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[108th Congress Public Law 159]
[From the U.S. Government Printing Office]

[DOCID: f:publ159.108]

[[Page 1951]]

            FAIR AND ACCURATE CREDIT TRANSACTIONS ACT OF 2003

[[Page 117 STAT. 1952]]

Public Law 108-159
108th Congress

                                 An Act

 
   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. <<NOTE: Dec. 4, 
                         2003 -  [H.R. 2622]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Fair and Accurate Credit 
Transactions Act of 2003.>> assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This <<NOTE: 15 USC 1601 note.>> 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.

[[Page 117 STAT. 1953]]

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. <<NOTE: 15 USC 1681 note.>> 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. <<NOTE: 15 USC 1681 note.>> EFFECTIVE DATES.

    Except as otherwise specifically provided in this Act and the 
amendments made by this Act--
            (1) <<NOTE: Regulations.>> 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.

[[Page 117 STAT. 1954]]

    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

[[Page 117 STAT. 1955]]

                    ``(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 furnishing such 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. <<NOTE: 15 USC 1681c-1.>> 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

[[Page 117 STAT. 1956]]

        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) <<NOTE: Deadline.>> 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 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;
                    ``(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

[[Page 117 STAT. 1957]]

        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) <<NOTE: Deadline.>> 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).

[[Page 117 STAT. 1958]]

    ``(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 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 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--

[[Page 117 STAT. 1959]]

                          ``(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 <<NOTE: 15 USC 1681c-1 note.>> 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 <<NOTE: Applicability.>> 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

[[Page 117 STAT. 1960]]

                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

[[Page 117 STAT. 1961]]

                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 <<NOTE: Effective date.>> 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 <<NOTE: Deadline.>> the purpose of 
        documenting fraudulent transactions resulting from identity 
        theft, not later than

[[Page 117 STAT. 1962]]

        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--

[[Page 117 STAT. 1963]]

                          ``(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--

[[Page 117 STAT. 1964]]

                    ``(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 <<NOTE: Deadline. Reports.>> 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 <<NOTE: Deadline. 15 USC 1681c-1 note.>> 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. <<NOTE: 15 USC 1681c-2.>> Block of information resulting 
                        from identity theft

    ``(a) Block.--Except <<NOTE: Deadline.>> 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

[[Page 117 STAT. 1965]]

            ``(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.

[[Page 117 STAT. 1966]]

    ``(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. <<NOTE: Procedures.>> 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

[[Page 117 STAT. 1967]]

                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

[[Page 117 STAT. 1968]]

        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 <<NOTE: Deadline.>> 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.--

[[Page 117 STAT. 1969]]

                    ``(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 <<NOTE: Applicability.>> 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 <<NOTE: Regulations.>> 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 <<NOTE: Deadline.>> 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 <<NOTE: Effective 
                      date.>> 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) <<NOTE: Deadline.>> 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 <<NOTE: Deadline.>> consumer reporting 
        agency shall provide a consumer report under paragraph (1) not 
        later than 15 days

[[Page 117 STAT. 1970]]

        after the date on which the request is received under paragraph 
        (1).
            ``(3) Reinvestigations.--
        Notwithstanding <<NOTE: Deadline.>> 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. <<NOTE: 15 USC 1681x.>> Corporate and technological 
                        circumvention prohibited

    ``The <<NOTE: Regulations. Effective date.>> 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.

[[Page 117 STAT. 1971]]

                    ``(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 <<NOTE: Public information.>> 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.''.

[[Page 117 STAT. 1972]]

    (d) Rulemaking <<NOTE: 15 USC 1681j note.>> 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) <<NOTE: Deadline.>> be issued in final form not 
                later than 6 months after the date of enactment of this 
                Act; and
                    (B) <<NOTE: Effective date.>> 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

[[Page 117 STAT. 1973]]

                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

[[Page 117 STAT. 1974]]

                    ``(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 their importance 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--

[[Page 117 STAT. 1975]]

                    ``(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 obligation to 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

[[Page 117 STAT. 1976]]

                      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);

[[Page 117 STAT. 1977]]

                          ``(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:

[[Page 117 STAT. 1978]]

            ``(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 the Fair 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--

[[Page 117 STAT. 1979]]

                    ``(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 <<NOTE: Deadline. 15 USC 1681m note.>> 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 <<NOTE: Internet. 15 USC 1681b note.>> 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 <<NOTE: 15 USC 1601 note.>> 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 <<NOTE: Deadline.>> 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;

[[Page 117 STAT. 1980]]

                          (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. <<NOTE: 15 USC 1681s-3.>> 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

[[Page 117 STAT. 1981]]

                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).

[[Page 117 STAT. 1982]]

    ``(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 <<NOTE: 15 USC 1681s-3 note.>> 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.

[[Page 117 STAT. 1983]]

            (4) Timing.--Regulations required by this subsection shall--
                    (A) <<NOTE: Deadline.>> be issued in final form not 
                later than 9 months after the date of enactment of this 
                Act; and
                    (B) <<NOTE: Effective date.>> 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)) <<NOTE: 15 USC 
        1681a.>> 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 <<NOTE: 15 USC 1681s-3 note.>> 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

[[Page 117 STAT. 1984]]

                                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 <<NOTE: Deadlines.>> 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. <<NOTE: 15 USC 1681 note.>> 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

[[Page 117 STAT. 1985]]

        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 <<NOTE: Deadline.>> 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. <<NOTE: 15 USC 1681w.>> Disposal of records

    ``(a) Regulations.--
            ``(1) In general.--Not <<NOTE: Deadline.>> 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,

[[Page 117 STAT. 1986]]

        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 <<NOTE: Deadline.>> general.--The 
                      notice required under subparagraph (A) shall be 
                      provided to the customer prior to, or no later 
                      than 30 days after, furnishing

[[Page 117 STAT. 1987]]

                      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 provided under 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 <<NOTE: Deadline. Federal 
Register, publication. 15 USC 1681s-2 note.>> 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

[[Page 117 STAT. 1988]]

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)).

[[Page 117 STAT. 1989]]

            ``(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. 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

[[Page 117 STAT. 1990]]

                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 <<NOTE: Regulations.>> 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

[[Page 117 STAT. 1991]]

                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

[[Page 117 STAT. 1992]]

                      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 <<NOTE: Deadline.>> 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;

[[Page 117 STAT. 1993]]

                          ``(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 any of 
                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 <<NOTE: 15 USC 1681n note.>> 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.

[[Page 117 STAT. 1994]]

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) <<NOTE: Records.>> 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) <<NOTE: Records.>> 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 <<NOTE: 15 USC 1681i note.>> 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 <<NOTE: Deadline.>> the end of 
        the 12-month period beginning on the date of enactment of this 
        Act, the

[[Page 117 STAT. 1995]]

        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) <<NOTE: Notification.>> 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

[[Page 117 STAT. 1996]]

                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

[[Page 117 STAT. 1997]]

                    (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 <<NOTE: Deadline.>> 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) <<NOTE: Deadline.>> 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.''.

[[Page 117 STAT. 1998]]

    (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. <<NOTE: 15 USC 1681 note.>> 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 the ability 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

[[Page 117 STAT. 1999]]

                      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 <<NOTE: Deadline.>> 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. <<NOTE: 15 USC 1681 note.>> 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:

[[Page 117 STAT. 2000]]

    ``(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

[[Page 117 STAT. 2001]]

                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 <<NOTE: Deadline.>> 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;

[[Page 117 STAT. 2002]]

                    ``(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 <<NOTE: 15 USC 1681a note.>> 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 Fair Credit 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 <<NOTE: 15 USC 1681b note.>> 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.

[[Page 117 STAT. 2003]]

    (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 <<NOTE: Financial Literacy and Education Improvement 
Act.>> LITERACY AND EDUCATION IMPROVEMENT

SEC. 511. <<NOTE: 20 USC 9701 note.>> SHORT TITLE.

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

SEC. 512. <<NOTE: 20 USC 9701.>> 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. <<NOTE: 20 USC 9702.>> 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,

[[Page 117 STAT. 2004]]

                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) <<NOTE: President.>> 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 <<NOTE: Deadline.>> Commission shall hold 
its first meeting not later than 60 days after the date of enactment of 
this Act.

SEC. 514. <<NOTE: 20 USC 9703.>> 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;

[[Page 117 STAT. 2005]]

                    (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.

[[Page 117 STAT. 2006]]

    (f) National Strategy.--
            (1) In general.--The Commission shall--
                    (A) <<NOTE: Deadline.>> 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 <<NOTE: Deadline.>> 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;

[[Page 117 STAT. 2007]]

                    (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. <<NOTE: 20 USC 9704.>> 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

[[Page 117 STAT. 2008]]

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. <<NOTE: 20 USC 9705.>> 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 or regular 
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. <<NOTE: 20 USC 9706.>> STUDIES BY THE COMPTROLLER GENERAL.

    (a) Effectiveness Study.--Not <<NOTE: Deadline. Reports.>> 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.

[[Page 117 STAT. 2009]]

            (3) Report required.--Before <<NOTE: Deadline.>> 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. <<NOTE: 20 USC 9707.>> 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.

[[Page 117 STAT. 2010]]

SEC. 519. <<NOTE: 20 USC 9708.>> 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

[[Page 117 STAT. 2011]]

        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) <<NOTE: 15 USC 1681c.>> Section 5(1) of Public Law 
        105-347 (112 Stat. 3211) is amended by striking ``Judgments 
        which'' and inserting ``judgments which''.
            (B) <<NOTE: 15 USC 1681c note.>> 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--

[[Page 117 STAT. 2012]]

            (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) <<NOTE: 15 USC 1681m.>> is repealed.

    Approved December 4, 2003.

LEGISLATIVE HISTORY--H.R. 2622 (S. 1753):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 108-263 and Pt.2 (Comm. on Financial Services) and 
108-396 (Comm. of Conference).
SENATE REPORTS: No. 108-166 accompanying S. 1753 (Comm. on Banking, 
Housing, and Urban Affairs).
CONGRESSIONAL RECORD, Vol. 149 (2003):
            Sept. 10, considered and passed House.
            Nov. 5, considered and passed Senate, amended, in lieu of S. 
                1753.
            Nov. 21, House agreed to conference report.
            Nov. 22, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
            Dec. 4, Presidential remarks.

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