OF IDENTITY THEFT.

    Section 615 of the Fair Credit Reporting Act (15 U.S.C. 
1681m) is amended--
            (1) by striking ``(e)'' at the end; and
            (2) by adding at the end the following:
    ``(e) Red Flag Guidelines and Regulations Required.--
            ``(1) Guidelines.--The Federal banking agencies, 
        the National Credit Union Administration, and the 
        Commission shall jointly, with respect to the entities 
        that are subject to their respective enforcement 
        authority under section 621--
                    ``(A) establish and maintain guidelines for 
                use by each financial institution and each 
                creditor regarding identity theft with respect 
                to account holders at, or customers of, such 
                entities, and update such guidelines as often 
                as necessary;
                    ``(B) prescribe regulations requiring each 
                financial institution and each creditor to 
                establish reasonable policies and procedures 
                for implementing the guidelines established 
                pursuant to subparagraph (A), to identify 
                possible risks to account holders or customers 
                or to the safety and soundness of the 
                institution or customers; and
                    ``(C) prescribe regulations applicable to 
                card issuers to ensure that, if a card issuer 
                receives notification of a change of address 
                for an existing account, and within a short 
                period of time (during at least the first 30 
                days after such notification is received) 
                receives a request for an additional or 
                replacement card for the same account, the card 
                issuer may not issue the additional or 
                replacement card, unless the card issuer, in 
                accordance with reasonable policies and 
                procedures--
                            ``(i) notifies the cardholder of 
                        the request at the former address of 
                        the cardholder and provides to the 
                        cardholder a means of promptly 
                        reporting incorrect address changes;
                            ``(ii) notifies the cardholder of 
                        the request by such other means of 
                        communication as the cardholder and the 
                        card issuer previously agreed to; or
                            ``(iii) uses other means of 
                        assessing the validity of the change of 
                        address, in accordance with reasonable 
                        policies and procedures established by 
                        the card issuer in accordance with the 
                        regulations prescribed under 
                        subparagraph (B).
            ``(2) Criteria.--
                    ``(A) In general.--In developing the 
                guidelines required by paragraph (1)(A), the 
                agencies described in paragraph (1) shall 
                identify patterns, practices, and specific 
                forms of activity that indicate the possible 
                existence of identity theft.
                    ``(B) Inactive accounts.--In developing the 
                guidelines required by paragraph (1)(A), the 
                agencies described in paragraph (1) shall 
                consider including reasonable guidelines 
                providing that when a transaction occurs with 
                respect to a credit or deposit account that has 
                been inactive for more than 2 years, the 
                creditor or financial institution shall follow 
                reasonable policies and procedures that provide 
                for notice to be given to a consumer in a 
                manner reasonably designed to reduce the 
                likelihood of identity theft with respect to 
                such account.
            ``(3) Consistency with verification requirements.--
        Guidelines established pursuant to paragraph (1) shall 
        not be inconsistent with the policies and procedures 
        required under section 5318(l) of title 31, United 
        States Code.''.

SEC. 115. AUTHORITY TO TRUNCATE SOCIAL SECURITY NUMBERS.

    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 inserting the following: ``except that--
                    ``(A) if the consumer to whom the file 
                relates requests that the first 5 digits of the 
                social security number (or similar 
                identification number) of the consumer not be 
                included in the disclosure and the consumer 
                reporting agency has received appropriate proof 
                of the identity of the requester, the consumer 
                reporting agency shall so truncate such number 
                in such disclosure; and
                    ``(B) nothing''.

Subtitle B--Protection and Restoration of Identity Theft Victim Credit 
                                History

SEC. 151. SUMMARY OF RIGHTS OF IDENTITY THEFT VICTIMS.

    (a) In General.--
            (1) Summary.--Section 609 of the Fair Credit 
        Reporting Act (15 U.S.C. 1681g) is amended by adding at 
        the end the following:
    ``(d) Summary of Rights of Identity Theft Victims.--
            ``(1) In general.--The Commission, in consultation 
        with the Federal banking agencies and the National 
        Credit Union Administration, shall prepare a model 
        summary of the rights of consumers under this title 
        with respect to the procedures for remedying the 
        effects of fraud or identity theft involving credit, an 
        electronic fund transfer, or an account or transaction 
        at or with a financial institution or other creditor.
            ``(2) Summary of rights and contact information.--
        Beginning 60 days after the date on which the model 
        summary of rights is prescribed in final form by the 
        Commission pursuant to paragraph (1), if any consumer 
        contacts a consumer reporting agency and expresses a 
        belief that the consumer is a victim of fraud or 
        identity theft involving credit, an electronic fund 
        transfer, or an account or transaction at or with a 
        financial institution or other creditor, the consumer 
        reporting agency shall, in addition to any other action 
        that the agency may take, provide the consumer with a 
        summary of rights that contains all of the information 
        required by the Commission under paragraph (1), and 
        information on how to contact the Commission to obtain 
        more detailed information.
    ``(e) Information Available to Victims.--
            ``(1) In general.--For the purpose of documenting 
        fraudulent transactions resulting from identity theft, 
        not later than 30 days after the date of receipt of a 
        request from a victim in accordance with paragraph (3), 
        and subject to verification of the identity of the 
        victim and the claim of identity theft in accordance 
        with paragraph (2), a business entity that has provided 
        credit to, provided for consideration products, goods, 
        or services to, accepted payment from, or otherwise 
        entered into a commercial transaction for consideration 
        with, a person who has allegedly made unauthorized use 
        of the means of identification of the victim, shall 
        provide a copy of application and business transaction 
        records in the control of the business entity, whether 
        maintained by the business entity or by another person 
        on behalf of the business entity, evidencing any 
        transaction alleged to be a result of identity theft 
        to--
                    ``(A) the victim;
                    ``(B) any Federal, State, or local 
                government law enforcement agency or officer 
                specified by the victim in such a request; or
                    ``(C) any law enforcement agency 
                investigating the identity theft and authorized 
                by the victim to take receipt of records 
                provided under this subsection.
            ``(2) Verification of identity and claim.--Before a 
        business entity provides any information under 
        paragraph (1), unless the business entity, at its 
        discretion, otherwise has a high degree of confidence 
        that it knows the identity of the victim making a 
        request under paragraph (1), the victim shall provide 
        to the business entity--
                    ``(A) as proof of positive identification 
                of the victim, at the election of the business 
                entity--
                            ``(i) the presentation of a 
                        government-issued identification card;
                            ``(ii) personally identifying 
                        information of the same type as was 
                        provided to the business entity by the 
                        unauthorized person; or
                            ``(iii) personally identifying 
                        information that the business entity 
                        typically requests from new applicants 
                        or for new transactions, at the time of 
                        the victim's request for information, 
                        including any documentation described 
                        in clauses (i) and (ii); and
                    ``(B) as proof of a claim of identity 
                theft, at the election of the business entity--
                            ``(i) a copy of a police report 
                        evidencing the claim of the victim of 
                        identity theft; and
                            ``(ii) a properly completed--
                                    ``(I) copy of a 
                                standardized affidavit of 
                                identity theft developed and 
                                made available by the 
                                Commission; or
                                    ``(II) an affidavit of fact 
                                that is acceptable to the 
                                business entity for that 
                                purpose.
            ``(3) Procedures.--The request of a victim under 
        paragraph (1) shall--
                    ``(A) be in writing;
                    ``(B) be mailed to an address specified by 
                the business entity, if any; and
                    ``(C) if asked by the business entity, 
                include relevant information about any 
                transaction alleged to be a result of identity 
                theft to facilitate compliance with this 
                section including--
                            ``(i) if known by the victim (or if 
                        readily obtainable by the victim), the 
                        date of the application or transaction; 
                        and
                            ``(ii) if known by the victim (or 
                        if readily obtainable by the victim), 
                        any other identifying information such 
                        as an account or transaction number.
            ``(4) No charge to victim.--Information required to 
        be provided under paragraph (1) shall be so provided 
        without charge.
            ``(5) Authority to decline to provide 
        information.--A business entity may decline to provide 
        information under paragraph (1) if, in the exercise of 
        good faith, the business entity determines that--
                    ``(A) this subsection does not require 
                disclosure of the information;
                    ``(B) after reviewing the information 
                provided pursuant to paragraph (2), the 
                business entity does not have a high degree of 
                confidence in knowing the true identity of the 
                individual requesting the information;
                    ``(C) the request for the information is 
                based on a misrepresentation of fact by the 
                individual requesting the information relevant 
                to the request for information; or
                    ``(D) the information requested is Internet 
                navigational data or similar information about 
                a person's visit to a website or online 
                service.
            ``(6) Limitation on liability.--Except as provided 
        in section 621, sections 616 and 617 do not apply to 
        any violation of this subsection.
            ``(7) Limitation on civil liability.--No business 
        entity may be held civilly liable under any provision 
        of Federal, State, or other law for disclosure, made in 
        good faith pursuant to this subsection.
            ``(8) No new recordkeeping obligation.--Nothing in 
        this subsection creates an obligation on the part of a 
        business entity to obtain, retain, or maintain 
        information or records that are not otherwise required 
        to be obtained, retained, or maintained in the ordinary 
        course of its business or under other applicable law.
            ``(9) Rule of construction.--
                    ``(A) In general.--No provision of subtitle 
                A of title V of Public Law 106-102, prohibiting 
                the disclosure of financial information by a 
                business entity to third parties shall be used 
                to deny disclosure of information to the victim 
                under this subsection.
                    ``(B) Limitation.--Except as provided in 
                subparagraph (A), nothing in this subsection 
                permits a business entity to disclose 
                information, including information to law 
                enforcement under subparagraphs (B) and (C) of 
                paragraph (1), that the business entity is 
                otherwise prohibited from disclosing under any 
                other applicable provision of Federal or State 
                law.
            ``(10) Affirmative defense.--In any civil action 
        brought to enforce this subsection, it is an 
        affirmative defense (which the defendant must establish 
        by a preponderance of the evidence) for a business 
        entity to file an affidavit or answer stating that--
                    ``(A) the business entity has made a 
                reasonably diligent search of its available 
                business records; and
                    ``(B) the records requested under this 
                subsection do not exist or are not reasonably 
                available.
            ``(11) Definition of victim.--For purposes of this 
        subsection, the term `victim' means a consumer whose 
        means of identification or financial information has 
        been used or transferred (or has been alleged to have 
        been used or transferred) without the authority of that 
        consumer, with the intent to commit, or to aid or abet, 
        an identity theft or a similar crime.
            ``(12) Effective date.--This subsection shall 
        become effective 180 days after the date of enactment 
        of this subsection.
            ``(13) Effectiveness study.--Not later than 18 
        months after the date of enactment of this subsection, 
        the Comptroller General of the United States shall 
        submit a report to Congress assessing the effectiveness 
        of this provision.''.
            (2) Relation to state laws.--Section 625(b)(1) of 
        the Fair Credit Reporting Act (15 U.S.C. 1681t(b)(1), 
        as so redesignated) is amended by adding at the end the 
        following new subparagraph:
                    ``(G) section 609(e), relating to 
                information available to victims under section 
                609(e);''.
    (b) Public Campaign To Prevent Identity Theft.--Not later 
than 2 years after the date of enactment of this Act, the 
Commission shall establish and implement a media and 
distribution campaign to teach the public how to prevent 
identity theft. Such campaign shall include existing Commission 
education materials, as well as radio, television, and print 
public service announcements, video cassettes, interactive 
digital video discs (DVD's) or compact audio discs (CD's), and 
Internet resources.

SEC. 152. BLOCKING OF INFORMATION RESULTING FROM IDENTITY THEFT.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
1681 et seq.) is amended by inserting after section 605A, as 
added by this Act, the following:

``Sec. 605B. Block of information resulting from identity theft

    ``(a) Block.--Except as otherwise provided in this section, 
a consumer reporting agency shall block the reporting of any 
information in the file of a consumer that the consumer 
identifies as information that resulted from an alleged 
identity theft, not later than 4 business days after the date 
of receipt by such agency of--
            ``(1) appropriate proof of the identity of the 
        consumer;
            ``(2) a copy of an identity theft report;
            ``(3) the identification of such information by the 
        consumer; and
            ``(4) a statement by the consumer that the 
        information is not information relating to any 
        transaction by the consumer.
    ``(b) Notification.--A consumer reporting agency shall 
promptly notify the furnisher of information identified by the 
consumer under subsection (a)--
            ``(1) that the information may be a result of 
        identity theft;
            ``(2) that an identity theft report has been filed;
            ``(3) that a block has been requested under this 
        section; and
            ``(4) of the effective dates of the block.
    ``(c) Authority To Decline or Rescind.--
            ``(1) In general.--A consumer reporting agency may 
        decline to block, or may rescind any block, of 
        information relating to a consumer under this section, 
        if the consumer reporting agency reasonably determines 
        that--
                    ``(A) the information was blocked in error 
                or a block was requested by the consumer in 
                error;
                    ``(B) the information was blocked, or a 
                block was requested by the consumer, on the 
                basis of a material misrepresentation of fact 
                by the consumer relevant to the request to 
                block; or
                    ``(C) the consumer obtained possession of 
                goods, services, or money as a result of the 
                blocked transaction or transactions.
            ``(2) Notification to consumer.--If a block of 
        information is declined or rescinded under this 
        subsection, 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).
            ``(3) Significance of block.--For purposes of this 
        subsection, 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 money as a result of the block.
    ``(d) Exception for Resellers.--
            ``(1) No reseller file.--This section shall not 
        apply to a consumer reporting agency, if the consumer 
        reporting agency--
                    ``(A) is a reseller;
                    ``(B) is not, at the time of the request of 
                the consumer under subsection (a), otherwise 
                furnishing or reselling a consumer report 
                concerning the information identified by the 
                consumer; and
                    ``(C) informs the consumer, by any means, 
                that the consumer may report the identity theft 
                to the Commission to obtain consumer 
                information regarding identity theft.
            ``(2) Reseller with file.--The sole obligation of 
        the consumer reporting agency under this section, with 
        regard to any request of a consumer under this section, 
        shall be to block the consumer report maintained by the 
        consumer reporting agency from any subsequent use, if--
                    ``(A) the consumer, in accordance with the 
                provisions of subsection (a), identifies, to a 
                consumer reporting agency, information in the 
                file of the consumer that resulted from 
                identity theft; and
                    ``(B) the consumer reporting agency is a 
                reseller of the identified information.
            ``(3) Notice.--In carrying out its obligation under 
        paragraph (2), 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.
    ``(e) Exception for Verification Companies.--The provisions 
of this section do not apply to a check services company, 
acting as such, which issues authorizations for the purpose of 
approving or processing negotiable instruments, electronic fund 
transfers, or similar methods of payments, except that, 
beginning 4 business days after receipt of information 
described in paragraphs (1) through (3) of subsection (a), a 
check services company shall not report to a national consumer 
reporting agency described in section 603(p), any information 
identified in the subject identity theft report as resulting 
from identity theft.
    ``(f) Access to Blocked Information by Law Enforcement 
Agencies.--No provision of this section shall be construed as 
requiring a consumer reporting agency to prevent a Federal, 
State, or local law enforcement agency from accessing blocked 
information in a consumer file to which the agency could 
otherwise obtain access under this title.''.
    (b) Clerical Amendment.--The table of sections for the Fair 
Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended by 
inserting after the item relating to section 605 the following 
new items:

``605A. Identity theft prevention; fraud alerts and active duty alerts.
``605B. Block of information resulting from identity theft.''.

SEC. 153. COORDINATION OF IDENTITY THEFT COMPLAINT INVESTIGATIONS.

    Section 621 of the Fair Credit Reporting Act (15 U.S.C. 
1681s) is amended by adding at the end the following:
    ``(f) Coordination of Consumer Complaint Investigations.--
            ``(1) In general.--Each consumer reporting agency 
        described in section 603(p) shall develop and maintain 
        procedures for the referral to each other such agency 
        of any consumer complaint received by the agency 
        alleging identity theft, or requesting a fraud alert 
        under section 605A or a block under section 605B.
            ``(2) Model form and procedure for reporting 
        identity theft.--The Commission, in consultation with 
        the Federal banking agencies and the National Credit 
        Union Administration, shall develop a model form and 
        model procedures to be used by consumers who are 
        victims of identity theft for contacting and informing 
        creditors and consumer reporting agencies of the fraud.
            ``(3) Annual summary reports.--Each consumer 
        reporting agency described in section 603(p) shall 
        submit an annual summary report to the Commission on 
        consumer complaints received by the agency on identity 
        theft or fraud alerts.''.

SEC. 154. PREVENTION OF REPOLLUTION OF CONSUMER REPORTS.

    (a) Prevention of Reinsertion of Erroneous Information.--
Section 623(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681s-2(a)) is amended by adding at the end the following:
            ``(6) Duties of furnishers upon notice of identity 
        theft-related information.--
                    ``(A) Reasonable procedures.--A person that 
                furnishes information to any consumer reporting 
                agency shall have in place reasonable 
                procedures to respond to any notification that 
                it receives from a consumer reporting agency 
                under section 605B relating to information 
                resulting from identity theft, to prevent that 
                person from refurnishing such blocked 
                information.
                    ``(B) Information alleged to result from 
                identity theft.--If a consumer submits an 
                identity theft report to a person who furnishes 
                information to a consumer reporting agency at 
                the address specified by that person for 
                receiving such reports stating that information 
                maintained by such person that purports to 
                relate to the consumer resulted from identity 
                theft, the person may not furnish such 
                information that purports to relate to the 
                consumer to any consumer reporting agency, 
                unless the person subsequently knows or is 
                informed by the consumer that the information 
                is correct.''.
    (b) Prohibition on Sale or Transfer of Debt Caused by 
Identity Theft.--Section 615 of the Fair Credit Reporting Act 
(15 U.S.C. 1681m), as amended by this Act, is amended by adding 
at the end the following:
    ``(f) Prohibition on Sale or Transfer of Debt Caused by 
Identity Theft.--
            ``(1) In general.--No person shall sell, transfer 
        for consideration, or place for collection a debt that 
        such person has been notified under section 605B has 
        resulted from identity theft.
            ``(2) Applicability.--The prohibitions of this 
        subsection shall apply to all persons collecting a debt 
        described in paragraph (1) after the date of a 
        notification under paragraph (1).
            ``(3) Rule of construction.--Nothing in this 
        subsection shall be construed to prohibit--
                    ``(A) the repurchase of a debt in any case 
                in which the assignee of the debt requires such 
                repurchase because the debt has resulted from 
                identity theft;
                    ``(B) the securitization of a debt or the 
                pledging of a portfolio of debt as collateral 
                in connection with a borrowing; or
                    ``(C) the transfer of debt as a result of a 
                merger, acquisition, purchase and assumption 
                transaction, or transfer of substantially all 
                of the assets of an entity.''.

SEC. 155. NOTICE BY DEBT COLLECTORS WITH RESPECT TO FRAUDULENT 
                    INFORMATION.

    Section 615 of the Fair Credit Reporting Act (15 U.S.C. 
1681m), as amended by this Act, is amended by adding at the end 
the following:
    ``(g) Debt Collector Communications Concerning Identity 
Theft.--If a person acting as a debt collector (as that term is 
defined in title VIII) on behalf of a third party that is a 
creditor or other user of a consumer report is notified that 
any information relating to a debt that the person is 
attempting to collect may be fraudulent or may be the result of 
identity theft, that person shall--
            ``(1) notify the third party that the information 
        may be fraudulent or may be the result of identity 
        theft; and
            ``(2) upon request of the consumer to whom the debt 
        purportedly relates, provide to the consumer all 
        information to which the consumer would otherwise be 
        entitled if the consumer were not a victim of identity 
        theft, but wished to dispute the debt under provisions 
        of law applicable to that person.''.

SEC. 156. STATUTE OF LIMITATIONS.

    Section 618 of the Fair Credit Reporting Act (15 U.S.C. 
1681p) is amended to read as follows:

``Sec. 618. Jurisdiction of courts; limitation of actions

    ``An action to enforce any liability created under this 
title may be brought in any appropriate United States district 
court, without regard to the amount in controversy, or in any 
other court of competent jurisdiction, not later than the 
earlier of--
            ``(1) 2 years after the date of discovery by the 
        plaintiff of the violation that is the basis for such 
        liability; or
            ``(2) 5 years after the date on which the violation 
        that is the basis for such liability occurs.''.

SEC. 157. STUDY ON THE USE OF TECHNOLOGY TO COMBAT IDENTITY THEFT.

    (a) Study Required.--The Secretary of the Treasury shall 
conduct a study of the use of biometrics and other similar 
technologies to reduce the incidence and costs to society of 
identity theft by providing convincing evidence of who actually 
performed a given financial transaction.
    (b) Consultation.--The Secretary of the Treasury shall 
consult with Federal banking agencies, the Commission, and 
representatives of financial institutions, consumer reporting 
agencies, Federal, State, and local government agencies that 
issue official forms or means of identification, State 
prosecutors, law enforcement agencies, the biometric industry, 
and the general public in formulating and conducting the study 
required by subsection (a).
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary of the Treasury for fiscal 
year 2004, such sums as may be necessary to carry out the 
provisions of this section.
    (d) Report Required.--Before the end of the 180-day period 
beginning on the date of enactment of this Act,the Secretary 
shall submit a report to Congress containing the findings and 
conclusions of the study required under subsection (a), together with 
such recommendations for legislative or administrative actions as may 
be appropriate.

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

SEC. 211. FREE CONSUMER REPORTS.

    (a) In General.--Section 612 of the Fair Credit Reporting 
Act (15 U.S.C. 1681j) is amended--
            (1) by redesignating subsection (a) as subsection 
        (f), and transferring it to the end of the section;
            (2) by inserting before subsection (b) the 
        following:
    ``(a) Free Annual Disclosure.--
            ``(1) Nationwide consumer reporting agencies.--
                    ``(A) In general.--All consumer reporting 
                agencies described in subsections (p) and (w) 
                of section 603 shall make all disclosures 
                pursuant to section 609 once during any 12-
                month period upon request of the consumer and 
                without charge to the consumer.
                    ``(B) Centralized source.--Subparagraph (A) 
                shall apply with respect to a consumer 
                reporting agency described in section 603(p) 
                only if the request from the consumer is made 
                using the centralized source established for 
                such purpose in accordance with section 211(c) 
                of the Fair and Accurate Credit Transactions 
                Act of 2003.
                    ``(C) Nationwide specialty consumer 
                reporting agency.--
                            ``(i) In general.--The Commission 
                        shall prescribe regulations applicable 
                        to each consumer reporting agency 
                        described in section 603(w) to require 
                        the establishment of a streamlined 
                        process for consumers to request 
                        consumer reports under subparagraph 
                        (A), which shall include, at a minimum, 
                        the establishment by each such agency 
                        of a toll-free telephone number for 
                        such requests.
                            ``(ii) Considerations.--In 
                        prescribing regulations under clause 
                        (i), the Commission shall consider--
                                    ``(I) the significant 
                                demands that may be placed on 
                                consumer reporting agencies in 
                                providing such consumer 
                                reports;
                                    ``(II) appropriate means to 
                                ensure that consumer reporting 
                                agencies can satisfactorily 
                                meet those demands, including 
                                the efficacy of a system of 
                                staggering the availability to 
                                consumers of such consumer 
                                reports; and
                                    ``(III) the ease by which 
                                consumers should be able to 
                                contact consumer reporting 
                                agencies with respect to access 
                                to such consumer reports.
                            ``(iii) Date of issuance.--The 
                        Commission shall issue the regulations 
                        required by this subparagraph in final 
                        form not later than 6 months after the 
                        date of enactment of the Fair and 
                        Accurate Credit Transactions Act of 
                        2003.
                            ``(iv) Consideration of ability to 
                        comply.--The regulations of the 
                        Commission under this subparagraph 
                        shall establish an effective date by 
                        which each nationwide specialty 
                        consumer reporting agency (as defined 
                        in section 603(w)) shall be required to 
                        comply with subsection (a), which 
                        effective date--
                                    ``(I) shall be established 
                                after consideration of the 
                                ability of each nationwide 
                                specialty consumer reporting 
                                agency to comply with 
                                subsection (a); and
                                    ``(II) shall be not later 
                                than 6 months after the date on 
                                which such regulations are 
                                issued in final form (or such 
                                additional period not to exceed 
                                3 months, as the Commission 
                                determines appropriate).
            ``(2) Timing.--A consumer reporting agency shall 
        provide a consumer report under paragraph (1) not later 
        than 15 days after the date on which the request is 
        received under paragraph (1).
            ``(3) Reinvestigations.--Notwithstanding the time 
        periods specified in section 611(a)(1), a 
        reinvestigation under that section by a consumer 
        reporting agency upon a request of a consumer that is 
        made after receiving a consumer report under this 
        subsection shall be completed not later than 45 days 
        after the date on which the request is received.
            ``(4) Exception for first 12 months of operation.--
        This subsection shall not apply to a consumer reporting 
        agency that has not been furnishing consumer reports to 
        third parties on a continuing basis during the 12-month 
        period preceding a request under paragraph (1), with 
        respect to consumers residing nationwide.'';
            (3) by redesignating subsection (d) as subsection 
        (e);
            (4) by inserting before subsection (e), as 
        redesignated, the following:
    ``(d) Free Disclosures in Connection With Fraud Alerts.--
Upon the request of a consumer, a consumer reporting agency 
described in section 603(p) shall make all disclosures pursuant 
to section 609 without charge to the consumer, as provided in 
subsections (a)(2) and (b)(2) of section 605A, as 
applicable.'';
            (5) in subsection (e), as redesignated, by striking 
        ``subsection (a)'' and inserting ``subsection (f)''; 
        and
            (6) in subsection (f), as redesignated, by striking 
        ``Except as provided in subsections (b), (c), and (d), 
        a'' and inserting ``In the case of a request from a 
        consumer other than a request that is covered by any of 
        subsections (a) through (d), a''.
    (b) Circumvention Prohibited.--The Fair Credit Reporting 
Act (15 U.S.C. 1681 et seq.) is amended by adding after section 
628, as added by section 216 of this Act, the following new 
section:

``Sec. 629. Corporate and technological circumvention prohibited

    ``The Commission shall prescribe regulations, to become 
effective not later than 90 days after the date of enactment of 
this section, to prevent a consumer reporting agency from 
circumventing or evading treatment as a consumer reporting 
agency described in section 603(p) for purposes of this title, 
including--
            ``(1) by means of a corporate reorganization or 
        restructuring, including a merger, acquisition, 
        dissolution, divestiture, or asset sale of a consumer 
        reporting agency; or
            ``(2) by maintaining or merging public record and 
        credit account information in a manner that is 
        substantially equivalent to that described in 
        paragraphs (1) and (2) of section 603(p), in the manner 
        described in section 603(p).''.
    (c) Summary of Rights To Obtain and Dispute Information in 
Consumer Reports and To Obtain Credit Scores.--Section 609(c) 
of the Fair Credit Reporting Act (15 U.S.C. 1681g) is amended 
to read as follows:
    ``(c) Summary of Rights To Obtain and Dispute Information 
in Consumer Reports and To Obtain Credit Scores.--
            ``(1) Commission summary of rights required.--
                    ``(A) In general.--The Commission shall 
                prepare a model summary of the rights of 
                consumers under this title.
                    ``(B) Content of summary.--The summary of 
                rights prepared under subparagraph (A) shall 
                include a description of--
                            ``(i) the right of a consumer to 
                        obtain a copy of a consumer report 
                        under subsection (a) from each consumer 
                        reporting agency;
                            ``(ii) the frequency and 
                        circumstances under which a consumer is 
                        entitled to receive a consumer report 
                        without charge under section 612;
                            ``(iii) the right of a consumer to 
                        dispute information in the file of the 
                        consumer under section 611;
                            ``(iv) the right of a consumer to 
                        obtain a credit score from a consumer 
                        reporting agency, and a description of 
                        how to obtain a credit score;
                            ``(v) the method by which a 
                        consumer can contact, and obtain a 
                        consumer report from, a consumer 
                        reporting agency without charge, as 
                        provided in the regulations of the 
                        Commission prescribed under section 
                        211(c) of the Fair and Accurate Credit 
                        Transactions Act of 2003; and
                            ``(vi) the method by which a 
                        consumer can contact, and obtain a 
                        consumer report from, a consumer 
                        reporting agency described in section 
                        603(w), as provided in the regulations 
                        of the Commission prescribed under 
                        section 612(a)(1)(C).
                    ``(C) Availability of summary of rights.--
                The Commission shall--
                            ``(i) actively publicize the 
                        availability of the summary of rights 
                        prepared under this paragraph;
                            ``(ii) conspicuously post on its 
                        Internet website the availability of 
                        such summary of rights; and
                            ``(iii) promptly make such summary 
                        of rights available to consumers, on 
                        request.
            ``(2) Summary of rights required to be included 
        with agency disclosures.--A consumer reporting agency 
        shall provide to a consumer, with each written 
        disclosure by the agency to the consumer under this 
        section--
                    ``(A) the summary of rights prepared by the 
                Commission under paragraph (1);
                    ``(B) in the case of a consumer reporting 
                agency described in section 603(p), a toll-free 
                telephone number established by the agency, at 
                which personnel are accessible to consumers 
                during normal business hours;
                    ``(C) a list of all Federal agencies 
                responsible for enforcing any provision of this 
                title, and the address and any appropriate 
                phone number of each such agency, in a form 
                that will assist the consumer in selecting the 
                appropriate agency;
                    ``(D) a statement that the consumer may 
                have additional rights under State law, and 
                that the consumer may wish to contact a State 
                or local consumer protection agency or a State 
                attorney general (or the equivalent thereof) to 
                learn of those rights; and
                    ``(E) a statement that a consumer reporting 
                agency is not required to remove accurate 
                derogatory information from the file of a 
                consumer, unless the information is outdated 
                under section 605 or cannot be verified.''.
    (d) Rulemaking Required.--
            (1) In general.--The Commission shall prescribe 
        regulations applicable to consumer reporting agencies 
        described in section 603(p) of the Fair Credit 
        Reporting Act, to require the establishment of--
                    (A) a centralized source through which 
                consumers may obtain a consumer report from 
                each such consumer reporting agency, using a 
                single request, and without charge to the 
                consumer, as provided in section 612(a) of the 
                Fair Credit Reporting Act (as amended by this 
                section); and
                    (B) a standardized form for a consumer to 
                make such a request for a consumer report by 
                mail or through an Internet website.
            (2) Considerations.--In prescribing regulations 
        under paragraph (1), the Commission shall consider--
                    (A) the significant demands that may be 
                placed on consumer reporting agencies in 
                providing such consumer reports;
                    (B) appropriate means to ensure that 
                consumer reporting agencies can satisfactorily 
                meet those demands, including the efficacy of a 
                system of staggering the availability to 
                consumers of such consumer reports; and
                    (C) the ease by which consumers should be 
                able to contact consumer reporting agencies 
                with respect to access to such consumer 
                reports.
            (3) Centralized source.--The centralized source for 
        a request for a consumer report from a consumer 
        required by this subsection shall provide for--
                    (A) a toll-free telephone number for such 
                purpose;
                    (B) use of an Internet website for such 
                purpose; and
                    (C) a process for requests by mail for such 
                purpose.
            (4) Transition.--The regulations of the Commission 
        under paragraph (1) shall provide for an orderly 
        transition by consumer reporting agencies described in 
        section 603(p) of the Fair Credit Reporting Act to the 
        centralized source for consumer report distribution 
        required by section 612(a)(1)(B), as amended by this 
        section, in a manner that--
                    (A) does not temporarily overwhelm such 
                consumer reporting agencies with requests for 
                disclosures of consumer reports beyond their 
                capacity to deliver; and
                    (B) does not deny creditors, other users, 
                and consumers access to consumer reports on a 
                time-sensitive basis for specific purposes, 
                such as home purchases or suspicions of 
                identity theft, during the transition period.
            (5) Timing.--Regulations required by this 
        subsection shall--
                    (A) be issued in final form not later than 
                6 months after the date of enactment of this 
                Act; and
                    (B) become effective not later than 6 
                months after the date on which they are issued 
                in final form.
            (6) Scope of regulations.--
                    (A) In general.--The Commission shall, by 
                rule, determine whether to require a consumer 
                reporting agency that compiles and maintains 
                files on consumers on substantially a 
                nationwide basis, other than one described in 
                section 603(p) of the Fair Credit Reporting 
                Act, to make free consumer reports available 
                upon consumer request, and if so, whether such 
                consumer reporting agencies should make such 
                free reports available through the centralized 
                source described in paragraph (1)(A).
                    (B) Considerations.--Before making any 
                determination under subparagraph (A), the 
                Commission shall consider--
                            (i) the number of requests for 
                        consumer reports to, and the number of 
                        consumer reports generated by, the 
                        consumer reporting agency, in 
                        comparison with consumer reporting 
                        agencies described in subsections (p) 
                        and (w) of section 603 of the Fair 
                        Credit Reporting Act;
                            (ii) the overall scope of the 
                        operations of the consumer reporting 
                        agency;
                            (iii) the needs of consumers for 
                        access to consumer reports provided by 
                        consumer reporting agencies free of 
                        charge;
                            (iv) the costs of providing access 
                        to consumer reports by consumer 
                        reporting agencies free of charge; and
                            (v) the effects on the ongoing 
                        competitive viability of such consumer 
                        reporting agencies if such free access 
                        is required.

SEC. 212. DISCLOSURE OF CREDIT SCORES.

    (a) Statement on Availability of Credit Scores.--Section 
609(a) of the Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is 
amended by adding at the end the following new paragraph:
            ``(6) If the consumer requests the credit file and 
        not the credit score, a statement that the consumer may 
        request and obtain a credit score.''.
    (b) Disclosure of Credit Scores.--Section 609 of the Fair 
Credit Reporting Act (15 U.S.C. 1681g), as amended by this Act, 
is amended by adding at the end the following:
    ``(f) Disclosure of Credit Scores.--
            ``(1) In general.--Upon the request of a consumer 
        for a credit score, a consumer reporting agency shall 
        supply to the consumer a statement indicating that the 
        information and credit scoring model may be different 
        than the credit score that may be used by the lender, 
        and a notice which shall include--
                    ``(A) the current credit score of the 
                consumer or the most recent credit score of the 
                consumer that was previously calculated by the 
                credit reporting agency for a purpose related 
                to the extension of credit;
                    ``(B) the range of possible credit scores 
                under the model used;
                    ``(C) all of the key factors that adversely 
                affected the credit score of the consumer in 
                the model used, the total number of which shall 
                not exceed 4, subject to paragraph (9);
                    ``(D) the date on which the credit score 
                was created; and
                    ``(E) the name of the person or entity that 
                provided the credit score or credit file upon 
                which the credit score was created.
            ``(2) Definitions.--For purposes of this 
        subsection, the following definitions shall apply:
                    ``(A) Credit score.--The term `credit 
                score'--
                            ``(i) means a numerical value or a 
                        categorization derived from a 
                        statistical tool or modeling system 
                        used by a person who makes or arranges 
                        a loan to predict the likelihood of 
                        certain credit behaviors, including 
                        default (and the numerical value or the 
                        categorization derived from such 
                        analysis may also be referred to as a 
                        `risk predictor' or `risk score'); and
                            ``(ii) does not include--
                                    ``(I) any mortgage score or 
                                rating of an automated 
                                underwriting system that 
                                considers one or more factors 
                                in addition to credit 
                                information, including the loan 
                                to value ratio, the amount of 
                                down payment, or the financial 
                                assets of a consumer; or
                                    ``(II) any other elements 
                                of the underwriting process or 
                                underwriting decision.
                    ``(B) Key factors.--The term `key factors' 
                means all relevant elements or reasons 
                adversely affecting the credit score for the 
                particular individual, listed in the order of 
                theirimportance based on their effect on the 
credit score.
            ``(3) Timeframe and manner of disclosure.--The 
        information required by this subsection shall be 
        provided in the same timeframe and manner as the 
        information described in subsection (a).
            ``(4) Applicability to certain uses.--This 
        subsection shall not be construed so as to compel a 
        consumer reporting agency to develop or disclose a 
        score if the agency does not--
                    ``(A) distribute scores that are used in 
                connection with residential real property 
                loans; or
                    ``(B) develop scores that assist credit 
                providers in understanding the general credit 
                behavior of a consumer and predicting the 
                future credit behavior of the consumer.
            ``(5) Applicability to credit scores developed by 
        another person.--
                    ``(A) In general.--This subsection shall 
                not be construed to require a consumer 
                reporting agency that distributes credit scores 
                developed by another person or entity to 
                provide a further explanation of them, or to 
                process a dispute arising pursuant to section 
                611, except that the consumer reporting agency 
                shall provide the consumer with the name and 
                address and website for contacting the person 
                or entity who developed the score or developed 
                the methodology of the score.
                    ``(B) Exception.--This paragraph shall not 
                apply to a consumer reporting agency that 
                develops or modifies scores that are developed 
                by another person or entity.
            ``(6) Maintenance of credit scores not required.--
        This subsection shall not be construed to require a 
        consumer reporting agency to maintain credit scores in 
        its files.
            ``(7) Compliance in certain cases.--In complying 
        with this subsection, a consumer reporting agency 
        shall--
                    ``(A) supply the consumer with a credit 
                score that is derived from a credit scoring 
                model that is widely distributed to users by 
                that consumer reporting agency in connection 
                with residential real property loans or with a 
                credit score that assists the consumer in 
                understanding the credit scoring assessment of 
                the credit behavior of the consumer and 
                predictions about the future credit behavior of 
                the consumer; and
                    ``(B) a statement indicating that the 
                information and credit scoring model may be 
                different than that used by the lender.
            ``(8) Fair and reasonable fee.--A consumer 
        reporting agency may charge a fair and reasonable fee, 
        as determined by the Commission, for providing the 
        information required under this subsection.
            ``(9) Use of enquiries as a key factor.--If a key 
        factor that adversely affects the credit score of a 
        consumer consists of the number of enquiries made with 
        respect to a consumer report, that factor shall be 
        included in the disclosure pursuant to paragraph (1)(C) 
        without regard to the numerical limitation in such 
        paragraph.''.
    (c) Disclosure of Credit Scores by Certain Mortgage 
Lenders.--Section 609 of the Fair Credit Reporting Act (15 
U.S.C. 1681g), as amended by this Act, is amended by adding at 
the end the following:
    ``(g) Disclosure of Credit Scores by Certain Mortgage 
Lenders.--
            ``(1) In general.--Any person who makes or arranges 
        loans and who uses a consumer credit score, as defined 
        in subsection (f), in connection with an application 
        initiated or sought by a consumer for a closed end loan 
        or the establishment of an open end loan for a consumer 
        purpose that is secured by 1 to 4 units of residential 
        real property (hereafter in this subsection referred to 
        as the `lender') shall provide the following to the 
        consumer as soon as reasonably practicable:
                    ``(A) Information required under subsection 
                (f).--
                            ``(i) In general.--A copy of the 
                        information identified in subsection 
                        (f) that was obtained from a consumer 
                        reporting agency or was developed and 
                        used by the user of the information.
                            ``(ii) Notice under subparagraph 
                        (D).--In addition to the information 
                        provided to it by a third party that 
                        provided the credit score or scores, a 
                        lender is only required to provide the 
                        notice contained in subparagraph (D).
                    ``(B) Disclosures in case of automated 
                underwriting system.--
                            ``(i) In general.--If a person that 
                        is subject to this subsection uses an 
                        automated underwriting system to 
                        underwrite a loan, that person may 
                        satisfy the obligationto provide a 
credit score by disclosing a credit score and associated key factors 
supplied by a consumer reporting agency.
                            ``(ii) Numerical credit score.--
                        However, if a numerical credit score is 
                        generated by an automated underwriting 
                        system used by an enterprise, and that 
                        score is disclosed to the person, the 
                        score shall be disclosed to the 
                        consumer consistent with subparagraph 
                        (C).
                            ``(iii) Enterprise defined.--For 
                        purposes of this subparagraph, the term 
                        `enterprise' has the same meaning as in 
                        paragraph (6) of section 1303 of the 
                        Federal Housing Enterprises Financial 
                        Safety and Soundness Act of 1992.
                    ``(C) Disclosures of credit scores not 
                obtained from a consumer reporting agency.--A 
                person that is subject to the provisions of 
                this subsection and that uses a credit score, 
                other than a credit score provided by a 
                consumer reporting agency, may satisfy the 
                obligation to provide a credit score by 
                disclosing a credit score and associated key 
                factors supplied by a consumer reporting 
                agency.
                    ``(D) Notice to home loan applicants.--A 
                copy of the following notice, which shall 
                include the name, address, and telephone number 
                of each consumer reporting agency providing a 
                credit score that was used:

                 `` `notice to the home loan applicant

    `` `In connection with your application for a home loan, 
the lender must disclose to you the score that a consumer 
reporting agency distributed to users and the lender used in 
connection with your home loan, and the key factors affecting 
your credit scores.
    `` `The credit score is a computer generated summary 
calculated at the time of the request and based on information 
that a consumer reporting agency or lender has on file. The 
scores are based on data about your credit history and payment 
patterns. Credit scores are important because they are used to 
assist the lender in determining whether you will obtain a 
loan. They may also be used to determine what interest rate you 
may be offered on the mortgage. Credit scores can change over 
time, depending on your conduct, how your credit history and 
payment patterns change, and how credit scoring technologies 
change.
    `` `Because the score is based on information in your 
credit history, it is very important that you review the 
credit-related information that is being furnished to make sure 
it is accurate. Credit records may vary from one company to 
another.
    `` `If you have questions about your credit score or the 
credit information that is furnished to you, contact the 
consumer reporting agency at the address and telephone number 
provided with this notice, or contact the lender, if the lender 
developed or generated the credit score. The consumer reporting 
agency plays no part in the decision to take any action on the 
loan application and is unable to provide you with specific 
reasons for the decision on a loan application.
    `` `If you have questions concerning the terms of the loan, 
contact the lender.'.
                    ``(E) Actions not required under this 
                subsection.--This subsection shall not require 
                any person to--
                            ``(i) explain the information 
                        provided pursuant to subsection (f);
                            ``(ii) disclose any information 
                        other than a credit score or key 
                        factors, as defined in subsection (f);
                            ``(iii) disclose any credit score 
                        or related information obtained by the 
                        user after a loan has closed;
                            ``(iv) provide more than 1 
                        disclosure per loan transaction; or
                            ``(v) provide the disclosure 
                        required by this subsection when 
                        another person has made the disclosure 
                        to the consumer for that loan 
                        transaction.
                    ``(F) No obligation for content.--
                            ``(i) In general.--The obligation 
                        of any person pursuant to this 
                        subsection shall be limited solely to 
                        providing a copy of the information 
                        that was received from the consumer 
                        reporting agency.
                            ``(ii) Limit on liability.--No 
                        person has liability under this 
                        subsection for the content of that 
                        information or for the omission of any 
                        information within the report provided 
                        by the consumer reporting agency.
                    ``(G) Person defined as excluding 
                enterprise.--As used in this subsection, the 
                term `person' does not include an enterprise 
                (as defined in paragraph (6) of section 1303 of 
                the Federal Housing Enterprises Financial 
                Safety and Soundness Act of 1992).
            ``(2) Prohibition on disclosure clauses null and 
        void.--
                    ``(A) In general.--Any provision in a 
                contract that prohibits the disclosure of a 
                credit score by a person who makes or arranges 
                loans or a consumer reporting agency is void.
                    ``(B) No liability for disclosure under 
                this subsection.--A lender shall not have 
                liability under any contractual provision for 
                disclosure of a credit score pursuant to this 
                subsection.''.
    (d) Inclusion of Key Factor in Credit Score Information in 
Consumer Report.--Section 605(d) of the Fair Credit Reporting 
Act (15 U.S.C. 1681c(d)) is amended--
            (1) by striking ``Disclosed.--Any consumer 
        reporting agency'' and inserting ``Disclosed.--
            ``(1) Title 11 information.--Any consumer reporting 
        agency''; and
            (2) by adding at the end the following new 
        paragraph:
            ``(2) Key factor in credit score information.--Any 
        consumer reporting agency that furnishes a consumer 
        report that contains any credit score or any other risk 
        score or predictor on any consumer shall include in the 
        report a clear and conspicuous statement that a key 
        factor (as defined in section 609(f)(2)(B)) that 
        adversely affected such score or predictor was the 
        number of enquiries, if such a predictor was in fact a 
        key factor that adversely affected such score. This 
        paragraph shall not apply to a check services company, 
        acting as such, which issues authorizations for the 
        purpose of approving or processing negotiable 
        instruments, electronic fund transfers, or similar 
        methods of payments, but only to the extent that such 
        company is engaged in such activities.''.
    (e) Technical and Conforming Amendments.--Section 625(b) of 
the Fair Credit Reporting Act (15 U.S.C. 1681t(b)), as so 
designated by section 214 of this Act, is amended--
            (1) by striking ``or'' at the end of paragraph (2); 
        and
            (2) by striking paragraph (3) and inserting the 
        following:
            ``(3) with respect to the disclosures required to 
        be made under subsection (c), (d), (e), or (g) of 
        section 609, or subsection (f) of section 609 relating 
        to the disclosure of credit scores for credit granting 
        purposes, except that this paragraph--
                    ``(A) shall not apply with respect to 
                sections 1785.10, 1785.16, and 1785.20.2 of the 
                California Civil Code (as in effect on the date 
                of enactment of the Fair and Accurate Credit 
                Transactions Act of 2003) and section 1785.15 
                through section 1785.15.2 of such Code (as in 
                effect on such date);
                    ``(B) shall not apply with respect to 
                sections 5-3-106(2) and 212-14.3-104.3 of the 
                Colorado Revised Statutes (as in effect on the 
                date of enactment of the Fair and Accurate 
                Credit Transactions Act of 2003); and
                    ``(C) shall not be construed as limiting, 
                annulling, affecting, or superseding any 
                provision of the laws of any State regulating 
                the use in an insurance activity, or regulating 
                disclosures concerning such use, of a credit-
                based insurance score of a consumer by any 
                person engaged in the business of insurance;
            ``(4) with respect to the frequency of any 
        disclosure under section 612(a), except that this 
        paragraph shall not apply--
                    ``(A) with respect to section 12-14.3-
                105(1)(d) of the Colorado Revised Statutes (as 
                in effect on the date of enactment of the Fair 
                and Accurate Credit Transactions Act of 2003);
                    ``(B) with respect to section 10-1-
                393(29)(C) of the Georgia Code (as in effect on 
                the date of enactment of the Fair and Accurate 
                Credit Transactions Act of 2003);
                    ``(C) with respect to section 1316.2 of 
                title 10 of the Maine Revised Statutes (as in 
                effect on the date of enactment of the Fair and 
                Accurate Credit Transactions Act of 2003);
                    ``(D) with respect to sections 14-
                1209(a)(1) and 14-1209(b)(1)(i) of the 
                Commercial Law Article of the Code of Maryland 
                (as in effect on the date of enactment of the 
                Fair and Accurate Credit Transactions Act of 
                2003);
                    ``(E) with respect to section 59(d) and 
                section 59(e) of chapter 93 of the General Laws 
                of Massachusetts (as in effect on the date of 
                enactment of the Fair and Accurate Credit 
                Transactions Act of 2003);
                    ``(F) with respect to section 56:11-
                37.10(a)(1) of the New Jersey Revised Statutes 
                (as in effect on the date of enactment of 
theFair and Accurate Credit Transactions Act of 2003); or
                    ``(G) with respect to section 2480c(a)(1) 
                of title 9 of the Vermont Statutes Annotated 
                (as in effect on the date of enactment of the 
                Fair and Accurate Credit Transactions Act of 
                2003); or''.

SEC. 213. ENHANCED DISCLOSURE OF THE MEANS AVAILABLE TO OPT OUT OF 
                    PRESCREENED LISTS.

    (a) Notice and Response Format for Users of Reports.--
Section 615(d)(2) of the Fair Credit Reporting Act (15 U.S.C. 
1681m(d)(2)) is amended to read as follows:
            ``(2) Disclosure of address and telephone number; 
        format.--A statement under paragraph (1) shall--
                    ``(A) include the address and toll-free 
                telephone number of the appropriate 
                notification system established under section 
                604(e); and
                    ``(B) be presented in such format and in 
                such type size and manner as to be simple and 
                easy to understand, as established by the 
                Commission, by rule, in consultation with the 
                Federal banking agencies and the National 
                Credit Union Administration.''.
    (b) Rulemaking Schedule.--Regulations required by section 
615(d)(2) of the Fair Credit Reporting Act, as amended by this 
section, shall be issued in final form not later than 1 year 
after the date of enactment of this Act.
    (c) Duration of Elections.--Section 604(e) of the Fair 
Credit Reporting Act (15 U.S.C. 1681b(e)) is amended in each of 
paragraphs (3)(A) and (4)(B)(i)), by striking ``2-year period'' 
each place that term appears and inserting ``5-year period''.
    (d) Public Awareness Campaign.--The Commission shall 
actively publicize and conspicuously post on its website any 
address and the toll-free telephone number established as part 
of a notification system for opting out of prescreening under 
section 604(e) of the Fair Credit Reporting Act (15 U.S.C. 
1681b(e)), and otherwise take measures to increase public 
awareness regarding the availability of the right to opt out of 
prescreening.
    (e) Analysis of Further Restrictions on Offers of Credit or 
Insurance.--
            (1) In general.--The Board shall conduct a study 
        of--
                    (A) the ability of consumers to avoid 
                receiving written offers of credit or insurance 
                in connection with transactions not initiated 
                by the consumer; and
                    (B) the potential impact that any further 
                restrictions on providing consumers with such 
                written offers of credit or insurance would 
                have on consumers.
            (2) Report.--The Board shall submit a report 
        summarizing the results of the study required under 
        paragraph (1) to the Congress not later than 12 months 
        after the date of enactment of this Act, together with 
        such recommendations for legislative or administrative 
        action as the Board may determine to be appropriate.
            (3) Content of report.--The report described in 
        paragraph (2) shall address the following issues:
                    (A) The current statutory or voluntary 
                mechanisms that are available to a consumer to 
                notify lenders and insurance providers that the 
                consumer does not wish to receive written 
                offers of credit or insurance.
                    (B) The extent to which consumers are 
                currently utilizing existing statutory and 
                voluntary mechanisms to avoid receiving offers 
                of credit or insurance.
                    (C) The benefits provided to consumers as a 
                result of receiving written offers of credit or 
                insurance.
                    (D) Whether consumers incur significant 
                costs or are otherwise adversely affected by 
                the receipt of written offers of credit or 
                insurance.
                    (E) Whether further restricting the ability 
                of lenders and insurers to provide written 
                offers of credit or insurance to consumers 
                would affect--
                            (i) the cost consumers pay to 
                        obtain credit or insurance;
                            (ii) the availability of credit or 
                        insurance;
                            (iii) consumers' knowledge about 
                        new or alternative products and 
                        services;
                            (iv) the ability of lenders or 
                        insurers to compete with one another; 
                        and
                            (v) the ability to offer credit or 
                        insurance products to consumers who 
                        have been traditionally underserved.

SEC. 214. AFFILIATE SHARING.

    (a) Limitation.--The Fair Credit Reporting Act (15 U.S.C. 
1601 et seq.) is amended--
            (1) by redesignating sections 624 (15 U.S.C. 
        1681t), 625 (15 U.S.C. 1681u), and 626 (15 U.S.C. 
        6181v) as sections 625, 626, and 627, respectively; and
            (2) by inserting after section 623 the following:

``Sec. 624. Affiliate sharing

    ``(a) Special Rule for Solicitation for Purposes of 
Marketing.--
            ``(1) Notice.--Any person that receives from 
        another person related to it by common ownership or 
        affiliated by corporate control a communication of 
        information that would be a consumer report, but for 
        clauses (i), (ii), and (iii) of section 603(d)(2)(A), 
        may not use the information to make a solicitation for 
        marketing purposes to a consumer about its products or 
        services, unless--
                    ``(A) it is clearly and conspicuously 
                disclosed to the consumer that the information 
                may be communicated among such persons for 
                purposes of making such solicitations to the 
                consumer; and
                    ``(B) the consumer is provided an 
                opportunity and a simple method to prohibit the 
                making of such solicitations to the consumer by 
                such person.
            ``(2) Consumer choice.--
                    ``(A) In general.--The notice required 
                under paragraph (1) shall allow the consumer 
                the opportunity to prohibit all solicitations 
                referred to in such paragraph, and may allow 
                the consumer to choose from different options 
                when electing to prohibit the sending of such 
                solicitations, including options regarding the 
                types of entities and information covered, and 
                which methods of delivering solicitations the 
                consumer elects to prohibit.
                    ``(B) Format.--Notwithstanding subparagraph 
                (A), the notice required under paragraph (1) 
                shall be clear, conspicuous, and concise, and 
                any method provided under paragraph (1)(B) 
                shall be simple. The regulations prescribed to 
                implement this section shall provide specific 
                guidance regarding how to comply with such 
                standards.
            ``(3) Duration.--
                    ``(A) In general.--The election of a 
                consumer pursuant to paragraph (1)(B) to 
                prohibit the making of solicitations shall be 
                effective for at least 5 years, beginning on 
                the date on which the person receives the 
                election of the consumer, unless the consumer 
                requests that such election be revoked.
                    ``(B) Notice upon expiration of effective 
                period.--At such time as the election of a 
                consumer pursuant to paragraph (1)(B) is no 
                longer effective, a person may not use 
                information that the person receives in the 
                manner described in paragraph (1) to make any 
                solicitation for marketing purposes to the 
                consumer, unless the consumer receives a notice 
                and an opportunity, using a simple method, to 
                extend the opt-out for another period of at 
                least 5 years, pursuant to the procedures 
                described in paragraph (1).
            ``(4) Scope.--This section shall not apply to a 
        person--
                    ``(A) using information to make a 
                solicitation for marketing purposes to a 
                consumer with whom the person has a pre-
                existing business relationship;
                    ``(B) using information to facilitate 
                communications to an individual for whose 
                benefit the person provides employee benefit or 
                other services pursuant to a contract with an 
                employer related to and arising out of the 
                current employment relationship or status of 
                the individual as a participant or beneficiary 
                of an employee benefit plan;
                    ``(C) using information to perform services 
                on behalf of another person related by common 
                ownership or affiliated by corporate control, 
                except that this subparagraph shall not be 
                construed as permitting a person to send 
                solicitations on behalf of another person, if 
                such other person would not be permitted to 
                send the solicitation on its own behalf as a 
                result of the election of the consumer to 
                prohibit solicitations under paragraph (1)(B);
                    ``(D) using information in response to a 
                communication initiated by the consumer;
                    ``(E) using information in response to 
                solicitations authorized or requested by the 
                consumer; or
                    ``(F) if compliance with this section by 
                that person would prevent compliance by that 
                person with any provision of State insurance 
                laws pertaining to unfair discrimination in any 
                State in which the person is lawfully doing 
                business.
            ``(5) No retroactivity.--This subsection shall not 
        prohibit the use of information to send a solicitation 
        to a consumer if such information was received prior to 
        the date on which persons are required to comply with 
        regulations implementing this subsection.
    ``(b) Notice for Other Purposes Permissible.--A notice or 
other disclosure under this section may be coordinated and 
consolidated with any other notice required to be issued under 
any other provision of law by a person that is subject to this 
section, and a notice or other disclosure that is equivalent to 
the notice required by subsection (a), and that is provided by 
a person described in subsection (a) to a consumer together 
with disclosures required by any other provision of law, shall 
satisfy the requirements of subsection (a).
    ``(c) User Requirements.--Requirements with respect to the 
use by a person of information received from another person 
related to it by common ownership or affiliated by corporate 
control, such as the requirements of this section, constitute 
requirements with respect to the exchange of information among 
persons affiliated by common ownership or common corporate 
control, within the meaning of section 625(b)(2).
    ``(d) Definitions.--For purposes of this section, the 
following definitions shall apply:
            ``(1) Pre-existing business relationship.--The term 
        `pre-existing business relationship' means a 
        relationship between a person, or a person's licensed 
        agent, and a consumer, based on--
                    ``(A) a financial contract between a person 
                and a consumer which is in force;
                    ``(B) the purchase, rental, or lease by the 
                consumer of that person's goods or services, or 
                a financial transaction (including holding an 
                active account or a policy in force or having 
                another continuing relationship) between the 
                consumer and that person during the 18-month 
                period immediately preceding the date on which 
                the consumer is sent a solicitation covered by 
                this section;
                    ``(C) an inquiry or application by the 
                consumer regarding a product or service offered 
                by that person, during the 3-month period 
                immediately preceding the date on which the 
                consumer is sent a solicitation covered by this 
                section; or
                    ``(D) any other pre-existing customer 
                relationship defined in the regulations 
                implementing this section.
            ``(2) Solicitation.--The term `solicitation' means 
        the marketing of a product or service initiated by a 
        person to a particular consumer that is based on an 
        exchange of information described in subsection (a), 
        and is intended to encourage the consumer to purchase 
        such product or service, but does not include 
        communications that are directed at the general public 
        or determined not to be a solicitation by the 
        regulations prescribed under this section.''.
    (b) Rulemaking Required.--
            (1) In general.--The Federal banking agencies, the 
        National Credit Union Administration, and the 
        Commission, with respect to the entities that are 
        subject to their respective enforcement authority under 
        section 621 of the Fair Credit Reporting Act and the 
        Securities and Exchange Commission, and in coordination 
        as described in paragraph (2), shall prescribe 
        regulations to implement section 624 of the Fair Credit 
        Reporting Act, as added by this section.
            (2) Coordination.--Each agency required to 
        prescribe regulations under paragraph (1) shall consult 
        and coordinate with each other such agency so that, to 
        the extent possible, the regulations prescribed by each 
        such entity are consistent and comparable with the 
        regulations prescribed by each other such agency.
            (3) Considerations.--In promulgating regulations 
        under this subsection, each agency referred to in 
        paragraph (1) shall--
                    (A) ensure that affiliate sharing 
                notification methods provide a simple means for 
                consumers to make determinations and choices 
                under section 624 of the Fair Credit Reporting 
                Act, as added by this section;
                    (B) consider the affiliate sharing 
                notification practices employed on the date of 
                enactment of this Act by persons that will be 
                subject to that section 624; and
                    (C) ensure that notices and disclosures may 
                be coordinated and consolidated, as provided in 
                subsection (b) of that section 624.
            (4) Timing.--Regulations required by this 
        subsection shall--
                    (A) be issued in final form not later than 
                9 months after the date of enactment of this 
                Act; and
                    (B) become effective not later than 6 
                months after the date on which they are issued 
                in final form.
    (c) Technical and Conforming Amendments.--
            (1) Definitions.--Section 603(d)(2)(A) of the Fair 
        Credit Reporting Act (15 U.S.C. 1681(d)(2)(A)) is 
        amended by inserting ``subject to section 624,'' after 
        ``(A)''.
            (2) Relation to state laws.--Section 625(b)(1) of 
        the Fair Credit Reporting Act (15 U.S.C. 1681t(b)(1)), 
        as so designated by subsection (a) of this section, is 
        amended--
                    (A) by striking ``or'' after the semicolon 
                at the end of subparagraph (E); and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(H) section 624, relating to the exchange 
                and use of information to make a solicitation 
                for marketing purposes; or''.
            (3) Cross reference correction.--Section 627(d) of 
        the Fair Credit Reporting Act (15 U.S.C. 1681v(d)), as 
        so designated by subsection (a) of this section, is 
        amended by striking ``section 625'' and inserting 
        ``section 626''.
            (4) Table of sections.--The table of sections for 
        title VI of the Consumer Credit Protection Act (15 
        U.S.C. 1601 et seq.) is amended by striking the items 
        relating to sections 624 through 626 and inserting the 
        following:

``624. Affiliate sharing.
``625. Relation to State laws.
``626. Disclosures to FBI for counterintelligence purposes.
``627. Disclosures to governmental agencies for counterintelligence 
          purposes.''

    (e) Studies of Information Sharing Practices.--
            (1) In general.--The Federal banking agencies, the 
        National Credit Union Administration, and the 
        Commission shall jointly conduct regular studies of the 
        consumer information sharing practices by financial 
        institutions and other persons that are creditors or 
        users of consumer reports with their affiliates.
            (2) Matters for study.--In conducting the studies 
        required by paragraph (1), the agencies described in 
        paragraph (1) shall--
                    (A) identify--
                            (i) the purposes for which 
                        financial institutions and other 
                        creditors and users of consumer reports 
                        share consumer information;
                            (ii) the types of information 
                        shared by such entities with their 
                        affiliates;
                            (iii) the number of choices 
                        provided to consumers with respect to 
                        the control of such sharing, and the 
                        degree to and manner in which consumers 
                        exercise such choices, if at all; and
                            (iv) whether such entities share or 
                        may share personally identifiable 
                        transaction or experience information 
                        with affiliates for purposes--
                                    (I) that are related to 
                                employment or hiring, including 
                                whether the person that is the 
                                subject of such information is 
                                given notice of such sharing, 
                                and the specific uses of such 
                                shared information; or
                                    (II) of general publication 
                                of such information; and
                    (B) specifically examine the information 
                sharing practices that financial institutions 
                and other creditors and users of consumer 
                reports and their affiliates employ for the 
                purpose of making underwriting decisions or 
                credit evaluations of consumers.
            (3) Reports.--
                    (A) Initial report.--Not later than 3 years 
                after the date of enactment of this Act, the 
                Federal banking agencies, the National Credit 
                Union Administration, and the Commission shall 
                jointly submit a report to the Congress on the 
                results of the initial study conducted in 
                accordance with this subsection, together with 
                any recommendations for legislative or 
                regulatory action.
                    (B) Followup reports.--The Federal banking 
                agencies, the National Credit Union 
                Administration, and the Commission shall, not 
                less frequently than once every 3 years 
                following the date of submission of the initial 
                report under subparagraph (A), jointly submit a 
                report to the Congress that, together with any 
                recommendations for legislative or regulatory 
                action--
                            (i) documents any changes in the 
                        areas of study referred to in paragraph 
                        (2)(A) occurring since the date of 
                        submission of the previous report;
                            (ii) identifies any changes in the 
                        practices of financial institutions and 
                        other creditors and users of consumer 
                        reports in sharing consumer information 
                        with their affiliates for the purpose 
                        of making underwriting decisions or 
                        credit evaluations of consumers 
                        occurring since the date of submission 
                        of the previous report; and
                            (iii) examines the effects that 
                        changes described in clause (ii) have 
                        had, if any, on the degree to which 
                        such affiliate sharing practices reduce 
                        the need for financial institutions, 
                        creditors, and other users of consumer 
                        reports to rely on consumer reports for 
                        such decisions.

SEC. 215. STUDY OF EFFECTS OF CREDIT SCORES AND CREDIT-BASED INSURANCE 
                    SCORES ON AVAILABILITY AND AFFORDABILITY OF 
                    FINANCIAL PRODUCTS.

    (a) Study Required.--The Commission and the Board, in 
consultation with the Office of Fair Housing and Equal 
Opportunity of the Department of Housing and Urban Development, 
shall conduct a study of--
            (1) the effects of the use of credit scores and 
        credit-based insurance scores on the availability and 
        affordability of financial products and services, 
        including credit cards, mortgages, auto loans, and 
        property and casualty insurance;
            (2) the statistical relationship, utilizing a 
        multivariate analysis that controls for prohibited 
        factors under the Equal Credit Opportunity Act and 
        other known risk factors, between credit scores and 
        credit-based insurance scores and the quantifiable 
        risks and actual losses experienced by businesses;
            (3) the extent to which, if any, the use of credit 
        scoring models, credit scores, and credit-based 
        insurance scores impact on the availability and 
        affordability of credit and insurance to the extent 
        information is currently available or is available 
        through proxies, by geography, income, ethnicity, race, 
        color, religion, national origin, age, sex, marital 
        status, and creed, including the extent to which the 
        consideration or lack of consideration of certain 
        factors by credit scoring systems could result in 
        negative or differential treatment of protected classes 
        under the Equal Credit Opportunity Act, and the extent 
        to which, if any, the use of underwriting systems 
        relying on these models could achieve comparable 
        results through the use of factors with less negative 
        impact; and
            (4) the extent to which credit scoring systems are 
        used by businesses, the factors considered by such 
        systems, and the effects of variables which are not 
        considered by such systems.
    (b) Public Participation.--The Commission shall seek public 
input about the prescribed methodology and research design of 
the study described in subsection (a), including from relevant 
Federal regulators, State insurance regulators, community, 
civil rights, consumer, and housing groups.
    (c) Report Required.--
            (1) In general.--Before the end of the 24-month 
        period beginning on the date of enactment of this Act, 
        the Commission shall submit a detailed report on the 
        study conducted pursuant to subsection (a) to the 
        Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate.
            (2) Contents of report.--The report submitted under 
        paragraph (1) shall include the findings and 
        conclusions of the Commission, recommendations to 
        address specific areas of concerns addressed in the 
        study, and recommendations for legislative or 
        administrative action that the Commission may determine 
        to be necessary to ensure that credit and credit-based 
        insurance scores are used appropriately and fairly to 
        avoid negative effects.

SEC. 216. DISPOSAL OF CONSUMER REPORT INFORMATION AND RECORDS.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
1681 et seq.), as amended by this Act, is amended by adding at 
the end the following:

``Sec. 628. Disposal of records

    ``(a) Regulations.--
            ``(1) In general.--Not later than 1 year after the 
        date of enactment of this section, the Federal banking 
        agencies, the National Credit Union Administration, and 
        the Commission with respect to the entities that are 
        subject to their respective enforcement authority under 
        section 621, and the Securities and Exchange 
        Commission, and in coordination as described in 
        paragraph (2), shall issue final regulations requiring 
        any person that maintains or otherwise possesses 
        consumer information, or any compilation of consumer 
        information, derived from consumer reports for a 
        business purpose to properly dispose of any such 
        information or compilation.
            ``(2) Coordination.--Each agency required to 
        prescribe regulations under paragraph (1) shall--
                    ``(A) consult and coordinate with each 
                other such agency so that, to the extent 
                possible, the regulations prescribed by each 
                such agency are consistent and comparable with 
                the regulations by each such other agency; and
                    ``(B) ensure that such regulations are 
                consistent with the requirements and 
                regulations issued pursuant to Public Law 106-
                102 and other provisions of Federal law.
            ``(3) Exemption authority.--In issuing regulations 
        under this section, the Federal banking agencies, the 
        National Credit Union Administration, the Commission, 
        and the Securities and Exchange Commission may exempt 
        any person or class of persons from application of 
        those regulations, as such agency deems appropriate to 
        carry out the purpose of this section.
    ``(b) Rule of Construction.--Nothing in this section shall 
be construed--
            ``(1) to require a person to maintain or destroy 
        any record pertaining to a consumer that is not imposed 
        under other law; or
            ``(2) to alter or affect any requirement imposed 
        under any other provision of law to maintain or destroy 
        such a record.''.
    (b) Clerical Amendment.--The table of sections for title VI 
of the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) 
is amended by inserting after the item relating to section 627, 
as added by section 214 of this Act, the following:

``628. Disposal of records.
``629. Corporate and technological circumvention prohibited.''.

SEC. 217. REQUIREMENT TO DISCLOSE COMMUNICATIONS TO A CONSUMER 
                    REPORTING AGENCY.

    (a) In General.--Section 623(a) of the Fair Credit 
Reporting Act (15 U.S.C. 1681s-2(a)) as amended by this Act, is 
amended by inserting after paragraph (6), the following new 
paragraph:
            ``(7) Negative information.--
                    ``(A) Notice to consumer required.--
                            ``(i) In general.--If any financial 
                        institution that extends credit and 
                        regularly and in the ordinary course of 
                        business furnishes information to a 
                        consumer reporting agency described in 
                        section 603(p) furnishes negative 
                        information to such an agency regarding 
                        credit extended to a customer, the 
                        financial institution shall provide a 
                        notice of such furnishing of negative 
                        information, in writing, to the 
                        customer.
                            ``(ii) Notice effective for 
                        subsequent submissions.--After 
                        providing such notice, the financial 
                        institution may submit additional 
                        negative information to a consumer 
                        reporting agency described in section 
                        603(p) with respect to the same 
                        transaction, extension of credit, 
                        account, or customer without providing 
                        additional notice to the customer.
                    ``(B) Time of notice.--
                            ``(i) In general.--The notice 
                        required under subparagraph (A) shall 
                        be provided to the customer prior to, 
                        or no later than 30 days after, 
                        furnishing the negative information to 
                        a consumer reporting agency described 
                        in section 603(p).
                            ``(ii) Coordination with new 
                        account disclosures.--If the notice is 
                        provided to the customer prior to 
                        furnishing the negative information to 
                        a consumer reporting agency, the notice 
                        may not be included in the initial 
                        disclosures providedunder section 
                        127(a) of the Truth in Lending Act.
                    ``(C) Coordination with other 
                disclosures.--The notice required under 
                subparagraph (A)--
                            ``(i) may be included on or with 
                        any notice of default, any billing 
                        statement, or any other materials 
                        provided to the customer; and
                            ``(ii) must be clear and 
                        conspicuous.
                    ``(D) Model disclosure.--
                            ``(i) Duty of board to prepare.--
                        The Board shall prescribe a brief model 
                        disclosure a financial institution may 
                        use to comply with subparagraph (A), 
                        which shall not exceed 30 words.
                            ``(ii) Use of model not required.--
                        No provision of this paragraph shall be 
                        construed as requiring a financial 
                        institution to use any such model form 
                        prescribed by the Board.
                            ``(iii) Compliance using model.--A 
                        financial institution shall be deemed 
                        to be in compliance with subparagraph 
                        (A) if the financial institution uses 
                        any such model form prescribed by the 
                        Board, or the financial institution 
                        uses any such model form and rearranges 
                        its format.
                    ``(E) Use of notice without submitting 
                negative information.--No provision of this 
                paragraph shall be construed as requiring a 
                financial institution that has provided a 
                customer with a notice described in 
                subparagraph (A) to furnish negative 
                information about the customer to a consumer 
                reporting agency.
                    ``(F) Safe harbor.--A financial institution 
                shall not be liable for failure to perform the 
                duties required by this paragraph if, at the 
                time of the failure, the financial institution 
                maintained reasonable policies and procedures 
                to comply with this paragraph or the financial 
                institution reasonably believed that the 
                institution is prohibited, by law, from 
                contacting the consumer.
                    ``(G) Definitions.--For purposes of this 
                paragraph, the following definitions shall 
                apply:
                            ``(i) Negative information.--The 
                        term `negative information' means 
                        information concerning a customer's 
                        delinquencies, late payments, 
                        insolvency, or any form of default.
                            ``(ii) Customer; financial 
                        institution.--The terms `customer' and 
                        `financial institution' have the same 
                        meanings as in section 509 Public Law 
                        106-102.''.
    (b) Model Disclosure Form.--Before the end of the 6-month 
period beginning on the date of enactment of this Act, the 
Board shall adopt the model disclosure required under the 
amendment made by subsection (a) after notice duly given in the 
Federal Register and an opportunity for public comment in 
accordance with section 553 of title 5, United States Code.

    TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION

SEC. 311. RISK-BASED PRICING NOTICE.

    (a) Duties of Users.--Section 615 of the Fair Credit 
Reporting Act (15 U.S.C. 1681m), as amended by this Act, is 
amended by adding at the end the following:
    ``(h) Duties of Users in Certain Credit Transactions.--
            ``(1) In general.--Subject to rules prescribed as 
        provided in paragraph (6), if any person uses a 
        consumer report in connection with an application for, 
        or a grant, extension, or other provision of, credit on 
        material terms that are materially less favorable than 
        the most favorable terms available to a substantial 
        proportion of consumers from or through that person, 
        based in whole or in part on a consumer report, the 
        person shall provide an oral, written, or electronic 
        notice to the consumer in the form and manner required 
        by regulations prescribed in accordance with this 
        subsection.
            ``(2) Timing.--The notice required under paragraph 
        (1) may be provided at the time of an application for, 
        or a grant, extension, or other provision of, credit or 
        the time of communication of an approval of an 
        application for, or grant, extension, or other 
        provision of, credit, except as provided in the 
        regulations prescribed under paragraph (6).
            ``(3) Exceptions.--No notice shall be required from 
        a person under this subsection if--
                    ``(A) the consumer applied for specific 
                material terms and was granted those terms, 
                unless those terms were initially specified by 
                the person after the transaction was initiated 
                by the consumer and after the person obtained a 
                consumer report; or
                    ``(B) the person has provided or will 
                provide a notice to the consumer under 
                subsection (a) in connection with the 
                transaction.
            ``(4) Other notice not sufficient.--A person that 
        is required to provide a notice under subsection (a) 
        cannot meet that requirement by providing a notice 
        under this subsection.
            ``(5) Content and delivery of notice.--A notice 
        under this subsection shall, at a minimum--
                    ``(A) include a statement informing the 
                consumer that the terms offered to the consumer 
                are set based on information from a consumer 
                report;
                    ``(B) identify the consumer reporting 
                agency furnishing the report;
                    ``(C) include a statement informing the 
                consumer that the consumer may obtain a copy of 
                a consumer report from that consumer reporting 
                agency without charge; and
                    ``(D) include the contact information 
                specified by that consumer reporting agency for 
                obtaining such consumer reports (including a 
                toll-free telephone number established by the 
                agency in the case of a consumer reporting 
                agency described in section 603(p)).
            ``(6) Rulemaking.--
                    ``(A) Rules required.--The Commission and 
                the Board shall jointly prescribe rules.
                    ``(B) Content.--Rules required by 
                subparagraph (A) shall address, but are not 
                limited to--
                            ``(i) the form, content, time, and 
                        manner of delivery of any notice under 
                        this subsection;
                            ``(ii) clarification of the meaning 
                        of terms used in this subsection, 
                        including what credit terms are 
                        material, and when credit terms are 
                        materially less favorable;
                            ``(iii) exceptions to the notice 
                        requirement under this subsection for 
                        classes of persons or transactions 
                        regarding which the agencies determine 
                        that notice would not significantly 
                        benefit consumers;
                            ``(iv) a model notice that may be 
                        used to comply with this subsection; 
                        and
                            ``(v) the timing of the notice 
                        required under paragraph (1), including 
                        the circumstances under which the 
                        notice must be provided after the terms 
                        offered to the consumer were set based 
                        on information from a consumer report.
            ``(7) Compliance.--A person shall not be liable for 
        failure to perform the duties required by this section 
        if, at the time of the failure, the person maintained 
        reasonable policies and procedures to comply with this 
        section.
            ``(8) Enforcement.--
                    ``(A) No civil actions.--Sections 616 and 
                617 shall not apply to any failure by any 
                person to comply with this section.
                    ``(B) Administrative enforcement.--This 
                section shall be enforced exclusively under 
                section 621 by the Federal agencies and 
                officials identified in that section.''.
    (b) Relation to State Laws.--Section 625(b)(1) of the Fair 
Credit Reporting Act (15 U.S.C. 1681t(b)(1)), as so designated 
by section 214 of this Act, is amended by adding at the end the 
following:
                    ``(I) section 615(h), relating to the 
                duties of users of consumer reports to provide 
                notice with respect to terms in certain credit 
                transactions;''.

SEC. 312. PROCEDURES TO ENHANCE THE ACCURACY AND INTEGRITY OF 
                    INFORMATION FURNISHED TO CONSUMER REPORTING 
                    AGENCIES.

    (a) Accuracy Guidelines and Regulations.--Section 623 of 
the Fair Credit Reporting Act (15 U.S.C.15 U.S.C. 1681s-2) is 
amended by adding at the end the following:
    ``(e) Accuracy Guidelines and Regulations Required.--
            ``(1) Guidelines.--The Federal banking agencies, 
        the National Credit Union Administration, and the 
        Commission shall, with respect to the entities that are 
        subject to their respective enforcement authority under 
        section 621, and in coordination as described in 
        paragraph (2)--
                    ``(A) establish and maintain guidelines for 
                use by each person that furnishes information 
                to a consumer reporting agency regarding the 
                accuracy and integrity of the information 
                relating to consumers that such entities 
                furnish to consumer reporting agencies, and 
                update such guidelines as often as necessary; 
                and
                    ``(B) prescribe regulations requiring each 
                person that furnishes information to a consumer 
                reporting agency to establish reasonable 
                policies and procedures for implementing the 
                guidelines established pursuant to subparagraph 
                (A).
            ``(2) Coordination.--Each agency required to 
        prescribe regulations under paragraph (1) shall consult 
        and coordinate with each other such agency so that, to 
        the extent possible, the regulations prescribed by each 
        such entity are consistent and comparable with the 
        regulations prescribed by each other such agency.
            ``(3) Criteria.--In developing the guidelines 
        required by paragraph (1)(A), the agencies described in 
        paragraph (1) shall--
                    ``(A) identify patterns, practices, and 
                specific forms of activity that can compromise 
                the accuracy and integrity of information 
                furnished to consumer reporting agencies;
                    ``(B) review the methods (including 
                technological means) used to furnish 
                information relating to consumers to consumer 
                reporting agencies;
                    ``(C) determine whether persons that 
                furnish information to consumer reporting 
                agencies maintain and enforce policies to 
                assure the accuracy and integrity of 
                information furnished to consumer reporting 
                agencies; and
                    ``(D) examine the policies and processes 
                that persons that furnish information to 
                consumer reporting agencies employ to conduct 
                reinvestigations and correct inaccurate 
                information relating to consumers that has been 
                furnished to consumer reporting agencies.''.
    (b) Duty of Furnishers To Provide Accurate Information.--
Section 623(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 
1681s-2(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``knows or 
        consciously avoids knowing that the information is 
        inaccurate'' and inserting ``knows or has reasonable 
        cause to believe that the information is inaccurate''; 
        and
            (2) by adding at the end the following:
                    ``(D) Definition.--For purposes of 
                subparagraph (A), the term `reasonable cause to 
                believe that the information is inaccurate' 
                means having specific knowledge, other than 
                solely allegations by the consumer, that would 
                cause a reasonable person to have substantial 
                doubts about the accuracy of the 
                information.''.
    (c) Ability of Consumer To Dispute Information Directly 
With Furnisher.--Section 623(a) of the Fair Credit Reporting 
Act (15 U.S.C. 1681s-2(a)), as amended by this Act, is amended 
by adding at the end the following:
            ``(8) Ability of consumer to dispute information 
        directly with furnisher.--
                    ``(A) In general.--The Federal banking 
                agencies, the National Credit Union 
                Administration, and the Commission shall 
                jointly prescribe regulations that shall 
                identify the circumstances under which a 
                furnisher shall be required to reinvestigate a 
                dispute concerning the accuracy of information 
                contained in a consumer report on the consumer, 
                based on a direct request of a consumer.
                    ``(B) Considerations.--In prescribing 
                regulations under subparagraph (A), the 
                agencies shall weigh--
                            ``(i) the benefits to consumers 
                        with the costs on furnishers and the 
                        credit reporting system;
                            ``(ii) the impact on the overall 
                        accuracy and integrity of consumer 
                        reports of any such requirements;
                            ``(iii) whether direct contact by 
                        the consumer with the furnisher would 
                        likely result in the most expeditious 
                        resolution of any such dispute; and
                            ``(iv) the potential impact on the 
                        credit reporting process if credit 
                        repair organizations, as defined in 
                        section 403(3), including entities that 
                        would be a credit repair organization, 
                        but for section 403(3)(B)(i), are able 
                        to circumvent the prohibition in 
                        subparagraph (G).
                    ``(C) Applicability.--Subparagraphs (D) 
                through (G) shall apply in any circumstance 
                identified under the regulations promulgated 
                under subparagraph (A).
                    ``(D) Submitting a notice of dispute.--A 
                consumer who seeks to dispute the accuracy of 
                information shall provide a dispute notice 
                directly to such person at the address 
                specified by the person for such notices that--
                            ``(i) identifies the specific 
                        information that is being disputed;
                            ``(ii) explains the basis for the 
                        dispute; and
                            ``(iii) includes all supporting 
                        documentation required by the furnisher 
                        to substantiate the basis of the 
                        dispute.
                    ``(E) Duty of person after receiving notice 
                of dispute.--After receiving a notice of 
                dispute from a consumer pursuant to 
                subparagraph (D), the person that provided the 
                information in dispute to a consumer reporting 
                agency shall--
                            ``(i) conduct an investigation with 
                        respect to the disputed information;
                            ``(ii) review all relevant 
                        information provided by the consumer 
                        with the notice;
                            ``(iii) complete such person's 
                        investigation of the dispute and report 
                        the results of the investigation to the 
                        consumer before the expiration of the 
                        period under section 611(a)(1) within 
                        which a consumer reporting agency would 
                        be required to complete its action if 
                        the consumer had elected to dispute the 
                        information under that section; and
                            ``(iv) if the investigation finds 
                        that the information reported was 
                        inaccurate, promptly notify each 
                        consumer reporting agency to which the 
                        person furnished the inaccurate 
                        information of that determination and 
                        provide to the agency any correction to 
                        that information that is necessary to 
                        make the information provided by the 
                        person accurate.
                    ``(F) Frivolous or irrelevant dispute.--
                            ``(i) In general.--This paragraph 
                        shall not apply if the person receiving 
                        a notice of a dispute from a consumer 
                        reasonably determines that the dispute 
                        is frivolous or irrelevant, including--
                                    ``(I) by reason of the 
                                failure of a consumer to 
                                provide sufficient information 
                                to investigate the disputed 
                                information; or
                                    ``(II) the submission by a 
                                consumer of a dispute that is 
                                substantially the same as a 
                                dispute previously submitted by 
                                or for the consumer, either 
                                directly to the person or 
                                through a consumer reporting 
                                agency under subsection (b), 
                                with respect to which the 
                                person has already performed 
                                the person's duties under this 
                                paragraph or subsection (b), as 
                                applicable.
                            ``(ii) Notice of determination.--
                        Upon making any determination under 
                        clause (i) that a dispute is frivolous 
                        or irrelevant, the person shall notify 
                        the consumer of such determination not 
                        later than 5 business days after making 
                        such determination, by mail or, if 
                        authorized by the consumer for that 
                        purpose, by any other means available 
                        to the person.
                            ``(iii) Contents of notice.--A 
                        notice under clause (ii) shall 
                        include--
                                    ``(I) the reasons for the 
                                determination under clause (i); 
                                and
                                    ``(II) identification of 
                                any information required to 
                                investigate the disputed 
                                information, which may consist 
                                of a standardized form 
                                describing the general nature 
                                of such information.
                    ``(G) Exclusion of credit repair 
                organizations.--This paragraph shall not apply 
                if the notice of the dispute is submitted by, 
                is prepared on behalf of the consumer by, or is 
                submitted on a form supplied to the consumer 
                by, a credit repair organization, as defined in 
                section 403(3), or an entity that would be a 
                credit repair organization, but for section 
                403(3)(B)(i).''.
    (d) Furnisher Liability Exception.--Section 623(a)(5) of 
the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)(5)) is 
amended--
            (1) by striking ``A person'' and inserting the 
        following:
                    ``(A) In general.--A person'';
            (2) by inserting ``date of delinquency on the 
        account, which shall be the'' before ``month'';
            (3) by inserting ``on the account'' before ``that 
        immediately preceded''; and
            (4) by adding at the end the following:
                    ``(B) Rule of construction.--For purposes 
                of this paragraph only, and provided that the 
                consumer does not dispute the information, a 
                person that furnishes information on a 
                delinquent account that is placed for 
                collection, charged for profit or loss, or 
                subjected to any similar action, complies with 
                this paragraph, if--
                            ``(i) the person reports the same 
                        date of delinquency as that provided by 
                        the creditor to which the account was 
                        owed at the time at which the 
                        commencement of the delinquency 
                        occurred, if the creditor previously 
                        reported that date of delinquency to a 
                        consumer reporting agency;
                            ``(ii) the creditor did not 
                        previously report the date of 
                        delinquency to a consumer reporting 
                        agency, and the person establishes and 
                        follows reasonable procedures to obtain 
                        the date of delinquency from the 
                        creditor or another reliable source and 
                        reports that date to a consumer 
                        reporting agency as the date of 
                        delinquency; or
                            ``(iii) the creditor did not 
                        previously report the date of 
                        delinquency to a consumer reporting 
                        agency and the date of delinquency 
                        cannot be reasonably obtained as 
                        provided in clause (ii), the person 
                        establishes and follows reasonable 
                        procedures to ensure the date reported 
                        as the date of delinquency precedes the 
                        date on which the account is placed for 
                        collection, charged to profit or loss, 
                        or subjected to any similar action, and 
                        reports such date to the credit 
                        reporting agency.''.
    (e) Liability and Enforcement.--
            (1) Civil liability.--Section 623 of the Fair 
        Credit Reporting Act (15 U.S.C. 1681s-2) is amended by 
        striking subsections (c) and (d) and inserting the 
        following:
    ``(c) Limitation on Liability.--Except as provided in 
section 621(c)(1)(B), sections 616 and 617 do not apply to any 
violation of--
            ``(1) subsection (a) of this section, including any 
        regulations issued thereunder;
            ``(2) subsection (e) of this section, except that 
        nothing in this paragraph shall limit, expand, or 
        otherwise affect liability under section 616 or 617, as 
        applicable, for violations of subsection (b) of this 
        section; or
            ``(3) subsection (e) of section 615.
    ``(d) Limitation on Enforcement.--The provisions of law 
described in paragraphs (1) through (3) of subsection (c) 
(other than with respect to the exception described in 
paragraph (2) of subsection (c)) shall be enforced exclusively 
as provided under section 621 by the Federal agencies and 
officials and the State officials identified in section 621.''.
            (2) State actions.--Section 621(c) of the Fair 
        Credit Reporting Act (15 U.S.C. 1681s(c)) is amended--
                    (A) in paragraph (1)(B)(ii), by striking 
                ``of section 623(a)'' and inserting ``described 
                in anyof paragraphs (1) through (3) of section 
623(c)''; and
                    (B) in paragraph (5)--
                            (i) in each of subparagraphs (A) 
                        and (B), by striking ``of section 
                        623(a)(1)'' each place that term 
                        appears and inserting ``described in 
                        any of paragraphs (1) through (3) of 
                        section 623(c)''; and
                            (ii) by amending the paragraph 
                        heading to read as follows:
            ``(5) Limitations on state actions for certain 
        violations.--''.
    (f) Rule of Construction.--Nothing in this section, the 
amendments made by this section, or any other provision of this 
Act shall be construed to affect any liability under section 
616 or 617 of the Fair Credit Reporting Act (15 U.S.C. 1681n, 
1681o) that existed on the day before the date of enactment of 
this Act.

SEC. 313. FTC AND CONSUMER REPORTING AGENCY ACTION CONCERNING 
                    COMPLAINTS.

    (a) In General.--Section 611 of the Fair Credit Reporting 
Act (15 U.S.C. 1681i) is amended by adding at the end the 
following:
    ``(e) Treatment of Complaints and Report to Congress.--
            ``(1) In general.--The Commission shall--
                    ``(A) compile all complaints that it 
                receives that a file of a consumer that is 
                maintained by a consumer reporting agency 
                described in section 603(p) contains incomplete 
                or inaccurate information, with respect to 
                which, the consumer appears to have disputed 
                the completeness or accuracy with the consumer 
                reporting agency or otherwise utilized the 
                procedures provided by subsection (a); and
                    ``(B) transmit each such complaint to each 
                consumer reporting agency involved.
            ``(2) Exclusion.--Complaints received or obtained 
        by the Commission pursuant to its investigative 
        authority under the Federal Trade Commission Act shall 
        not be subject to paragraph (1).
            ``(3) Agency responsibilities.--Each consumer 
        reporting agency described in section 603(p) that 
        receives a complaint transmitted by the Commission 
        pursuant to paragraph (1) shall--
                    ``(A) review each such complaint to 
                determine whether all legal obligations imposed 
                on the consumer reporting agency under this 
                title (including any obligation imposed by an 
                applicable court or administrative order) have 
                been met with respect to the subject matter of 
                the complaint;
                    ``(B) provide reports on a regular basis to 
                the Commission regarding the determinations of 
                and actions taken by the consumer reporting 
                agency, if any, in connection with its review 
                of such complaints; and
                    ``(C) maintain, for a reasonable time 
                period, records regarding the disposition of 
                each such complaint that is sufficient to 
                demonstrate compliance with this subsection.
            ``(4) Rulemaking authority.--The Commission may 
        prescribe regulations, as appropriate to implement this 
        subsection.
            ``(5) Annual report.--The Commission shall submit 
        to the Committee on Banking, Housing, and Urban Affairs 
        of the Senate and the Committee on Financial Services 
        of the House of Representatives an annual report 
        regarding information gathered by the Commission under 
        this subsection.''.
    (b) Prompt Investigation of Disputed Consumer 
Information.--
            (1) Study required.--The Board and the Commission 
        shall jointly 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, the completeness of the 
        information provided to consumer reporting agencies, 
        and the prompt correction or deletion, in accordance 
        with such Act, of any inaccurate or incomplete 
        information or information that cannot be verified.
            (2) Report required.--Before the end of the 12-
        month period beginning on the date of enactment of this 
        Act, the Board and the Commission shall jointly submit 
        a progress report to the Congress on the results of the 
        study required under paragraph (1).
            (3) Considerations.--In preparing the report 
        required under paragraph (2), the Board and the 
        Commission shall consider information relating to 
        complaints compiled by the Commission under section 
        611(e) of the Fair Credit Reporting Act, as added by 
        this section.
            (4) Recommendations.--The report required under 
        paragraph (2) shall include such recommendations as the 
        Board and the Commission jointly determine to be 
        appropriate for legislative or administrative action, 
        to ensure that--
                    (A) 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 corrected or deleted immediately 
                thereafter;
                    (B) 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
                    (C) 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.

SEC. 314. IMPROVED DISCLOSURE OF THE RESULTS OF REINVESTIGATION.

    (a) In General.--Section 611(a)(5)(A) of the Fair Credit 
Reporting Act (15 U.S.C. 1681i(a)(5)(A)) is amended by striking 
``shall'' and all that follows through the end of the 
subparagraph, and inserting the following: ``shall--
                            ``(i) promptly delete that item of 
                        information from the file of the 
                        consumer, or modify that item of 
                        information, as appropriate, based on 
                        the results of the reinvestigation; and
                            ``(ii) promptly notify the 
                        furnisher of that information that the 
                        information has been modified or 
                        deleted from the file of the 
                        consumer.''.
    (b) Furnisher Requirements Relating to Inaccurate, 
Incomplete, or Unverifiable Information.--Section 623(b)(1) of 
the Fair Credit Reporting Act (15 U.S.C. 1681s-2(b)(1)) is 
amended--
            (1) in subparagraph (C), by striking ``and'' at the 
        end; and
            (2) in subparagraph (D), by striking the period at 
        the end and inserting the following: ``; and
                    ``(E) if an item of information disputed by 
                a consumer is found to be inaccurate or 
                incomplete or cannot be verified after any 
                reinvestigation under paragraph (1), for 
                purposes of reporting to a consumer reporting 
                agency only, as appropriate, based on the 
                results of the reinvestigation promptly--
                            ``(i) modify that item of 
                        information;
                            ``(ii) delete that item of 
                        information; or
                            ``(iii) permanently block the 
                        reporting of that item of 
                        information.''.

SEC. 315. RECONCILING ADDRESSES.

    Section 605 of the Fair Credit Reporting Act (15 U.S.C. 
1681c), as amended by this Act, is amended by adding at the end 
the following:
    ``(h) Notice of Discrepancy in Address.--
            ``(1) In general.--If a person has requested a 
        consumer report relating to a consumer from a consumer 
        reporting agency described in section 603(p), the 
        request includes an address for the consumer that 
        substantially differs from the addresses in the file of 
        the consumer, and the agency provides a consumer report 
        in response to the request, the consumer reporting 
        agency shall notify the requester of the existence of 
        the discrepancy.
            ``(2) Regulations.--
                    ``(A) Regulations required.--The Federal 
                banking agencies, the National Credit Union 
                Administration, and the Commission shall 
                jointly, with respect to the entities that are 
                subject to their respective enforcement 
                authority under section 621, prescribe 
                regulations providing guidance regarding 
                reasonable policies and procedures that a user 
                of a consumer report should employ when such 
                user has received a notice of discrepancy under 
                paragraph (1).
                    ``(B) Policies and procedures to be 
                included.--The regulations prescribed under 
                subparagraph (A) shall describe reasonable 
                policies and procedures for use by a user of a 
                consumer report--
                            ``(i) to form a reasonable belief 
                        that the user knows the identity of the 
                        person to whom the consumer report 
                        pertains; and
                            ``(ii) if the user establishes a 
                        continuing relationship with the 
                        consumer, and the user regularly and in 
                        the ordinary course of business 
                        furnishes information to the consumer 
                        reporting agency from which the notice 
                        of discrepancy pertaining to the 
                        consumer was obtained, to reconcile the 
                        address of the consumer with the 
                        consumer reporting agency by furnishing 
                        such address to such consumer reporting 
                        agency as part of information regularly 
                        furnished by the user for the period in 
                        which the relationship is 
                        established.''.

SEC. 316. NOTICE OF DISPUTE THROUGH RESELLER.

    (a) Requirement for Reinvestigation of Disputed Information 
Upon Notice From a Reseller.--Section 611(a) of the Fair Credit 
Reporting Act (15 U.S.C. 1681i(a)(1)(A)) is amended--
            (1) in paragraph (1)(A)--
                    (A) by striking ``If the completeness'' and 
                inserting ``Subject to subsection (f), if the 
                completeness'';
                    (B) by inserting ``, or indirectly through 
                a reseller,'' after ``notifies the agency 
                directly''; and
                    (C) by inserting ``or reseller'' before the 
                period at the end;
            (2) in paragraph (2)(A)--
                    (A) by inserting ``or a reseller'' after 
                ``dispute from any consumer''; and
                    (B) by inserting ``or reseller'' before the 
                period at the end; and
            (3) in paragraph (2)(B), by inserting ``or the 
        reseller'' after ``from the consumer''.
    (b) Reinvestigation Requirement Applicable to Resellers.--
Section 611 of the Fair Credit Reporting Act (15 U.S.C. 1681i), 
as amended by this Act, is amended by adding at the end the 
following:
    ``(f) Reinvestigation Requirement Applicable to 
Resellers.--
            ``(1) Exemption from general reinvestigation 
        requirement.--Except as provided in paragraph (2), a 
        reseller shall be exempt from the requirements of this 
        section.
            ``(2) Action required upon receiving notice of a 
        dispute.--If a reseller receives a notice from a 
        consumer of a dispute concerning the completeness or 
        accuracy of any item of information contained in a 
        consumer report on such consumer produced by the 
        reseller, the reseller shall, within 5 business days of 
        receiving the notice, and free of charge--
                    ``(A) determine whether the item of 
                information is incomplete or inaccurate as a 
                result of an act or omission of the reseller; 
                and
                    ``(B) if--
                            ``(i) the reseller determines that 
                        the item of information is incomplete 
                        or inaccurate as a result of an act or 
                        omission of the reseller, not later 
                        than 20 days after receiving the 
                        notice, correct the information in the 
                        consumer report or delete it; or
                            ``(ii) if the reseller determines 
                        that the item of information is not 
                        incomplete or inaccurate as a result of 
                        an act or omission of the reseller, 
                        convey the notice of the dispute, 
                        together with all relevant information 
                        provided by the consumer, to each 
                        consumer reporting agency that provided 
                        the reseller with the information that 
                        is the subject of the dispute, using an 
                        address or a notification mechanism 
                        specified by the consumer reporting 
                        agency for such notices.
            ``(3) Responsibility of consumer reporting agency 
        to notify consumer through reseller.--Upon the 
        completion of a reinvestigation under this section of a 
        dispute concerning the completeness or accuracy of any 
        information in the file of a consumer by a consumer 
        reporting agency that received notice of the dispute 
        from a reseller under paragraph (2)--
                    ``(A) the notice by the consumer reporting 
                agency under paragraph (6), (7), or (8) of 
                subsection (a) shall be provided to the 
                reseller in lieu of the consumer; and
                    ``(B) the reseller shall immediately 
                reconvey such notice to the consumer, including 
                any notice of a deletion by telephone in the 
                manner required under paragraph (8)(A).
            ``(4) Reseller reinvestigations.--No provision of 
        this subsection shall be construed as prohibiting a 
        reseller from conducting a reinvestigation of a 
        consumer dispute directly.''.
    (c) Technical and Conforming Amendment.--Section 
611(a)(2)(B) of the Fair Credit Reporting Act (15 U.S.C. 
1681i(a)(2)(B)) is amended in the subparagraph heading, by 
striking ``from consumer''.

SEC. 317. REASONABLE REINVESTIGATION REQUIRED.

    Section 611(a)(1)(A) of the Fair Credit Reporting Act (15 
U.S.C. 1681i(a)(1)(A)) is amended by striking ``shall 
reinvestigate free of charge'' and inserting ``shall, free of 
charge, conduct a reasonable reinvestigation to determine 
whether the disputed information is inaccurate''.

SEC. 318. FTC STUDY OF ISSUES RELATING TO THE FAIR CREDIT REPORTING 
                    ACT.

    (a) Study Required.--
            (1) In general.--The Commission shall conduct a 
        study on ways to improve the operation of the Fair 
        Credit Reporting Act.
            (2) Areas for study.--In conducting the study under 
        paragraph (1), the Commission shall review--
                    (A) the efficacy of increasing the number 
                of points of identifying information that a 
                credit reporting agency is required to match to 
                ensure that a consumer is the correct 
                individual to whom a consumer report relates 
                before releasing a consumer report to a user, 
                including--
                            (i) the extent to which requiring 
                        additional points of such identifying 
                        information to match would--
                                    (I) enhance the accuracy of 
                                credit reports; and
                                    (II) combat the provision 
                                of incorrect consumer reports 
                                to users;
                            (ii) the extent to which requiring 
                        an exact match of the first and last 
                        name, social security number, and 
                        address and ZIP Code of the consumer 
                        would enhance the likelihood of 
                        increasing credit report accuracy; and
                            (iii) the effects of allowing 
                        consumer reporting agencies to use 
                        partial matches of social security 
                        numbers and name recognition software 
                        on the accuracy of credit reports;
                    (B) requiring notification to consumers 
                when negative information has been added to 
                their credit reports, including--
                            (i) the potential impact of such 
                        notification on the ability of 
                        consumers to identify errors on their 
                        credit reports; and
                            (ii) the potential impact of such 
                        notification on the ability of 
                        consumers to remove fraudulent 
                        information from their credit reports;
                    (C) the effects of requiring that a 
                consumer who has experienced an adverse action 
                based on a credit report receives a copy of the 
                same credit report that the creditor relied on 
                in taking the adverse action, including--
                            (i) the extent to which providing 
                        such reports to consumers would 
                        increase theability of consumers to 
                        identify errors in their credit reports; and
                            (ii) the extent to which providing 
                        such reports to consumers would 
                        increase the ability of consumers to 
                        remove fraudulent information from 
                        their credit reports;
                    (D) any common financial transactions that 
                are not generally reported to the consumer 
                reporting agencies, but would provide useful 
                information in determining the credit 
                worthiness of consumers; and
                    (E) any actions that might be taken within 
                a voluntary reporting system to encourage the 
                reporting of the types of transactions 
                described in subparagraph (D).
            (3) Costs and benefits.--With respect to each area 
        of study described in paragraph (2), the Commission 
        shall consider the extent to which such requirements 
        would benefit consumers, balanced against the cost of 
        implementing such provisions.
    (b) Report Required.--Not later than 1 year after the date 
of enactment of this Act, the chairman of the Commission shall 
submit a report to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial Services 
of the House of Representatives containing a detailed summary 
of the findings and conclusions of the study under this 
section, together with such recommendations for legislative or 
administrative actions as may be appropriate.

SEC. 319. FTC STUDY OF THE ACCURACY OF CONSUMER REPORTS.

    (a) Study Required.--Until the final report is submitted 
under subsection (b)(2), the Commission shall conduct an 
ongoing study of the accuracy and completeness of information 
contained in consumer reports prepared or maintained by 
consumer reporting agencies and methods for improving the 
accuracy and completeness of such information.
    (b) Biennial Reports Required.--
            (1) Interim reports.--The Commission shall submit 
        an interim report to the Congress on the study 
        conducted under subsection (a) at the end of the 1-year 
        period beginning on the date of enactment of this Act 
        and biennially thereafter for 8 years.
            (2) Final report.--The Commission shall submit a 
        final report to the Congress on the study conducted 
        under subsection (a) at the end of the 2-year period 
        beginning on the date on which the final interim report 
        is submitted to the Congress under paragraph (1).
            (3) Contents.--Each report submitted under this 
        subsection shall contain a detailed summary of the 
        findings and conclusions of the Commission with respect 
        to the study required under subsection (a) and such 
        recommendations for legislative and administrative 
        action as the Commission may determine to be 
        appropriate.

 TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE 
                            FINANCIAL SYSTEM

SEC. 411. PROTECTION OF MEDICAL INFORMATION IN THE FINANCIAL SYSTEM.

    (a) In General.--Section 604(g) of the Fair Credit 
Reporting Act (15 U.S.C. 1681b(g)) is amended to read as 
follows:
    ``(g) Protection of Medical Information.--
            ``(1) Limitation on consumer reporting agencies.--A 
        consumer reporting agency shall not furnish for 
        employment purposes, or in connection with a credit or 
        insurance transaction, a consumer report that contains 
        medical information about a consumer, unless--
                    ``(A) if furnished in connection with an 
                insurance transaction, the consumer 
                affirmatively consents to the furnishing of the 
                report;
                    ``(B) if furnished for employment purposes 
                or in connection with a credit transaction--
                            ``(i) the information to be 
                        furnished is relevant to process or 
                        effect the employment or credit 
                        transaction; and
                            ``(ii) the consumer provides 
                        specific written consent for the 
                        furnishing of the report that describes 
                        in clear and conspicuous language the 
                        use for which the information will be 
                        furnished; or
                    ``(C) the information to be furnished 
                pertains solely to transactions, accounts, or 
                balances relating to debts arising from the 
                receipt of medical services, products, or 
                devises, where such information, other than 
                account status or amounts, is restricted or 
                reported using codes that do not identify, or 
                do not provide information sufficient to infer, 
                the specific provider or the nature of such 
                services, products, or devices, as provided in 
                section 605(a)(6).
            ``(2) Limitation on creditors.--Except as permitted 
        pursuant to paragraph (3)(C) or regulations prescribed 
        under paragraph (5)(A), a creditor shall not obtain or 
        use medical information pertaining to a consumer in 
        connection with any determination of the consumer's 
        eligibility, or continued eligibility, for credit.
            ``(3) Actions authorized by federal law, insurance 
        activities and regulatory determinations.--Section 
        603(d)(3) shall not be construed so as to treat 
        information or any communication of information as a 
        consumer report if the information or communication is 
        disclosed--
                    ``(A) in connection with the business of 
                insurance or annuities, including the 
                activities described in section 18B of the 
                model Privacy of Consumer Financial and Health 
                Information Regulation issued by the National 
                Association of Insurance Commissioners (as in 
                effect on January 1, 2003);
                    ``(B) for any purpose permitted without 
                authorization under the Standards for 
                Individually Identifiable Health Information 
                promulgated by the Department of Health and 
                Human Services pursuant to the Health Insurance 
                Portability and Accountability Act of 1996, or 
                referred to under section 1179 of such Act, 
                or described in section 502(e) of Public Law 106-102; 
                or
                    ``(C) as otherwise determined to be 
                necessary and appropriate, by regulation or 
                order and subject to paragraph (6), by the 
                Commission, any Federal banking agency or the 
                National Credit Union Administration (with 
                respect to any financial institution subject to 
                the jurisdiction of such agency or 
                Administration under paragraph (1), (2), or (3) 
                of section 621(b), or the applicable State 
                insurance authority (with respect to any person 
                engaged in providing insurance or annuities).
            ``(4) Limitation on redisclosure of medical 
        information.--Any person that receives medical 
        information pursuant to paragraph (1) or (3) shall not 
        disclose such information to any other person, except 
        as necessary to carry out the purpose for which the 
        information was initially disclosed, or as otherwise 
        permitted by statute, regulation, or order.
            ``(5) Regulations and effective date for paragraph 
        (2).--
                    ``(A) Regulations required.--Each Federal 
                banking agency and the National Credit Union 
                Administration shall, subject to paragraph (6) 
                and after notice and opportunity for comment, 
                prescribe regulations that permit transactions 
                under paragraph (2) that are determined to be 
                necessary and appropriate to protect legitimate 
                operational, transactional, risk, consumer, and 
                other needs (and which shall include permitting 
                actions necessary for administrative 
                verification purposes), consistent with the 
                intent of paragraph (2) to restrict the use of 
                medical information for inappropriate purposes.
                    ``(B) Final regulations required.--The 
                Federal banking agencies and the National 
                Credit Union Administration shall issue the 
                regulations required under subparagraph (A) in 
                final form before the end of the 6-month period 
                beginning on the date of enactment of the Fair 
                and Accurate Credit Transactions Act of 2003.
            ``(6) Coordination with other laws.--No provision 
        of this subsection shall be construed as altering, 
        affecting, or superseding the applicability of any 
        other provision of Federal law relating to medical 
        confidentiality.''.
    (b) Restriction on Sharing of Medical Information.--Section 
603(d) of the Fair Credit Reporting Act (15 U.S.C. 1681a(d)) is 
amended--
            (1) in paragraph (2), by striking ``The term'' and 
        inserting ``Except as provided in paragraph (3), the 
        term''; and
            (2) by adding at the end the following new 
        paragraph:
            ``(3) Restriction on sharing of medical 
        information.--Except for information or any 
        communication of information disclosed as provided in 
        section 604(g)(3), the exclusions in paragraph (2) 
        shall not apply with respect to information disclosed 
        to any person related by common ownership or affiliated 
        by corporate control, if the information is--
                    ``(A) medical information;
                    ``(B) an individualized list or description 
                based on the payment transactions of the 
                consumer for medical products or services; or
                    ``(C) an aggregate list of identified 
                consumers based on payment transactions for 
                medical products or services.
    (c) Definition.--Section 603(i) of the Fair Credit 
Reporting Act (15 U.S.C. 1681a(i)) is amended to read as 
follows:
    ``(i) Medical Information.--The term `medical 
information'--
            ``(1) means information or data, whether oral or 
        recorded, in any form or medium, created by or derived 
        from a health care provider or the consumer, that 
        relates to--
                    ``(A) the past, present, or future 
                physical, mental, or behavioral health or 
                condition of an individual;
                    ``(B) the provision of health care to an 
                individual; or
                    ``(C) the payment for the provision of 
                health care to an individual.
            ``(2) does not include the age or gender of a 
        consumer, demographic information about the consumer, 
        including a consumer's residence address or e-mail 
        address, or any other information about a consumer that 
        does not relate to the physical, mental, or behavioral 
        health or condition of a consumer, including the 
        existence or value of any insurance policy.''.
    (d) Effective Dates.--This section shall take effect at the 
end of the 180-day period beginning on the date of enactment of 
this Act, except that paragraph (2) of section 604(g) of the 
Fair Credit Reporting Act (as amended by subsection (a) of this 
section) shall take effect on the later of--
            (1) the end of the 90-day period beginning on the 
        date on which the regulations required under paragraph 
        (5)(B) of such section 604(g) are issued in final form; 
        or
            (2) the date specified in the regulations referred 
        to in paragraph (1).

SEC. 412. CONFIDENTIALITY OF MEDICAL CONTACT INFORMATION IN CONSUMER 
                    REPORTS.

    (a) Duties of Medical Information Furnishers.--Section 
623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)), 
as amended by this Act, is amended by adding at the end the 
following:
            ``(9) Duty to provide notice of status as medical 
        information furnisher.--A person whose primary business 
        is providing medical services, products, or devices, or 
        the person's agent or assignee, who furnishes 
        information to a consumer reporting agency on a 
        consumer shall be considered a medical information 
        furnisher for purposes of this title, and shall notify 
        the agency of such status.''.
    (b) Restriction of Dissemination of Medical Contact 
Information.--Section 605(a) of the FairCredit Reporting Act 
(15 U.S.C. 1681c(a)) is amended by adding at the end the following:
            ``(6) The name, address, and telephone number of 
        any medical information furnisher that has notified the 
        agency of its status, unless--
                    ``(A) such name, address, and telephone 
                number are restricted or reported using codes 
                that do not identify, or provide information 
                sufficient to infer, the specific provider or 
                the nature of such services, products, or 
                devices to a person other than the consumer; or
                    ``(B) the report is being provided to an 
                insurance company for a purpose relating to 
                engaging in the business of insurance other 
                than property and casualty insurance.''.
    (c) No Exceptions Allowed for Dollar Amounts.--Section 
605(b) of the Fair Credit Reporting Act (15 U.S.C. 1681c(b)) is 
amended by striking ``The provisions of subsection (a)'' and 
inserting ``The provisions of paragraphs (1) through (5) of 
subsection (a)''.
    (d) Coordination With Other Laws.--No provision of any 
amendment made by this section shall be construed as altering, 
affecting, or superseding the applicability of any other 
provision of Federal law relating to medical confidentiality.
    (e) FTC Regulation of Coding of Trade Names.--Section 621 
of the Fair Credit Reporting Act (15 U.S.C. 1681s), as amended 
by this Act, is amended by adding at the end the following:
    ``(g) FTC Regulation of Coding of Trade Names.--If the 
Commission determines that a person described in paragraph (9) 
of section 623(a) has not met the requirements of such 
paragraph, the Commission shall take action to ensure the 
person's compliance with such paragraph, which may include 
issuing model guidance or prescribing reasonable policies and 
procedures, as necessary to ensure that such person complies 
with such paragraph.''.
    (f) Technical and Conforming Amendments.--Section 604(g) of 
the Fair Credit Reporting Act (15 U.S.C. 1681b(g)), as amended 
by section 411 of this Act, is amended--
            (1) in paragraph (1), by inserting ``(other than 
        medical contact information treated in the manner 
        required under section 605(a)(6))'' after ``a consumer 
        report that contains medical information''; and
            (2) in paragraph (2), by inserting ``(other than 
        medical information treated in the manner required 
        under section 605(a)(6))'' after ``a creditor shall not 
        obtain or use medical information''.
    (g) Effective Date.--The amendments made by this section 
shall take effect at the end of the 15-month period beginning 
on the date of enactment of this Act.

         TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT

SEC. 511. SHORT TITLE.

    This title may be cited as the ``Financial Literacy and 
Education Improvement Act''.

SEC. 512. DEFINITIONS.

    As used in this title--
            (1) the term ``Chairperson'' means the Chairperson 
        of the Financial Literacy and Education Commission; and
            (2) the term ``Commission'' means the Financial 
        Literacy and Education Commission established under 
        section 513.

SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION COMMISSION.

    (a) In General.--There is established a commission to be 
known as the ``Financial Literacy and Education Commission''.
    (b) Purpose.--The Commission shall serve to improve the 
financial literacy and education of persons in the United 
States through development of a national strategy to promote 
financial literacy and education.
    (c) Membership.--
            (1) Composition.--The Commission shall be composed 
        of--
                    (A) the Secretary of the Treasury;
                    (B) the respective head of each of the 
                Federal banking agencies (as defined in section 
                3 of the Federal Deposit Insurance Act), the 
                National Credit Union Administration, the 
                Securities and Exchange Commission, each of the 
                Departments of Education, Agriculture, Defense, 
                Health and Human Services, Housing and Urban 
                Development, Labor, and Veterans Affairs, the 
                Federal Trade Commission, the General Services 
                Administration, the Small Business 
                Administration, the Social Security 
                Administration, the Commodity Futures Trading 
                Commission, and the Office of Personnel 
                Management; and
                    (C) at the discretion of the President, not 
                more than 5 individuals appointed by the 
                President from among the administrative heads 
                of any other Federal agencies, departments, or 
                other Federal Government entities, whom the 
                President determines to be engaged in a serious 
                effort to improve financial literacy and 
                education.
            (2) Alternates.--Each member of the Commission may 
        designate an alternate if the member is unable to 
        attend a meeting of the Commission. Such alternate 
        shall be an individual who exercises significant 
        decisionmaking authority.
    (d) Chairperson.--The Secretary of the Treasury shall serve 
as the Chairperson.
    (e) Meetings.--The Commission shall hold, at the call of 
the Chairperson, at least 1 meeting every 4 months. All such 
meetings shall be open to the public. The Commission may hold, 
at the call of the Chairperson, such other meetings as the 
Chairperson sees fit to carry out this title.
    (f) Quorum.--A majority of the members of the Commission 
shall constitute a quorum, but a lesser number of members may 
hold hearings.
    (g) Initial Meeting.--The Commission shall hold its first 
meeting not later than 60 days after the date of enactment of 
this Act.

SEC. 514. DUTIES OF THE COMMISSION.

    (a) Duties.--
            (1) In general.--The Commission, through the 
        authority of the members referred to in section 513(c), 
        shall take such actions as it deems necessary to 
        streamline, improve, or augment the financial literacy 
        and education programs, grants, and materials of the 
        Federal Government, including curricula for all 
        Americans.
            (2) Areas of emphasis.--To improve financial 
        literacy and education, the Commission shall emphasize, 
        among other elements, basic personal income and 
        household money management and planning skills, 
        including how to--
                    (A) create household budgets, initiate 
                savings plans, and make strategic investment 
                decisions for education, retirement, home 
                ownership, wealth building, or other savings 
                goals;
                    (B) manage spending, credit, and debt, 
                including credit card debt, effectively;
                    (C) increase awareness of the availability 
                and significance of credit reports and credit 
                scores in obtaining credit, the importance of 
                their accuracy (and how to correct 
                inaccuracies), their effect on credit terms, 
                and the effect common financial decisions may 
                have on credit scores;
                    (D) ascertain fair and favorable credit 
                terms;
                    (E) avoid abusive, predatory, or deceptive 
                credit offers and financial products;
                    (F) understand, evaluate, and compare 
                financial products, services, and 
                opportunities;
                    (G) understand resources that ought to be 
                easily accessible and affordable, and that 
                inform and educate investors as to their rights 
                and avenues of recourse when an investor 
                believes his or her rights have been violated 
                by unprofessional conduct of market 
                intermediaries;
                    (H) increase awareness of the particular 
                financial needs and financial transactions 
                (such as the sending of remittances) of 
                consumers who are targeted in multilingual 
                financial literacy and education programs and 
                improve the development and distribution of 
                multilingual financial literacy and education 
                materials;
                    (I) promote bringing individuals who lack 
                basic banking services into the financial 
                mainstream by opening and maintaining an 
                account with a financial institution; and
                    (J) improve financial literacy and 
                education through all other related skills, 
                including personal finance and related economic 
                education, with the primary goal of programs 
                not simply to improve knowledge, but rather to 
                improve consumers' financial choices and 
                outcomes.
    (b) Website.--
            (1) In general.--The Commission shall establish and 
        maintain a website, such as the domain name 
        ``FinancialLiteracy.gov'', or a similar domain name.
            (2) Purposes.--The website established under 
        paragraph (1) shall--
                    (A) serve as a clearinghouse of information 
                about Federal financial literacy and education 
                programs;
                    (B) provide a coordinated entry point for 
                accessing information about all Federal 
                publications, grants, and materials promoting 
                enhanced financial literacy and education;
                    (C) offer information on all Federal grants 
                to promote financial literacy and education, 
                and on how to target, apply for, and receive a 
                grant that is most appropriate under the 
                circumstances;
                    (D) as the Commission considers 
                appropriate, feature website links to efforts 
                that have no commercial content and that 
                feature information about financial literacy 
                and education programs, materials, or 
                campaigns; and
                    (E) offer such other information as the 
                Commission finds appropriate to share with the 
                public in the fulfillment of its purpose.
    (c) Toll-Free Hotline.--The Commission shall establish a 
toll-free telephone number that shall be made available to 
members of the public seeking information about issues 
pertaining to financial literacy and education.
    (d) Development and Dissemination of Materials.--The 
Commission shall--
            (1) develop materials to promote financial literacy 
        and education; and
            (2) disseminate such materials to the general 
        public.
    (e) Coordination of Efforts.--The Commission shall take 
such steps as are necessary to coordinate and promote financial 
literacy and education efforts at the State and local level, 
including promoting partnerships among Federal, State, and 
local governments, nonprofit organizations, and private 
enterprises.
    (f) National Strategy.--
            (1) In general.--The Commission shall--
                    (A) not later than 18 months after the date 
                of enactment of this Act, develop a national 
                strategy to promote basic financial literacy 
                and education among all American consumers; and
                    (B) coordinate Federal efforts to implement 
                the strategy developed under subparagraph (A).
            (2) Strategy.--The strategy to promote basic 
        financial literacy and education required to be 
        developed under paragraph (1) shall provide for--
                    (A) participation by State and local 
                governments and private, nonprofit, and public 
                institutions in the creation and implementation 
                of such strategy;
                    (B) the development of methods--
                            (i) to increase the general 
                        financial education level of current 
                        and future consumers of financial 
                        services and products; and
                            (ii) to enhance the general 
                        understanding of financial services and 
                        products;
                    (C) review of Federal activities designed 
                to promote financial literacy and education, 
                and development of a plan to improve 
                coordination of such activities; and
                    (D) the identification of areas of overlap 
                and duplication among Federal financial 
                literacy and education activities and proposed 
                means of eliminating any such overlap and 
                duplication.
            (3) National strategy review.--The Commission 
        shall, not less than annually, review the national 
        strategy developed under this subsection and make such 
        changes and recommendations as it deems necessary.
    (g) Consultation.--The Commission shall actively consult 
with a variety of representatives from private and nonprofit 
organizations and State and local agencies, as determined 
appropriate by the Commission.
    (h) Reports.--
            (1) In general.--Not later than 18 months after the 
        date of the first meeting of the Commission, and 
        annually thereafter, the Commission shall issue a 
        report, the Strategy for Assuring Financial Empowerment 
        (``SAFE Strategy''), to the Committee on Banking, 
        Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives on the progress of the Commission in 
        carrying out this title.
            (2) Contents.--The report required under paragraph 
        (1) shall include--
                    (A) the national strategy for financial 
                literacy and education, as described under 
                subsection (f);
                    (B) information concerning the 
                implementation of the duties of the Commission 
                under subsections (a) through (g);
                    (C) an assessment of the success of the 
                Commission in implementing the national 
                strategy developed under subsection (f);
                    (D) an assessment of the availability, 
                utilization, and impact of Federal financial 
                literacy and education materials;
                    (E) information concerning the content and 
                public use of--
                            (i) the website established under 
                        subsection (b); and
                            (ii) the toll-free telephone number 
                        established under subsection (c);
                    (F) a brief survey of the financial 
                literacy and education materials developed 
                under subsection (d), and data regarding the 
                dissemination and impact of such materials, as 
                measured by improved financial decisionmaking;
                    (G) a brief summary of any hearings 
                conducted by the Commission, including a list 
                of witnesses who testified at such hearings;
                    (H) information about the activities of the 
                Commission planned for the next fiscal year;
                    (I) a summary of all Federal financial 
                literacy and education activities targeted to 
                communities that have historically lacked 
                access to financial literacy materials and 
                education, and have been underserved by the 
                mainstream financial systems; and
                    (J) such other materials relating to the 
                duties of the Commission as the Commission 
                deems appropriate.
            (3) Initial report.--The initial report under 
        paragraph (1) shall include information regarding all 
        Federal programs, materials, and grants which seek to 
        improve financial literacy, and assess the 
        effectiveness of such programs.
    (i) Testimony.--The Commission shall annually provide 
testimony by the Chairperson to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives.

SEC. 515. POWERS OF THE COMMISSION.

    (a) Hearings.--
            (1) In general.--The Commission shall hold such 
        hearings, sit and act at such times and places, take 
        such testimony, and receive such evidence as the 
        Commission deems appropriate to carry out this title.
            (2) Participation.--In hearings held under this 
        subsection, the Commission shall consider inviting 
        witnesses from, among other groups--
                    (A) other Federal Government officials;
                    (B) State and local government officials;
                    (C) consumer and community groups;
                    (D) nonprofit financial literacy and 
                education groups (such as those involved in 
                personal finance and economic education); and
                    (E) the financial services industry.
    (b) Information From Federal Agencies.--The Commission may 
secure directly from any Federal department or agency such 
information as the Commission considers necessary to carry out 
this title. Upon request of the Chairperson, the head of such 
department or agency shall furnish such information to the 
Commission.
    (c) Periodic Studies.--The Commission may conduct periodic 
studies regarding the state of financial literacy and education 
in the United States, as the Commission determines appropriate.
    (d) Multilingual.--The Commission may take any action to 
develop and promote financial literacy and education materials 
in languages other than English, as the Commission deems 
appropriate, including for the website established under 
section 514(b), at the toll-free number established under 
section 514(c), and in the materials developed and disseminated 
under section 514(d).

SEC. 516. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Commission 
shall serve without compensation in addition to that received 
for their service as an officer or employee of the United 
States.
    (b) Travel Expenses.--The members of the Commission shall 
be allowed travel expenses, including per diem in lieu of 
subsistence, at rates authorized for employees of agencies 
under subchapter I of chapter 57 of title 5, United States 
Code, while away from their homes orregular places of business 
in the performance of services for the Commission.
    (c) Assistance.--
            (1) In general.--The Director of the Office of 
        Financial Education of the Department of the Treasury 
        shall provide assistance to the Commission, upon 
        request of the Commission, without reimbursement.
            (2) Detail of government employees.--Any Federal 
        Government employee may be detailed to the Commission 
        without reimbursement, and such detail shall be without 
        interruption or loss of civil service status or 
        privilege.

SEC. 517. STUDIES BY THE COMPTROLLER GENERAL.

    (a) Effectiveness Study.--Not later than 3 years after the 
date of enactment of this Act, the Comptroller General of the 
United States shall submit a report to Congress assessing the 
effectiveness of the Commission in promoting financial literacy 
and education.
    (b) Study and Report on the Need and Means for Improving 
Financial Literacy Among Consumers.--
            (1) Study required.--The Comptroller General of the 
        United States shall conduct a study to assess the 
        extent of consumers' knowledge and awareness of credit 
        reports, credit scores, and the dispute resolution 
        process, and on methods for improving financial 
        literacy among consumers.
            (2) Factors to be included.--The study required 
        under paragraph (1) shall include the following issues:
                    (A) The number of consumers who view their 
                credit reports.
                    (B) Under what conditions and for what 
                purposes do consumers primarily obtain a copy 
                of their consumer report (such as for the 
                purpose of ensuring the completeness and 
                accuracy of the contents, to protect against 
                fraud, in response to an adverse action based 
                on the report, or in response to suspected 
                identity theft) and approximately what 
                percentage of the total number of consumers who 
                obtain a copy of their consumer report do so 
                for each such primary purpose.
                    (C) The extent of consumers' knowledge of 
                the data collection process.
                    (D) The extent to which consumers know how 
                to get a copy of a consumer report.
                    (E) The extent to which consumers know and 
                understand the factors that positively or 
                negatively impact credit scores.
            (3) Report required.--Before the end of the 12-
        month period beginning on the date of enactment of this 
        Act, the Comptroller General shall submit a report to 
        Congress on the findings and conclusions of the 
        Comptroller General pursuant to the study conducted 
        under this subsection, together with such 
        recommendations for legislative or administrative 
        action as the Comptroller General may determine to be 
        appropriate, including recommendations on methods for 
        improving financial literacy among consumers.

SEC. 518. THE NATIONAL PUBLIC SERVICE MULTIMEDIA CAMPAIGN TO ENHANCE 
                    THE STATE OF FINANCIAL LITERACY.

    (a) In General.--The Secretary of the Treasury (in this 
section referred to as the ``Secretary''), after review of the 
recommendations of the Commission, as part of the national 
strategy, shall develop, implement, and conduct a pilot 
national public service multimedia campaign to enhance the 
state of financial literacy and education in the United States.
    (b) Program Requirements.--
            (1) Public service campaign.--The Secretary, after 
        review of the recommendations of the Commission, shall 
        select and work with a nonprofit organization or 
        organizations that are especially well-qualified in the 
        distribution of public service campaigns, and have 
        secured private sector funds to produce the pilot 
        national public service multimedia campaign.
            (2) Development of multimedia campaign.--The 
        Secretary, after review of the recommendations of the 
        Commission, shall develop, in consultation with 
        nonprofit, public, or private organizations, especially 
        those that are well qualified by virtue of their 
        experience in the field of financial literacy and 
        education, to develop the financial literacy national 
        public service multimedia campaign.
            (3) Focus of campaign.--The pilot national public 
        service multimedia campaign shall be consistent with 
        the national strategy, and shall promote the toll-free 
        telephone number and the website developed under this 
        title.
    (c) Multilingual.--The Secretary may develop the multimedia 
campaign in languages other than English, as the Secretary 
deems appropriate.
    (d) Performance Measures.--The Secretary shall develop 
measures to evaluate the effectiveness of the pilot national 
public service multimedia campaign, as measured by improved 
financial decision making among individuals.
    (e) Report.--For each fiscal year for which there are 
appropriations pursuant to the authorization in subsection (e), 
the Secretary shall submit a report to the Committee on 
Banking, Housing, and Urban Affairs and the Committee on 
Appropriations of the Senate and the Committee on Financial 
Services and the Committee on Appropriations of the House of 
Representatives, describing the status and implementation of 
the provisions of this section and the state of financial 
literacy and education in the United States.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary, not to exceed $3,000,000 
for fiscal years 2004, 2005, and 2006, for the development, 
production, and distribution of a pilot national public service 
multimedia campaign under this section.

SEC. 519. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission 
such sums as may be necessary to carry out this title, 
including administrative expenses of the Commission.

        TITLE VI--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS

SEC. 611. 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), as amended by this Act, is amended by 
adding at the end the following:
    ``(x) 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 (x)'' after 
``subsection (o)''.

                   TITLE VII--RELATION TO STATE LAWS

SEC. 711. RELATION TO STATE LAWS.

    Section 625 of the Fair Credit Reporting Act (15 U.S.C. 
1681t), as so designated by section 214 of this Act, is 
amended--
            (1) in subsection (a), by inserting ``or for the 
        prevention or mitigation of identity theft,'' after 
        ``information on consumers,'';
            (2) in subsection (b), by adding at the end the 
        following:
            ``(5) with respect to the conduct required by the 
        specific provisions of--
                    ``(A) section 605(g);
                    ``(B) section 605A;
                    ``(C) section 605B;
                    ``(D) section 609(a)(1)(A);
                    ``(E) section 612(a);
                    ``(F) subsections (e), (f), and (g) of 
                section 615;
                    ``(G) section 621(f);
                    ``(H) section 623(a)(6); or
                    ``(I) section 628.''; and
            (3) in subsection (d)--
                    (A) by striking paragraph (2);
                    (B) by striking ``(c)--'' and all that 
                follows through ``do not affect'' and inserting 
                ``(c) do not affect''; and
                    (C) by striking ``1996; and'' and inserting 
                ``1996.''.

                       TITLE VIII--MISCELLANEOUS

SEC. 811. CLERICAL AMENDMENTS.

    (a) Short Title.--Section 601 of the Fair Credit Reporting 
Act (15 U.S.C. 1601 note) is amended by striking ``the Fair 
Credit Reporting Act.'' and inserting ``the `Fair Credit 
Reporting Act'.''.
    (b) Section 604.--Section 604(a) of the Fair Credit 
Reporting Act (15 U.S.C. 1681b(a)) is amended in paragraphs (1) 
through (5), other than subparagraphs (E) and (F) of paragraph 
(3), by moving each margin 2 ems to the right.
    (c) Section 605.--
            (1) Section 605(a)(1) of the Fair Credit Reporting 
        Act (15 U.S.C. 1681c(a)(1)) is amended by striking 
        ``(1) cases'' and inserting ``(1) Cases''.
            (2)(A) Section 5(1) of Public Law 105-347 (112 
        Stat. 3211) is amended by striking ``Judgments which'' 
        and inserting ``judgments which''.
            (B) The amendment made by subparagraph (A) shall be 
        deemed to have the same effective date as section 5(1) 
        of Public Law 105-347 (112 Stat. 3211).
    (d) Section 609.--Section 609(a) of the Fair Credit 
Reporting Act (15 U.S.C. 1681g(a)) is amended--
            (1) in paragraph (2), by moving the margin 2 ems to 
        the right; and
            (2) in paragraph (3)(C), by moving the margins 2 
        ems to the left.
    (e) Section 617.--Section 617(a)(1) of the Fair Credit 
Reporting Act (15 U.S.C. 1681o(a)(1)) is amended by adding 
``and'' at the end.
    (f) Section 621.--Section 621(b)(1)(B) of the Fair Credit 
Reporting Act (15 U.S.C. 1681s(b)(1)(B)) is amended by striking 
``25(a)'' and inserting ``25A''.
    (g) Title 31.--Section 5318 of title 31, United States 
Code, is amended by redesignating the second item designated as 
subsection (l) (relating to applicability of rules) as 
subsection (m).
    (h) Conforming Amendment.--Section 2411(c) of Public Law 
104-208 (110 Stat. 3009-445) is repealed.
      And the Senate agree to the same.

                For consideration of the House bill and the 
                Senate amendment, and modifications committed 
                to conference:
                                   Michael G. Oxley,
                                   Doug Bereuter,
                                   Spencer Bachus,
                                   Mike Castle,
                                   Ed Royce,
                                   Robert W. Ney,
                                   Sue Kelly,
                                   Paul Gillmor,
                                   Steven C. LaTourette,
                                   Judy Biggert,
                                   Pete Sessions,
                                   Barney Frank,
                                   Paul E. Kanjorski,
                                   Melvin L. Watt,
                                   Luis V. Gutierrez,
                                   Darlene Hooley,
                                   Dennis Moore,
                                 Managers on the Part of the House.

                                   Richard Shelby,
                                   Robert F. Bennett,
                                   Wayne Allard,
                                   Michael B. Enzi,
                                   Paul Sarbanes,
                                   Christopher J. Dodd,
                                   Tim Johnson,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the House to the bill (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, submit 
the following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report:
      The Senate amendment to the text of the bill struck all 
of the House bill after the enacting clause and inserted a 
substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment that is a substitute for the 
House bill and the Senate amendment. The Committee of 
Conference met on November 21, 2003 (the Senate Chairing) and 
resolved their differences. The differences between the House 
bill, the Senate amendment, and the substitute agreed to in 
conference are noted below, except for clerical corrections, 
conforming changes made necessary by agreements reached by the 
conferees, and minor drafting and clerical changes.
      The Fair Credit Reporting Act was enacted in 1970, and 
substantially amended in 1996. The amendments made at that time 
were necessary to make the law relevant in an information age. 
Included in the 1996 amendment were a number of provisions that 
explicitly preempt state laws. These preemptions expire on 
January 1, 2004.
      Since 1996, the national credit markets have undergone 
significant change. Most of these changes were the result of 
technological innovations. Technology has expanded the 
availability of credit, and permitted instant credit decisions. 
Mortgage financing that once took weeks now takes hours, and 
home ownership rates are at historic highs. Consumer credit can 
be obtained at the point of sale for major items like 
automobiles. Technology and the prudently-regulated free flow 
of consumer information under the FCRA has made much of this 
possible. We live in a mobile society in which 40 million 
Americans move annually. The FCRA permits consumers to 
transport their credit with them wherever they go. Both 
Committees of jurisdiction have developed detailed records 
regarding the benefits that our national credit reporting 
system has visited upon consumers of financial products.
      Despite the myriad benefits of technology to the American 
consumer, there has been one drawback. Namely, the free flow 
information has enabled the explosive growth of a new crime--
identity theft. Both Committees developed comprehensive hearing 
records regarding the growth of this crime, and the havoc it 
visits upon the lives of its victims. Law enforcement 
professionals are cognizant of the growth of this crime, and 
have worked with the affected industries to combat it. While 
criminal prosecutions and strict fraud detection protocols can 
curtail identity theft, and punish the wrongdoers, not enough 
had been done heretofore to aid the real victims of this 
crime--the consumer whose identity is assumed, and can spend 
months or years trying to rehabilitate their credit and re-
order their affairs.
      The House bill and the Senate amendment contain a number 
of identical provisions. In other instances, the provisions in 
the respective bills addressed the same issue in a slightly 
different manner. Both the House bill and the Senate amendment 
addressed the provisions of the FCRA that preempted state laws, 
and are due to expire on January 1, 2004. Both bills addressed 
identity theft, medical information privacy and promote greater 
consumer access to their credit reports.
      The House bill, H.R. 2622, and the bill that served as 
the core of the Senate amendment (S. 1753) are each the result 
of an extensive deliberative and legislative process with a 
three-fold purpose: to assist the victims of identity theft; 
modernize the FCRA and; enhance the national credit reporting 
system. Readers should refer to the Committee Reports for the 
respective bills for further elaboration. The conference 
agreement contains provisions to accomplish these goals. It is 
the conferees' belief that this legislation will assist the 
victims of identity theft, and ensure the operational 
efficiency of our national credit system by creating a number 
of preemptive national standards.

                For consideration of the House bill and the 
                Senate amendment, and modifications committed 
                to conference:
                                   Michael G. Oxley,
                                   Doug Bereuter,
                                   Spencer Bachus,
                                   Mike Castle,
                                   Ed Royce,
                                   Robert W. Ney,
                                   Sue Kelly,
                                   Paul Gillmor
                                   Steven C. LaTourette,
                                   Judy Biggert,
                                   Pete Sessions,
                                   Barney Frank,
                                   Paul E. Kanjorski,
                                   Melvin L. Watt,
                                   Luis V. Gutierrez,
                                   Darlene Hooley,
                                   Dennis Moore,
                                 Managers on the Part of the House.

                                   Richard Shelby,
                                   Robert F. Bennett,
                                   Wayne Allard,
                                   Michael B. Enzi,
                                   Paul Sarbanes,
                                   Christopher J. Dodd,
                                   Tim Johnson,
                                Managers on the Part of the Senate.

                                
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