Overall, the changes are mixed, with some modest improvements to the law, but also some anti-consumer provisions allowing for greater sharing of information. The bill makes dozens of substantive changes to the existing law. The revised law imposes a duty on banks and department stores that provide information to credit bureaus to avoid making errors and to assist in correcting errors. Banks can allow subsidiaries to use credit reports for insurance, credit and employment purposes. States are preempted for eight years from passing stronger new laws in several areas including affiliate sharing, pre-screening and compliance.
States can still pass new laws governing costs of reports for consumers.
Provisions allowing for free credit reports were defeated. Consumers can now obtain a free credit report for a period of 60 days after a use of a credit report results in an adverse decision against them. Indigent persons, victims of identify theft and unemployed people can obtain free reports. The report is intended to examine whether this information is being used for fraudulent purposes and to suggest changes in federal laws to Congress. The bill had been hotly debated throughout the year and was included in the final budget bill at the last moment.