Protecting Consumer Access to Credit Act

To amend the Fair Credit Reporting Act to make improvements to the regulation of consumer reporting agencies and protect consumers, and for other purposes. 1. Short title This Act may be cited as the Protecting Consumer Access to Credit Act 2. Cybersecurity supervision and examination of large consumer reporting agencies (a) In general The Fair Credit Reporting Act ( 15 U.S.C. 1681 630. Cybersecurity supervision and examination of large consumer reporting agencies Consumer reporting agencies described under section 603(p) shall be subject to cybersecurity supervision and examination by the Bureau. . (b) Clerical amendment The table of contents of the Fair Credit Reporting Act is amended by adding at the end the following: 630. Cybersecurity supervision and examination of large consumer reporting agencies. . 3. Prohibition on the use of Social Security numbers (a) In general Section 605 of the Fair Credit Reporting Act ( 15 U.S.C. 1681c (i) Prohibition on the use of social security numbers A consumer reporting agency described under section 603(p)— (1) may not make any consumer report containing a social security number; and (2) may not use the social security number of a consumer as a method to verify the consumer. . (b) Conforming amendment Section 609(a)(1) of the Fair Credit Reporting Act ( 15 U.S.C. 1681g(a)(1) except that— (B) nothing except that nothing (c) Effective date The amendments made by this section shall take effect on January 1, 2022. 4. Exclusion of paid medical debt Section 605(a) of the Fair Credit Reporting Act ( 15 U.S.C. 1681c(a) (9) Paid debt arising from the receipt of medically necessary, non-elective medical services, products, or devices which from the date of payment, antedate the report by more than 1 year. . 5. Security freezes for protected consumers (a) Placement of freeze Section 605A(j)(2)(A) of the Fair Credit Reporting Act ( 15 U.S.C. 1681c–1(j)(2)(A) (A) In general Upon receiving a direct request from a protected consumer’s representative, by mail, toll-free telephone, or secure electronic means, that a consumer reporting agency place a security freeze, and upon receiving sufficient proof of identification and sufficient proof of authority, the consumer reporting agency shall, free of charge, place the security freeze not later than 3 business days after receiving the request directly from the protected consumer’s representative. . (b) Removal of freeze Section 605A(j)(4) of the Fair Credit Reporting Act ( 15 U.S.C. 1681c–1(j)(4) (1) in subparagraph (A)(i), by inserting after Upon the direct request , by mail or secure electronic means, (2) in subparagraph (A)(ii), by inserting after Upon the direct request , by mail or secure electronic means, (3) in subparagraph (C)— (A) by striking not later than— not later than 3 days business days after receiving the request directly from the protected consumer or protected consumer’s representative. (B) by striking clauses (i) and (ii). 6. Public record data sources in consumer reports Section 605(d) of the Fair Credit Reporting Act ( 15 U.S.C. 1681c(d) (3) Public record data If a consumer reporting agency furnishes a consumer report that contains public record data, such consumer reporting agency shall include the source of such public record data in such report. . 7. Prohibition on including adverse information related to predatory mortgage lending (a) In general The Fair Credit Reporting Act ( 15 U.S.C. 1681 605C. Adverse information relating to predatory mortgage lending (a) In general A consumer reporting agency may not furnish any consumer report containing any adverse item of information relating to a covered residential mortgage loan (including the origination and servicing of such a loan, any loss mitigation activities related to such a loan, and any foreclosure, deed in lieu of foreclosure, or short sale related to such a loan), if the action or inaction to which the item of information relates— (1) resulted from an unfair, deceptive, or abusive act or practice, or a fraudulent, discriminatory, or illegal activity of a financial institution, as determined by a court of competent jurisdiction; or (2) is related to an unfair, deceptive, or abusive act or practice, or a fraudulent, discriminatory, or illegal activity of a financial institution that is the subject of a settlement agreement initiated on behalf of a consumer and that is between the financial institution and an agency or department of a local, State, or Federal Government. (b) Covered residential mortgage In this section, the term covered residential mortgage loan (1) a manufactured home (as defined in section 603 of the Housing and Community Development Act of 1974); (2) any installment sales contract, land contract, or contract for deed on a residential property; or (3) a reverse mortgage transaction (as defined in section 103(cc) of the Truth in Lending Act). . (b) Table of contents amendment The table of contents of the Fair Credit Reporting Act is amended by inserting after the item relating to section 605B the following new item: 605C. Adverse information relating to predatory mortgage lending. . 8. Prohibition on including adverse information when financial abuse has been determined (a) In general The Fair Credit Reporting Act ( 15 U.S.C. 1681 605D. Adverse information in cases of financial abuse A consumer reporting agency may not furnish a consumer report containing any adverse item of information about a consumer that resulted from intentionally abusive or harmful financial behavior if— (1) a court of competent jurisdiction, in a lawsuit that is not a class action lawsuit, has determined that the consumer is a victim of such intentionally abusive or harmful financial behavior; (2) such intentionally abusive or harmful financial behavior was conducted by a spouse, family or household member, caregiver, or person with whom such consumer had a dating relationship; and (3) such consumer did not participate in or consent to such behavior. . (b) Table of contents amendment The table of contents of the Fair Credit Reporting Act is amended by inserting after the item relating to section 605C the following new item: 605D. Adverse information in cases of financial abuse. . 9. Prohibition on including adverse information when a student obligor is defrauded (a) In general The Fair Credit Reporting Act ( 15 U.S.C. 1681 605E. Adverse information in cases of a defrauded student obligor. (a) In general A consumer reporting agency may not furnish a consumer report containing any adverse item of information about a consumer that resulted from a private student loan obligation if— (1) such consumer is a student obligor with respect to such private education loan; and (2) a court of competent jurisdiction, in a lawsuit that is not a class action lawsuit, has determined that such consumer is a victim of fraud with respect to such private education loan. (b) Private education loan defined For the purposes of this section, the term private education loan . (b) Table of contents amendment The table of contents of the Fair Credit Reporting Act is amended by inserting after the item relating to section 605D the following new item: 605E. Adverse information in cases of a defrauded student obligor. . 10. Bureau list of credit reporting agencies The Bureau of Consumer Financial Protection shall maintain a list of credit reporting agencies in the United States and publish such list of the website on the Bureau of Consumer Financial Protection. 11. Study and report to Congress on use of non-traditional data in credit scoring (a) Study The Bureau of Consumer Financial Protection shall carry out a study about the use of non-traditional data— (1) by consumer reporting agencies when compiling and furnishing consumer reports; and (2) by persons that create, maintain, or purchase credit scoring models used in making credit decisions. (b) Report Not later than 18 months after the date of the enactment of this section, the Bureau of Consumer Financial Protection shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations, including any recommendations for any legislative or regulatory changes, made in carrying out the study required under subsection (a). (c) Definitions For the purposes of this section, the terms consumer reporting agency consumer report

Summary: Protecting Consumer Access to Credit Act This bill revises requirements related to credit reporting agencies and the reporting of adverse credit information. Credit reporting agencies are prohibited from using social security numbers in credit reports and as a method of verifying a consumer's identity. The Consumer Financial Protection Bureau must supervise and examine the cybersecurity of certain credit reporting agencies. The bill prohibits a credit reporting agency from reporting paid, medically-necessary debt if the debt was paid over a year prior. A credit reporting agency is also prohibited from reporting certain adverse credit information related to financial abuse, unfair or fraudulent mortgage lending, or fraudulent private student lending. The bill extends the time credit reporting agencies have to place a credit security freeze when receiving such a request by phone or through electronic means from one to three business days. It also extends the time agencies have to remove a freeze from one hour to three days.