Union Calendar No. 271
103D CONGRESS
2D SESSION
H. R. 1015
[Report No. 103–486]
A BILL
To amend the Fair Credit Reporting Act to assure
the completeness and accuracy of consumer in-
formation maintained by credit reporting agen-
cies, to better inform consumers of their rights
under the Act, and to improve enforcement, and
for other purposes.
APRIL 28, 1994
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed
IB
Union Calendar No. 271
103D CONGRESS
2D SESSION
H. R. 1015
[Report No. 103–486]
To amend the Fair Credit Reporting Act to assure the completeness and
accuracy of consumer information maintained by credit reporting agen-
cies, to better inform consumers of their rights under the Act, and
to improve enforcement, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 18, 1993
Mr. TORRES (for himself and Mr. GONZALEZ, Mr. KENNEDY, Mr. SCHUMER,
Mr. GUTIERREZ, Mr. RUSH, Ms. ROYBAL-ALLARD, Mr. BARRETT of Wis-
consin, Ms. FURSE, Ms. VELA´ZQUEZ, Mr. WYNN, Mr. WATT, Mr.
HINCHEY, Mr. FLAKE, Ms. WATERS, and Mrs. MALONEY) introduced the
following bill; which was referred to the Committee on Banking, Finance
and Urban Affairs
NOVEMBER 18, 1993
Additional sponsors: Mrs. JOHNSON of Connecticut, Mr. FIELDS of Louisiana,
Mr. BILBRAY, Mr. MAZZOLI, Mr. BARLOW, Mr. SMITH of New Jersey,
Mr. FRANK of Massachusetts, Mr. RICHARDSON, Mr. SHAYS, Ms.
PELOSI, Mr. FILNER, Mr. KLECZKA, and Mr. ENGEL
APRIL 28, 1994
Additional sponsors: Mr. ROMERO-BARCELO´, Mr. GILMAN, Mr. BLUTE, Mr.
STARK, and Mrs. MORELLA
APRIL 28, 1994
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on February 18, 1993]
A BILL
To amend the Fair Credit Reporting Act to assure the com-
pleteness and accuracy of consumer information main-
tained by credit reporting agencies, to better inform con-
sumers of their rights under the Act, and to improve
enforcement, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—AMENDMENTS TO FAIR
CREDIT REPORTING ACT
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Consumer Reporting
Reform Act of 1994’’.
SEC. 102. DEFINITIONS.
(a) ADVERSE ACTION.—Section 603 of the Fair Credit
Reporting Act (15 U.S.C. 1681a) is amended by adding at
the end the following new subsection:
‘‘(k) The term ‘adverse action’—
‘‘(1) has the meaning given to such term in sec-
tion 701(d)(6) of the Equal Credit Opportunity Act;
and
‘‘(2) includes—
‘‘(A) any denial of, increase in any charge
for, or reduction in the amount of, insurance for
personal, family, or household purposes made in
connection with the underwriting of insurance;
‘‘(B) any denial of employment or any
other decision for employment purposes which
adversely affects any current or prospective em-
ployee; and
‘‘(C) any action taken or determination
made—
‘‘(i) in connection with an application
which was made by, or a transaction which
was initiated by, any consumer; and
‘‘(ii) which is adverse to the interest of
the consumer.’’.
(b) FIRM OFFER OF CREDIT.—Section 603 of the Fair
Credit Reporting Act (15 U.S.C. 1681a) is further amended
by adding after subsection (k) (as added by subsection (a)
of this section) the following:
‘‘(l) The term ‘firm offer of credit’—
‘‘(1) means any offer of credit to a consumer
that, except as provided in paragraph (2), will be
honored if the consumer is determined, based on in-
formation in a consumer report on the consumer, to
meet the specific criteria used to select the consumer
for the offer; and
‘‘(2) includes an offer of credit described in
paragraph (1) for which extension of credit may be
conditioned solely on any combination of the follow-
ing:
‘‘(A) The consumer being determined, based
on information in the consumer’s application for
the credit, to meet specific income criteria or em-
ployment criteria (or both) that are estab-
lished—
‘‘(i) before selection of the consumer for
the offer; and
‘‘(ii) for the purpose of determining
whether to extend credit pursuant to the
offer.
‘‘(B) Verification—
‘‘(i) that the consumer continues to
meet the specific criteria used to select the
consumer for the offer, by using information
in a consumer report on the consumer, in-
formation in the consumer’s application for
the credit, or other information bearing on
the creditworthiness of the consumer; or
‘‘(ii) of the information in the consum-
er’s application for the credit, to determine
that the consumer meets the specific income
criteria or employment criteria (or both).
‘‘(C) The consumer furnishing any collat-
eral that is a requirement for the extension of the
credit that was—
‘‘(i) established before selection of the
consumer for the offer of credit; and
‘‘(ii) described to the consumer in the
offer of credit.’’.
(c) CREDIT TRANSACTION WHICH IS NOT INITIATED
BY THE CONSUMER.—Section 603 of the Fair Credit Re-
porting Act (15 U.S.C. 1681a) is further amended by add-
ing after subsection (l) (as added by subsection (b) of this
section) the following:
‘‘(m) The term ‘credit transaction which is not initi-
ated by the consumer’ does not include the use of a consumer
report by a person with which the consumer has an account,
for purposes of—
‘‘(1) reviewing the account; or
‘‘(2) collecting the account.’’.
(d) STATE.—Section 603 of the Fair Credit Reporting
Act (15 U.S.C. 1681a) is further amended by adding after
subsection (m) (as added by subsection (c) of this section)
the following:
‘‘(n) The term ‘State’ means any State, the Common-
wealth of Puerto Rico, the District of Columbia, and any
territory or possession of the United States.’’.
(e) EXCLUSIONS FROM DEFINITION OF CONSUMER RE-
PORT.—Section 603(d) of the Fair Credit Reporting Act (15
U.S.C. 1681a(d)) is amended in the second sentence in
clause (A)—
(1) by inserting ‘‘(i)’’ after ‘‘(A)’’;
(2) by inserting before the semicolon at the end
the following: ‘‘, (ii) any communication of that in-
formation among persons related by common owner-
ship or affiliated by corporate control, or (iii) any
communication of information from a credit applica-
tion by a consumer among persons related by common
ownership or affiliated by corporate control if it is
clearly and conspicuously disclosed (I) with the appli-
cation that the information may be communicated
among such persons and the consumer consents, or
(II) with respect to existing customers, at any time
prior to the time that the information is initially
communicated, that such information may be commu-
nicated among such persons and the consumer is
given the opportunity, prior to the time that the in-
formation is initially communicated, to direct in
writing that such information not be communicated
among such persons’’;
(3) in clause (B) by striking ‘‘or’’ after the semi-
colon at the end;
(4) in clause (C) by striking the period and in-
serting a semicolon; and
(5) by adding at the end the following: ‘‘or (D)
any communication of information about a consumer
between persons who are affiliated by common owner-
ship or common corporate control and in connection
with a credit transaction which is not initiated by
the consumer, if either of those persons has complied
with section 615(d)(4)(B) with respect to a consumer
report from which the information is taken and the
consumer has consented to use of the report for the
transaction, or with respect to existing customers, the
consumer has not directed in writing that the report
may not be used for the transaction, in accordance
with section 615(d)(4)(C).’’.
(f) EXCLUSION OF CERTAIN COMMUNICATIONS BY EM-
PLOYMENT AGENCIES FROM DEFINITION OF CONSUMER
REPORT.—Section 603 of the Fair Credit Reporting Act (15
U.S.C. 1681(a)) is further amended—
(1) in subsection (d), as amended by subsection
(e) of this section, by adding at the end the following:
‘‘The term also does not include a communication de-
scribed in subsection (o).’’; and
(2) by adding at the end the following:
‘‘(o) COMMUNICATIONS
BY EMPLOYMENT AGENCIES
EXCLUDED FROM DEFINITION OF CONSUMER REPORT.—
A communication is described in this subsection if it is a
communication—
‘‘(1) that, but for the 3rd sentence of subsection
(d), would be an investigative consumer report;
‘‘(2) that is made to a prospective employer for
the purpose of—
‘‘(A) procuring an employee for the em-
ployer, or
‘‘(B) procuring an opportunity for a natu-
ral person to work for the employer;
‘‘(3) that is made by a person that regularly per-
forms such procurement;
‘‘(4) that is not used by any person for any pur-
pose other than a purpose described in paragraph (2)
(A) or (B);
‘‘(5) with respect to which—
‘‘(A) the consumer who is the subject of the
communication—
‘‘(i) consents orally or in writing to
the nature and scope of the communication,
before the collection of any information for
the purpose of making the communication;
‘‘(ii) consents orally or in writing to
the making of the communication to a pro-
spective employer, before the making of the
communication; and
‘‘(iii) in the case of consent under
clause (i) or (ii) given orally, is provided
written confirmation of that consent by the
person making the communication, within
3 business days after the receipt of the con-
sent by that person;
‘‘(B) the person that makes the communica-
tion does not, for the purpose of making the com-
munication, make any inquiry that if made by
a prospective employer of the consumer who is
the subject of the communication would violate
any applicable Federal or State equal employ-
ment opportunity law or regulation; and
‘‘(C) the person that makes the communica-
tion—
‘‘(i) 
discloses 
in 
writing 
to 
the
consumer who is the subject of the commu-
nication, within 5 business days after re-
ceiving any request from the consumer for
such disclosure, the nature and substance of
all information in the consumer’s file at the
time of the request, except that the sources
of information that is acquired solely for
use in making the communication and ac-
tually used for no other purpose need not be
disclosed other than under appropriate dis-
covery procedures in the court in which an
action is brought; and
‘‘(ii) notifies the consumer that is the
subject of the communication, in writing, of
the consumer’s right to request the informa-
tion described in clause (i).’’.
(g) CLERICAL AMENDMENT.—Section 603(d) of the
Fair Credit Reporting Act (15 U.S.C. 1681a(d)) is amended
in the first sentence—
(1) by inserting ‘‘(1)’’ after ‘‘in whole or in part
for’’; and
(2) by striking ‘‘(1)’’ before ‘‘credit or insur-
ance’’.
SEC. 103. FURNISHING CONSUMER REPORTS; USE FOR EM-
PLOYMENT PURPOSES.
(a) FURNISHING CONSUMER REPORTS FOR BUSINESS
TRANSACTIONS.—Section 604 of the Fair Credit Reporting
Act (15 U.S.C. 1681b) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘A
consumer reporting agency’’; and
(2) in subsection (a)(3) (as designated by para-
graph (1) of this subsection) by amending subpara-
graph (E) to read as follows:
‘‘(E) otherwise has a legitimate business need for
the information in connection with a business trans-
action that is initiated by the consumer.’’.
(b) FURNISHING AND USING CONSUMER REPORTS FOR
EMPLOYMENT PURPOSES.—Section 604 of the Fair Credit
Reporting Act (15 U.S.C. 1681b) is further amended by
adding at the end the following new subsection:
‘‘(b) CONDITIONS
FOR
FURNISHING
AND
USING
CONSUMER REPORTS FOR EMPLOYMENT PURPOSES.—
‘‘(1) CERTIFICATION FROM USER.—A consumer
reporting agency may furnish a consumer report for
employment purposes only if—
‘‘(A) the person who obtains such report
from the agency certifies to the agency that—
‘‘(i) the person has complied with
paragraph (2) with respect to the consumer
report, and the person will comply with
paragraph (3) with respect to the consumer
report if paragraph (3) becomes applicable;
and
‘‘(ii) information from the consumer
report will not be used in violation of any
applicable Federal or State equal employ-
ment opportunity law or regulation; and
‘‘(B) the consumer reporting agency pro-
vides with the report a summary of the consum-
er’s rights under this title, as prescribed by the
Federal 
Trade 
Commission 
under 
section
609(c)(3).
‘‘(2) DISCLOSURE
TO
CONSUMER.—A person
may not procure a consumer report, or cause a
consumer report to be procured, for employment pur-
poses with respect to any consumer unless—
‘‘(A) a clear and conspicuous disclosure has
been made in writing to the consumer at any
time before the report is procured or caused to be
procured, in a document that consists solely of
the disclosure, that a consumer report may be ob-
tained for employment purposes; and
‘‘(B) the consumer has authorized in writ-
ing the procurement of the report by that person.
‘‘(3) CONDITIONS
ON
USE
FOR
ADVERSE
AC-
TIONS.—In using a consumer report for employment
purposes, before taking any adverse action based in
whole or in part on the report a person shall provide
to the consumer to whom the report relates—
‘‘(A) a copy of the report;
and as part of the normal duties of employ-
ment—
‘‘(i) to handle or otherwise have access
to substantial amounts of cash or other
things of value of the employer: or
‘‘(ii) to engage in any conduct or ac-
tivity with respect to which the employee
has a fiduciary duty.’’.
SEC. 104. AMENDMENTS RELATING TO USE OF CONSUMER
REPORTS FOR PRESCREENING; PROHIBITION
ON UNAUTHORIZED OR UNCERTIFIED USE OF
INFORMATION.
(a) IN GENERAL.—Section 604 of the Fair Credit Re-
porting Act (15 U.S.C. 1681b), as amended by section 103,
is further amended—
(1) in subsection (a) by striking ‘‘A consumer re-
porting agency’’ and inserting ‘‘Subject to subsection
(c), any consumer reporting agency’’; and
(2) by adding after subsection (b) (as added by
section 103(b)) the following new subsections:
‘‘(c) FURNISHING REPORTS
IN CONNECTION WITH
CREDIT
TRANSACTIONS
NOT
INITIATED
BY
THE
CONSUMER.—
‘‘(1) IN GENERAL.—A consumer reporting agen-
cy may furnish a consumer report relating to any
consumer pursuant to subsection (a)(3)(A) in connec-
tion with any credit transaction which is not initi-
ated by the consumer only if—
‘‘(A) the consumer authorizes the agency to
provide such report to such person; or
‘‘(B)(i) the transaction consists of a firm
offer of credit;
‘‘(ii) the consumer reporting agency has
complied with subsection (d); and
‘‘(iii) the consumer has not elected in ac-
cordance with subsection (d)(1) to have the con-
sumer’s name and address excluded from lists of
names provided by the agency pursuant to this
paragraph.
‘‘(2) LIMITS ON INFORMATION RECEIVED UNDER
PARAGRAPH (1)(B).—A person may receive pursuant
to paragraph (1)(B) only—
‘‘(A) the name and address of a consumer;
‘‘(B) an identifier that is not unique to the
consumer and is used by the person solely for the
purpose of verifying the identity of the consumer;
and
‘‘(C) information pertaining to a consumer
that is not identified or identifiable with the
consumer.
‘‘(3) INFORMATION REGARDING INQUIRIES.—Ex-
cept as provided in section 609(a)(5), a consumer re-
porting agency shall not furnish to any person a
record of inquiries in connection with credit trans-
actions which are not initiated by a consumer.
‘‘(d) ELECTION
OF CONSUMER TO BE EXCLUDED
FROM LISTS.—
‘‘(1) IN
GENERAL.—A consumer may elect to
have his or her name and address excluded from any
list provided by a consumer reporting agency in con-
nection with a credit transaction which is not initi-
ated by the consumer, by—
‘‘(A) notifying the agency, through the noti-
fication system maintained by the agency under
paragraph (3), that the consumer does not con-
sent to any use of consumer reports relating to
the consumer in connection with any credit
transaction which is not initiated by the
consumer; and
‘‘(B) returning to the agency a signed writ-
ten notice of the election, if provided by the agen-
cy in accordance with paragraph (2).
‘‘(2) 
PROVISION
OF
WRITTEN
NOTICE
TO
CONSUMER.—A consumer reporting agency shall pro-
vide to a consumer a written notice for purposes of
paragraph (1)(B), by not later than 5 business days
after being notified of the election of the consumer in
accordance with paragraph (1)(A).
‘‘(3) NOTIFICATION SYSTEM.—Each consumer re-
porting agency which furnishes a consumer report in
connection with any credit transaction which is not
initiated by a consumer, shall—
‘‘(A) establish and maintain a notification
system, including a toll-free telephone number,
which permits any consumer whose consumer re-
port is maintained by the agency to notify the
agency, with appropriate identification, of the
consumer’s election to have the consumer’s name
and address excluded from any list of names and
addresses provided by the agency for such a
transaction; and
‘‘(B) publish by not later than 12 months
after the date of the enactment of the Consumer
Reporting Reform Act of 1994, and at least an-
nually thereafter, in a publication of general cir-
culation in the area served by the agency—
‘‘(i) a notification that information in
consumer files maintained by the agency
may be used in connection with such trans-
actions; and
‘‘(ii) the address and toll-free telephone
number for consumers to use to notify the
agency of the consumer’s election under sub-
paragraph (A).
Establishment and maintenance of a notification sys-
tem (including a toll-free telephone number) and pub-
lication by a consumer reporting agency on its own
behalf and on behalf of any of its affiliates in accord-
ance with this paragraph is deemed to be compliance
with this paragraph by each of those affiliates.
‘‘(4) AGENCIES WHICH OPERATE NATIONWIDE.—
Each consumer reporting agency which compiles and
maintains files on consumers on a nationwide basis
shall establish and maintain a notification system for
purposes of paragraph (3) jointly with other such
consumer reporting agencies.
‘‘(5) EFFECTIVENESS OF ELECTION.—An election
of a consumer under paragraph (1)—
‘‘(A) shall be effective with respect to a
consumer reporting agency beginning on the
later of—
‘‘(i) the date on which the consumer
notifies the agency in accordance with
paragraph (1)(A); or
‘‘(ii) the date on which the consumer
returns to the agency a signed written
notification of the election in accordance
with paragraph (1)(B), if provided by the
agency;
‘‘(B) shall not be effective after the date on
which the consumer notifies the agency (through
the system established by the agency under para-
graph (3)) that the election is no longer effective;
and
‘‘(C) shall be effective with respect to each
affiliate of the agency.’’.
(b) FURNISHING CONSUMER REPORTS FOR CERTAIN
DIRECT MARKETING TRANSACTIONS PROHIBITED.—Sec-
tion 604 of the Fair Credit Reporting Act (15 U.S.C.
1681b) is further amended by adding after subsection (d)
(as added by subsection (a) of this section) the following
new subsection:
‘‘(e) FURNISHING CONSUMER REPORTS FOR CERTAIN
DIRECT
MARKETING
TRANSACTIONS
PROHIBITED.—A
consumer reporting agency may not furnish a consumer re-
port for use for a direct marketing transaction which is
not initiated by the consumer to whom the report relates.’’.
(c) USE
OF INFORMATION OBTAINED FROM RE-
PORTS.—Section 604 of the Fair Credit Reporting Act (15
U.S.C. 1681b) is further amended by adding after sub-
section (e) (as added by subsection (b) of this section) the
following new subsection:
‘‘(f) CERTAIN USE OR OBTAINING OF INFORMATION
PROHIBITED.—A person shall not use or obtain informa-
tion from a consumer report for any purpose unless—
‘‘(1) it is obtained for a purpose for which the
consumer report is authorized to be furnished under
subsection (a); and
‘‘(2) the purpose is certified in accordance with
section 607 by a prospective user of the report.’’.
(d) 
FIRST
NOTIFICATIONS
BY
CONSUMERS.—A
consumer may notify a consumer reporting agency through
a notification system established and maintained by the
agency under section 604(d) of the Fair Credit Reporting
Act, as amended by subsection (a), on or after the date
which is 455 days after the date of the enactment of this
Act.
SEC. 105. CONSUMER CONSENT REQUIRED TO FURNISH
CONSUMER REPORT CONTAINING MEDICAL
INFORMATION.
Section 604 of the Fair Credit Reporting Act (15
U.S.C. 1681b), as amended by sections 103 and 104, is fur-
ther amended by adding at the end the following:
‘‘(g) FURNISHING REPORTS CONTAINING MEDICAL IN-
FORMATION.—A consumer reporting agency shall not fur-
nish for employment purposes, or in connection with a cred-
it transaction, a consumer report which contains medical
information about a consumer, unless the consumer con-
sents to the furnishing of the report.’’.
SEC. 106. AMENDMENTS RELATING TO OBSOLETE INFORMA-
TION 
AND 
INFORMATION 
CONTAINED 
IN
CONSUMER REPORTS.
(a) REPEAL LARGE-DOLLAR EXCEPTIONS.—Section
605 of the Fair Credit Reporting Act (15 U.S.C. 1681c)
is amended—
(1) in subsection (a) by striking ‘‘(a) Except as
authorized under subsection (b), no’’ and inserting
‘‘(a) INFORMATION EXCLUDED FROM CONSUMER RE-
PORTS.—No’’; and
(2) by striking subsection (b).
(b) CLARIFICATION OF REPORTING PERIOD.—Section
605 of the Fair Credit Reporting Act (15 U.S.C. 1681c),
as amended by subsection (a), is further amended by adding
at the end the following new subsection:
‘‘(b) RUNNING OF REPORTING PERIOD.—(1) The 7-
year period referred to in paragraphs (4) and (6) of sub-
section (a) shall begin, with respect to any delinquent ac-
count which is placed for collection (internally or by refer-
ral to a 3d party, whichever is earlier), charged to profit
and loss, or subjected to any similar action, upon the expi-
ration of the 180-day period beginning on the date of the
commencement of the delinquency which immediately pre-
ceded the collection activity, charge to profit and loss, or
similar action.
‘‘(2) Paragraph (1) applies only to items of informa-
tion added to a consumer report on or after the date that
is 455 days after the date of the enactment of the Consumer
Reporting Reform Act of 1994.’’.
(c) ADDITIONAL INFORMATION ON BANKRUPTCY FIL-
INGS REQUIRED.—Section 605 of the Fair Credit Reporting
Act (15 U.S.C. 1681c) is further amended by adding after
subsection (b) (as added by subsection (b) of this section)
the following new subsection:
‘‘(c) INFORMATION REQUIRED TO BE DISCLOSED.—
Any consumer reporting agency which furnishes a consumer
report which contains information regarding any case in-
volving the consumer which arises under title 11, United
States Code, shall include in the report an identification
of the chapter of such title 11 under which such case arises
if provided by the source of the information. If any case
arising or filed under title 11, United States Code, is with-
drawn by the consumer prior to a final judgment, the
consumer reporting agency shall include in the report that
such case or filing was withdrawn upon receipt of docu-
mentation certifying such withdrawal.’’.
(d) INDICATION OF CLOSURE OF ACCOUNT; INDICA-
TION OF DISPUTE BY CONSUMER.—Section 605 of the Fair
Credit Reporting Act (15 U.S.C. 1681c) is further amended
by adding after subsection (c) (as added by subsection (c)
of this section) the following new subsections:
‘‘(d) INDICATION
OF
CLOSURE
OF
ACCOUNT
BY
CONSUMER.—If a consumer reporting agency is notified
pursuant to section 623(a)(4) that a credit account of a
consumer was voluntarily closed by the consumer, the agen-
cy shall indicate that fact in any consumer report that in-
cludes information related to the account.
‘‘(e) INDICATION OF DISPUTE BY CONSUMER.—If a
consumer reporting agency is notified pursuant to section
623(a)(3) that information regarding a consumer that was
furnished to the agency is disputed by the consumer, the
agency shall indicate that fact in each consumer report that
includes the disputed information.’’.
(e) PROHIBITION ON MAINTAINING OR FURNISHING
CERTAIN ACCOUNT INFORMATION.—
(1) IN GENERAL.—Section 605 of the Fair Credit
Reporting Act (15 U.S.C. 1681c) is further amended
by adding at the end the following new subsection:
‘‘(f) CERTAIN ACCOUNT INFORMATION.—
‘‘(1) EXCLUSION FROM CONSUMER REPORT.—A
consumer reporting agency shall not maintain in the
file of a consumer, or furnish a consumer report on
a consumer which contains, any information regard-
ing a failure of the consumer to make any payment
on an account of the consumer that became due in a
period during which the consumer was receiving as-
sistance pursuant to a declaration of an emergency by
the President under The Robert T. Stafford Disaster
Relief and Emergency Assistance Act, or unemploy-
ment compensation under the laws of any State (or
but for the exhaustion of benefits would be entitled to
receive such compensation), if—
‘‘(A) the consumer requests in writing that
the consumer reporting agency exclude the infor-
mation from either the file or such reports;
‘‘(B) the consumer provides to the agency
appropriate documentation which demonstrates
that the consumer was receiving such assistance
or was receiving (or would so be entitled to re-
ceive) such compensation during that period;
and
‘‘(C) the account is maintained in a current
status during the 1-year period ending on the
date of the submittal of the request.
‘‘(2) APPROPRIATE DOCUMENTATION.—The Fed-
eral Trade Commission shall prescribe what con-
stitutes appropriate documentation for purposes of
paragraph (1).’’.
(g) CLERICAL AMENDMENTS.—
(1) The heading for section 605 of the Fair Cred-
it Reporting Act (15 U.S.C. 1681c) is amended by
striking ‘‘Obsolete information’’ and inserting
‘‘Requirements relating to information
contained in consumer reports’’.
(2) The table of sections at the beginning of the
Fair Credit Reporting Act (15 U.S.C. 1681a et seq.)
is amended by striking the item relating to section
605 and inserting the following:
‘‘605. Requirements relating to information contained in consumer reports.’’.
SEC. 107. AMENDMENTS RELATING TO COMPLIANCE PRO-
CEDURES.
(a) 
DISCLOSURE
OF
CONSUMER
REPORTS
BY
USERS.—Section 607 of the Fair Credit Reporting Act (15
U.S.C. 1681e) is amended by adding at the end the follow-
ing new subsection:
‘‘(c) DISCLOSURE OF CONSUMER REPORTS BY USERS
ALLOWED.—A consumer reporting agency may not prohibit
a user of a consumer report furnished by the agency on a
consumer from disclosing the contents of the report to the
consumer, if adverse action against the consumer has been
taken, or is contemplated, by the user based in whole or
in part on the report.’’.
(b) NOTICE TO USERS AND PROVIDERS OF INFORMA-
TION TO ENSURE COMPLIANCE.—Section 607 of the Fair
Credit Reporting Act (15 U.S.C. 1681e) is further amended
by adding after subsection (c) (as added by subsection (a)
of this section) the following new subsection:
‘‘(d) NOTICE TO USERS AND FURNISHERS OF INFOR-
MATION.—
‘‘(1) NOTICE
REQUIREMENT.—A consumer re-
porting agency shall provide to any person—
‘‘(A) who regularly and in the ordinary
course of business furnishes information to the
agency with respect to any consumer; or
‘‘(B) to whom a consumer report is pro-
vided by the agency;
a notice of such person’s responsibilities under this
title.
‘‘(2) CONTENT OF NOTICE.—The Federal Trade
Commission shall prescribe the content of notices
under paragraph (1).’’.
(c) RECORD OF IDENTITY OF USERS AND PURPOSES
CERTIFIED BY USERS OF REPORTS.—Section 607 of the
Fair Credit Reporting Act (15 U.S.C. 1681e) is further
amended by adding after subsection (d) (as added by sub-
section (b) of this section) the following new subsection:
‘‘(e) PROCUREMENT OF CONSUMER REPORT FOR RE-
SALE.—
‘‘(1) DISCLOSURE.—A person may not procure a
consumer report for purposes of reselling the report
(or any information in the report) unless the person
discloses to the consumer reporting agency which
originally furnishes the report—
‘‘(A) the identity of the ultimate end-user of
the report (or information), and
‘‘(B) each permissible purpose under section
604 for which the report is furnished to the ulti-
mate end-user of the report (or information).
‘‘(2) RESPONSIBILITIES OF PROCURERS FOR RE-
SALE.—A person which procures a consumer report
for purposes of reselling the report (or any informa-
tion in the report) shall—
‘‘(A) establish and comply with reasonable
procedures designed to ensure that the report (or
information) is resold by the person only for a
purpose for which the report may be furnished
under section 604, including by requiring that
each person to which the report (or information)
is resold—
‘‘(i) identifies each prospective user of
the resold report (or information);
‘‘(ii) certifies each purpose for which
the report (or information) will be used;
and
‘‘(iii) certifies that the report (or infor-
mation) will be used for no other purpose;
and
‘‘(B) before reselling the report, make rea-
sonable efforts to verify the identifications and
certifications made under subparagraph (A).’’.
SEC. 108. AMENDMENTS RELATING TO CONSUMER DISCLO-
SURES.
(a) ALL INFORMATION
IN CONSUMER’S FILE RE-
QUIRED TO BE DISCLOSED.—Section 609(a)(1) of the Fair
Credit Reporting Act (15 U.S.C. 1681g(a)(1)) is amended
to read as follows:
‘‘(1) All information in the consumer’s file at the
time of the request.’’.
(b) MORE INFORMATION CONCERNING RECIPIENTS OF
REPORTS REQUIRED.—Section 609(a)(3) of the Fair Credit
Reporting Act (15 U.S.C. 1681g(a)) is amended to read as
follows:
‘‘(3)(A) Identification of each person (including
each ultimate end-user identified under section
607(e)(1)) who procured a consumer report—
‘‘(i) for employment purposes within the 2-
year period preceding the request; or
‘‘(ii) for any other purpose within the 1-
year period preceding the request.
‘‘(B) An identification of a person under sub-
paragraph (A) shall include—
‘‘(i) the name of the person or, if applicable,
the trade name (written in full) under which
such person conducts business; and
‘‘(ii) upon request of the consumer, the ad-
dress and telephone number of the person.’’.
(c) DISCLOSURE OF PERMISSIBLE PURPOSES.—Sec-
tion 609(a) of the Fair Credit Reporting Act (15 U.S.C.
1681g(a)) is further amended by adding at the end the fol-
lowing:
‘‘(4) The permissible purpose for which each per-
son identified under paragraph (3) procured a
consumer report.’’.
(d) INFORMATION REGARDING INQUIRIES.—Section
609(a) of the Fair Credit Reporting Act (15 U.S.C.
1681g(a)) is amended by adding after paragraph (4) (as
added by subsection (c) of this section) the following:
‘‘(5) A record of all inquiries received by the
agency in the 1-year period preceding the request that
identified the consumer in connection with a credit
transaction 
which 
was 
not 
initiated 
by 
the
consumer.’’.
(e) DISCLOSING
THE FACTS REGARDING CHECKS
UPON WHICH ADVERSE CHARACTERIZATION IS BASED.—
Section 609(a) of the Fair Credit Reporting Act (15 U.S.C.
1681g(a)) is amended by adding after paragraph (5) (as
added by subsection (d) of this section) the following:
‘‘(6) The dates, original payees, and amounts of
any checks upon which is based any adverse charac-
terization of the consumer included in the file at the
time of the disclosure.’’.
(f) SUMMARY OF RIGHTS REQUIRED TO BE INCLUDED
WITH DISCLOSURE.—
(1) IN GENERAL.—Section 609 of the Fair Credit
Reporting Act (15 U.S.C. 1681g) is amended by add-
ing at the end the following new subsection:
‘‘(c) SUMMARY
OF RIGHTS REQUIRED TO BE IN-
CLUDED WITH DISCLOSURE.—
‘‘(1) SUMMARY OF RIGHTS.—A consumer report-
ing agency shall provide to a consumer, with each
written disclosure by the agency to the consumer
under this section—
‘‘(A) a written summary of all rights the
consumer has under this title; and
‘‘(B) in the case of a consumer reporting
agency that compiles and maintains files on con-
sumers on a nationwide basis, the toll-free tele-
phone number established by the agency pursu-
ant to section 607(f).
‘‘(2) SPECIFIC
ITEMS
REQUIRED
TO
BE
IN-
CLUDED.—The summary of rights required under
paragraph (1) shall include—
‘‘(A) a brief description of this title and all
rights of consumers under this title;
‘‘(B) an explanation of how the consumer
may exercise the rights of the consumer under
this title;
‘‘(C) a list of all Federal agencies respon-
sible 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 agen-
cy; and
‘‘(D) a statement that a consumer reporting
agency is not required to remove accurate derog-
atory information from a consumer’s file, unless
the information is outdated under section 605 or
cannot be verified.
‘‘(3) FORM OF SUMMARY OF RIGHTS.—For pur-
poses of this subsection and any disclosure by a
consumer reporting agency required under this title
with respect to consumers’ rights, the Federal Trade
Commission (after consultation with each Federal
agency referred to in section 621(b)) shall prescribe
the form and content of any disclosure of the rights
of consumers required under this title.’’.
(2) 
TECHNICAL
AMENDMENT.—Section
606(a)(1)(B) of the Fair Credit Reporting Act (15
U.S.C. 1681d(a)(1)(B)) is amended by inserting ‘‘and
the written summary of the rights of the consumer
prepared pursuant to section 609(c)’’ before the semi-
colon.
(g) FORM OF DISCLOSURES.—
(1) IN GENERAL.—Subsections (a) and (b) of sec-
tion 610 of the Fair Credit Reporting Act (15 U.S.C.
1681h) are amended to read as follows:
‘‘(a) IN GENERAL.—
‘‘(1) PROPER IDENTIFICATION.—A consumer re-
porting agency shall require, as a condition of mak-
ing the disclosures required under section 609, that
the consumer furnish proper identification.
‘‘(2) DISCLOSURE IN WRITING.—Except as pro-
vided in subsection (b), the disclosures required to be
made under section 609 shall be provided under that
section in writing.
‘‘(b) OTHER FORMS OF DISCLOSURE.—
‘‘(1) IN GENERAL.—If authorized by a consumer,
a consumer reporting agency may make the disclo-
sures required under 609—
‘‘(A) other than in writing; and
‘‘(B) in such form as may be—
‘‘(i) specified by the consumer in ac-
cordance with paragraph (2); and
‘‘(ii) available from the agency.
‘‘(2) FORM.—A consumer may specify pursuant
to paragraph (1) that disclosures under section 609
shall be made—
‘‘(A) in person, upon the appearance of the
consumer at the place of business of the consumer
reporting agency where disclosures are regularly
provided, during normal business hours, and on
reasonable notice;
‘‘(B) by telephone, if the consumer has made
a written request for disclosure by telephone;
‘‘(C) by electronic means, if available from
the agency; or
‘‘(D) by any other reasonable means that is
available from the agency.’’.
(2) SIMPLIFIED
DISCLOSURE.—Section 610 of
the Fair Credit Reporting Act (15 U.S.C. 1681h) is
amended by adding at the end the following:
‘‘(f) SIMPLIFIED DISCLOSURE.—The Federal Trade
Commission shall prescribe the form in which a consumer
reporting agency shall make the disclosures required under
section 609(a), for the purpose of maximizing the com-
prehensibility and standardization of such disclosures.’’.
(3) CONFORMING AMENDMENTS.—
(A) Section 609(a) of the Fair Credit Re-
porting Act (15 U.S.C. 1681h(a)) is amended in
the matter preceding paragraph (1) by striking
‘‘and proper identification of any consumer’’
and inserting ‘‘and subject to section 610(a)(1)’’.
(B) Section 610 of the Fair Credit Report-
ing Act (15 U.S.C. 1681h) is amended in the
heading for the section by inserting ‘‘and
form’’ after ‘‘Conditions’’.
(C) The table of sections at the beginning of
the Fair Credit Reporting Act (15 U.S.C. 1681a
et seq.) is amended in the item relating to sec-
tion 610 by inserting ‘‘and form’’ after ‘‘Condi-
tions’’.
SEC. 109. AMENDMENTS RELATING TO PROCEDURES IN
CASE OF THE DISPUTED ACCURACY OF ANY
INFORMATION IN A CONSUMER’S FILE.
(a) IN GENERAL.—Section 611(a) of the Fair Credit
Reporting Act (15 U.S.C. 1681i(a)) is amended to read as
follows:
‘‘(a) REINVESTIGATIONS
OF
DISPUTED
INFORMA-
TION.—
‘‘(1) REINVESTIGATION REQUIRED.—
‘‘(A) IN GENERAL.—If the completeness or
accuracy of any item of information contained
in any consumer’s file at any consumer report-
ing agency is disputed by the consumer and the
consumer notifies the agency directly of such dis-
pute, the agency shall reinvestigate free of charge
and record the current status of the disputed in-
formation, or delete the item from the file in ac-
cordance with paragraph (5), before the end of
the 30-day period beginning on the date the
agency receives the notice of the dispute from the
consumer.
‘‘(B) 
EXTENSION
OF
PERIOD
TO
REINVESTIGATE.—Except as provided in sub-
paragraph (C), the 30-day period described in
subparagraph (A) may be extended if—
‘‘(i) the consumer reporting agency re-
ceives information from the consumer with-
in that 30-day period that is relevant to the
reinvestigation; and
‘‘(ii) the consumer reporting agency
has provided clear and conspicuous notice
to the consumer, in a disclosure under sec-
tion 609(c), of the circumstances that may
cause such an extension.
The period, as extended, shall end not later than
15 days after the last date the agency receives
such information.
‘‘(C) LIMITATIONS ON EXTENSION OF PE-
RIOD
TO
REINVESTIGATE.—Subparagraph (B)
shall not apply to any reinvestigation in which,
in the 30-day period described in subparagraph
(A), the information that is the subject of the
reinvestigation is found to be inaccurate or in-
complete or cannot be verified.
‘‘(2) PROMPT
NOTICE
OF
DISPUTE
TO
FUR-
NISHER OF INFORMATION.—
‘‘(A) IN GENERAL.—Before the end of the 5-
day period beginning on the date a consumer re-
porting agency receives notice of a dispute from
any consumer in accordance with paragraph (1),
the agency shall provide notification of the dis-
pute to any person that provided any item of in-
formation in dispute, at the address and in the
manner established with the person. The notice
shall include disclosure of the date on which the
consumer reporting agency received notice of the
dispute from the consumer and all relevant in-
formation regarding the dispute that the agency
has received from the consumer.
‘‘(B) PROVISION
OF
OTHER
INFORMATION
FROM
CONSUMER.—The 
consumer 
reporting
agency shall promptly provide to the person that
provided the information in dispute all relevant
information regarding the dispute that is re-
ceived by the agency from the consumer after the
period referred to in subparagraph (A) and be-
fore the end of the period referred to in para-
graph (1)(A).
‘‘(3) DETERMINATION THAT DISPUTE IS FRIVO-
LOUS OR IRRELEVANT.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), a consumer reporting agency may ter-
minate a reinvestigation of information disputed
by a consumer under that paragraph if the agen-
cy reasonably determines that the dispute by the
consumer is frivolous or irrelevant, including by
reason of a failure by a consumer to provide suf-
ficient information to investigate the disputed
information.
‘‘(B) NOTICE
OF
DETERMINATION.—Upon
making any determination in accordance with
subparagraph (A) that a dispute is frivolous or
irrelevant, a consumer reporting agency shall no-
tify the consumer within 5 days of such deter-
mination, by mail or, if authorized by the
consumer for that purpose, by any other means
available to the agency.
‘‘(C) CONTENTS
OF
NOTICE.—A notice
under subparagraph (B) shall include—
‘‘(i) the reasons for the determination
under subparagraph (A); and
‘‘(ii) identification of any information
required to investigate the disputed infor-
mation.
‘‘(4) CONSIDERATION
OF
CONSUMER
INFORMA-
TION.—In conducting any reinvestigation under
paragraph (1) with respect to disputed information
in the file of any consumer, the consumer reporting
agency shall review and consider all relevant infor-
mation submitted by the consumer in the period de-
scribed in paragraph (1)(A) with respect to such dis-
puted information.
‘‘(5) TREATMENT OF INACCURATE OR UNVERIFI-
ABLE INFORMATION.—
‘‘(A) 
IN
GENERAL.—If, 
after 
any
reinvestigation under paragraph (1) of any in-
formation disputed by a consumer, an item of
the information is found to be inaccurate or in-
complete or cannot be verified, the consumer re-
porting agency shall promptly delete that item of
information from the consumer’s file. The infor-
mation deleted shall consist solely of the informa-
tion that was disputed by the consumer and
shall not include any portion of the same item
that was not disputed.
‘‘(B) 
REQUIREMENTS
RELATING
TO
REINSERTION OF PREVIOUSLY DELETED MATE-
RIAL.—
‘‘(i) CERTIFICATION OF ACCURACY OF
INFORMATION.—If any information is de-
leted from a consumer’s file pursuant to
subparagraph (A), the information may not
be reinserted in the file by the consumer re-
porting agency unless the person who fur-
nishes the information certifies that the in-
formation is complete and accurate.
‘‘(ii) NOTICE TO CONSUMER.—If any
information which has been deleted from a
consumer’s file pursuant to subparagraph
(A) is reinserted in the file, the consumer
reporting agency shall promptly notify the
consumer of the reinsertion in writing or, if
authorized by the consumer for that pur-
pose, by any other means available to the
agency.
‘‘(iii) ADDITIONAL INFORMATION.—As
part of or in addition to the notice under
clause (ii), a consumer reporting agency
shall provide to a consumer in writing
within the 5-day period beginning on the
date of the reinsertion—
‘‘(I) a statement that the disputed
information has been reinserted;
‘‘(II) a notice to the consumer
that if requested by the consumer the
agency shall provide to the consumer,
within 15 days after the date of the re-
quest, the name, business address, and
telephone number of any furnisher of
information contacted, or of any fur-
nisher of information which contacted
the consumer reporting agency, in con-
nection with the reinsertion of such in-
formation;
‘‘(III) the toll-free telephone num-
ber of the consumer reporting agency if
the agency is required to maintain
such a number under section 607(f), or
a telephone number that the consumer
can use to contact the agency with re-
spect to obtaining the information de-
scribed in subclause (II); and
‘‘(IV) a notice that the consumer
has the right to add a statement to the
consumer’s file disputing the accuracy
or completeness of the disputed infor-
mation.
‘‘(C) PROCEDURES TO PREVENT REAPPEAR-
ANCE.—A consumer reporting agency shall
maintain reasonable procedures designed to pre-
vent the reappearance in a consumer’s file, and
in consumer reports on the consumer, of infor-
mation that is deleted pursuant to this para-
graph (other than information that is reinserted
in accordance with subparagraph (B)(i)).
‘‘(D) FREE CONSUMER REPORT DURING 12-
MONTH PERIOD AFTER DELETION OF INFORMA-
TION.—Upon the request of a consumer, a
consumer reporting agency shall make all disclo-
sures pursuant to section 609 without charge to
that consumer at least once during the 12-month
period after the consumer receives a notification
under paragraph (6) or paragraph (8) of the de-
letion of information that is found to be inac-
curate or cannot be verified.
‘‘(E) Any nationwide consumer reporting
agency that maintains files on a consumer on a
nationwide basis that is subject to this section,
shall report the results of a reinvestigation that
finds incomplete or inaccurate information in a
consumer’s file to all other such agencies.
‘‘(6) 
NOTICE
OF
RESULTS
OF
REINVESTIGATION.—
‘‘(A) IN GENERAL.—A consumer reporting
agency shall provide written notice to a
consumer of the results of a reinvestigation under
this subsection within 5 days after the comple-
tion of the reinvestigation, by mail or, if author-
ized by the consumer for that purpose, by other
means available to the agency.
‘‘(B) CONTENTS.—As part of or in addition
to the notice under subparagraph (A), a
consumer reporting agency shall provide to a
consumer in writing within the 5-day period
referred to in subparagraph (A)—
‘‘(i) a statement that the reinves-
tigation is completed;
‘‘(ii) a consumer report that is based
upon the consumer’s file as that file is re-
vised as a result of the reinvestigation;
‘‘(iii) a description or indication of
any changes made in the consumer report
as a result of those revisions to the consum-
er’s file;
‘‘(iv) a notice that, if requested by the
consumer, a description of the procedure
used to determine the accuracy and com-
pleteness of the information shall be pro-
vided to the consumer by the agency, in-
cluding the name, business address, and
telephone number of any furnisher of infor-
mation contacted in connection with such
information;
‘‘(v) a notice that the consumer has the
right to add a statement to the consumer’s
file disputing the accuracy or completeness
of the information; and
‘‘(vi) a notice that the consumer has
the right to request under subsection (d)
that the consumer reporting agency furnish
notifications under that subsection.
‘‘(7) DESCRIPTION OF REINVESTIGATION PROCE-
DURE.—A consumer reporting agency shall provide to
a consumer a description referred to in paragraph
(6)(B)(iv) by not later than 15 days after receiving
a request from the consumer for that description.
‘‘(8) EXPEDITED
DISPUTE
RESOLUTION.—If a
dispute regarding an item of information in a con-
sumer’s file at a consumer reporting agency is re-
solved in accordance with paragraph (5)(A) by the
deletion of the disputed information by not later than
3 business days after the date on which the agency re-
ceives notice of the dispute from the consumer in ac-
cordance with paragraph (1)(A), then the agency
shall not be required to comply with paragraphs (2),
(6), and (7) with respect to that dispute if the agen-
cy—
‘‘(A) provides prompt notice of the deletion
to the consumer by telephone;
‘‘(B) includes in that notice, or in a written
notice that accompanies a confirmation and
consumer report provided in accordance with
subparagraph (C), a statement of the consumer’s
right to request under subsection (d) that the
agency furnish notifications under that sub-
section; and
‘‘(C) provides written confirmation of the
deletion and a copy of a consumer report on the
consumer which is based on the consumer’s file
after the deletion, within 5 days after making
the deletion.’’.
(b) CONFORMING AMENDMENT.—Subsection (d) of sec-
tion 611 of the Fair Credit Reporting Act (15 U.S.C.
1681i(d)) is amended by striking ‘‘The consumer reporting
agency shall clearly’’ and all that follows through the end
of the subsection.
SEC. 110. AMENDMENT RELATING TO CHARGES FOR DIS-
CLOSURE.
Section 612 of the Fair Credit Reporting Act (15
U.S.C. 1681j) is amended to read as follows:
‘‘§ 612. Charges for certain disclosures
‘‘(a) REASONABLE CHARGES ALLOWED FOR CERTAIN
DISCLOSURES.—Except as provided in subsections (b), (c),
and (d), a consumer reporting agency may impose a rea-
sonable charge on a consumer—
‘‘(1) for making a disclosure to the consumer
pursuant to section 609, which—
‘‘(A) shall not exceed $8; and
‘‘(B) shall be indicated to the consumer
prior to making disclosure; and
‘‘(2) for furnishing a notification, statement,
summary, or codification to any person designated by
the consumer pursuant to section 611(d), which—
‘‘(A) shall not exceed the charge that the
agency would impose on each designated recipi-
ent for a consumer report; and
‘‘(B) shall be indicated to the consumer
prior to furnishing such information.
‘‘(b) FREE CONSUMER REPORT AFTER ADVERSE NO-
TICE
TO CONSUMER.—Each consumer reporting agency
that maintains a file on a consumer shall make all disclo-
sures pursuant to section 609 without charge to the
consumer if, within 60 days after receipt by such consumer
of a notification pursuant to section 615 or of a notification
from a debt collection agency affiliated with that consumer
reporting agency stating that the consumer’s credit rating
may be or has been adversely affected, the consumer makes
a request under section 609.
‘‘(c) FREE CONSUMER REPORT ANNUALLY UPON RE-
QUEST OF CONSUMER.—Upon the request of a consumer,
a consumer reporting agency shall make all disclosures pur-
suant to section 609 without charge to that consumer at
least once each calendar year.
‘‘(d) CHARGE FOR CERTAIN NOTICES PROHIBITED.—
A consumer reporting agency shall not impose any charge
for—
‘‘(1) providing any notice to a consumer re-
quired under section 611; or
‘‘(2) notifying a person pursuant to section
611(d) of the deletion of information which is found
to be inaccurate or which can no longer be verified,
if the consumer designates that person to the agency
before the end of the 30-day period beginning on the
date of the notification of the consumer under section
611(a)(6) or 611(a)(8).
‘‘(e) REFUND OF CHARGE IN CASE OF DISPUTE.—A
consumer reporting agency shall refund to a consumer any
charge assessed to the consumer for providing a consumer
report in the 60-day period ending on the date on which
the consumer notifies the agency in accordance with section
611(a)(1), if after a reinvestigation under that section any
information in the file of the consumer is found to be incom-
plete or inaccurate.’’.
SEC. 111. AMENDMENTS RELATING TO DUTIES OF USERS
OF CONSUMER REPORTS.
(a) DUTIES OF USERS TAKING ADVERSE ACTIONS.—
Section 615(a) of the Fair Credit Reporting Act (15 U.S.C.
1681m(a)) is amended to read as follows:
‘‘(a) DUTIES OF USERS TAKING ADVERSE ACTIONS ON
THE BASIS OF INFORMATION CONTAINED IN CONSUMER
REPORTS.—If any person takes any adverse action with re-
spect to any consumer in connection with any transaction
initiated by the consumer or any employment determina-
tion, which is based in whole or in part on any information
contained in a consumer report, the person shall—
‘‘(1) provide written notice of the adverse action
to the consumer;
‘‘(2) provide to the consumer in writing, the
name, address, and telephone number of the consumer
reporting agency (including any toll-free telephone
number established by the agency pursuant to section
607(f)) which furnished the report to the person; and
‘‘(3) provide to the consumer a written notice of
the consumer’s right—
‘‘(A) to obtain, under section 612, a free
copy of a consumer report on the consumer, from
the consumer reporting agency referred to in
paragraph (2) and from any other consumer re-
porting agency that maintains a file on the
consumer and maintains files on consumers on
a nationwide basis, which notice shall include an
indication of the 60-day period under that sec-
tion for obtaining such a copy; and
‘‘(B) to dispute, under section 611, with a
consumer reporting agency the accuracy or com-
pleteness of any information in a consumer re-
port furnished by the agency.’’.
(b) DUTIES OF USERS WHO MAKE CERTAIN CREDIT
SOLICITATIONS.—Section 615 of the Fair Credit Reporting
Act (15 U.S.C. 1681m) is amended by adding at the end
the following new subsection:
‘‘(d) DUTIES OF USERS WHO MAKE WRITTEN CREDIT
SOLICITATIONS
ON
THE BASIS
OF INFORMATION CON-
TAINED IN CONSUMER FILES.—
‘‘(1) IN
GENERAL.—Any person who uses a
consumer report on any consumer in connection with
any credit transaction which is not initiated by the
consumer and which consists of a firm offer of credit
shall provide with any written solicitation made to
the consumer regarding the transaction a clear and
conspicuous statement that—
‘‘(A) information contained in the consum-
er’s consumer report was used in connection with
the transaction;
‘‘(B) the consumer received the offer of cred-
it because the consumer satisfied the criteria for
creditworthiness under which the consumer was
selected for the offer;
‘‘(C) if applicable, the credit may not be ex-
tended if, after the consumer responds to the
offer, the consumer does not meet the criteria
used to select the consumer for the offer or any
applicable income or employment criteria or
does not furnish any required collateral;
‘‘(D) the consumer has a right to prohibit
information contained in the consumer’s file
with any consumer reporting agency from being
used in connection with any credit transaction
which is not initiated by the consumer; and
‘‘(E) the consumer may exercise the right
referred to in subparagraph (D) by notifying a
notification system established under section
604(d).
‘‘(2) DISCLOSURE OF ADDRESS AND TELEPHONE
NUMBER.—A statement under paragraph (1) shall in-
clude the address and toll-free telephone number of the
appropriate notification system established under sec-
tion 604(d).
‘‘(3) MAINTAINING CRITERIA ON FILE.—A person
who makes an offer of credit to a consumer under a
credit transaction described in paragraph (1) shall
maintain on file the criteria used to select the
consumer to receive the offer, all income and employ-
ment criteria that are the basis for determining
whether or not to extend credit pursuant to the offer,
and any requirement for the furnishing of collateral
as a condition of the extension of credit, until the end
of the 3-year period beginning on the date on which
the offer is made to the consumer.
‘‘(4) LIMITATION ON APPLICATION.—Paragraph
(1) does not apply to the use of a consumer report by
a person if—
‘‘(A) the person is affiliated by common
ownership or by common corporate control with
the person who procured the report;
‘‘(B) the person who procured the report
clearly and conspicuously disclosed to the
consumer to whom the report relates, before the
report is provided to the person using the report,
that the report might be provided to and used by
other persons who are affiliated in the manner
described in subparagraph (A) to the person who
procured the report; and
‘‘(C) the provision and use of the report
is—
‘‘(i) consented to by the consumer in
writing, or
‘‘(ii) with respect to existing customers,
the consumer has been afforded the oppor-
tunity to direct in writing that the report
may not be provided to or used by persons
who are affiliated in the manner described
in subparagraph (A) and has not done so.’’.
SEC. 112. AMENDMENTS RELATING TO CIVIL LIABILITY.
(a) CIVIL LIABILITY FOR WILLFUL NONCOMPLIANCE,
GENERALLY.—Section 616 of the Fair Credit Reporting Act
(15 U.S.C. 1681n) is amended by striking ‘‘Any consumer
reporting agency or user of information which’’ and insert-
ing ‘‘(a) IN GENERAL.—Any person who’’.
(b) MINIMUM CIVIL LIABILITY FOR WILLFUL NON-
COMPLIANCE.—Section 616(1) of the Fair Credit Reporting
Act (15 U.S.C. 1681n(1)) is amended to read as follows:
‘‘(1)(A) any actual damages sustained by the
consumer as a result of the failure; or
‘‘(B) in the case of liability of a natural person
for obtaining a consumer report under false pretenses
or knowingly without a permissible purpose, such
damages or $1,000, whichever is greater;’’.
(c) CIVIL LIABILITY
FOR NEGLIGENT NONCOMPLI-
ANCE.—Section 617 of the Fair Credit Reporting Act (15
U.S.C. 1681o) is amended by striking ‘‘Any consumer re-
porting agency or user of information which’’ and inserting
‘‘(a) IN GENERAL.—Any person who’’.
(d) ATTORNEY’S FEES.—
(1) WILLFUL NONCOMPLIANCE.—Section 616 of
the Fair Credit Reporting Act (15 U.S.C. 1681n) is
amended by adding at the end the following:
‘‘(b) ATTORNEY’S FEES.—On a finding by the court
that an unsuccessful pleading, motion, or other paper filed
in connection with an action under this section was filed
in bad faith or for purposes of harassment, the court shall
award to the prevailing party attorney’s fees reasonable in
relation to the work expended in responding to the pleading,
motion, or other paper.’’.
(2) NEGLIGENT
NONCOMPLIANCE.—Section 617
of the Fair Credit Reporting Act (15 U.S.C. 1681o)
is amended by adding at the end the following:
‘‘(b) ATTORNEY’S FEES.—On a finding by the court
that an unsuccessful pleading, motion, or other paper filed
in connection with an action under this section was filed
in bad faith or for purposes of harassment, the court shall
award to the prevailing party attorney’s fees reasonable in
relation to the work expended in responding to the pleading,
motion, or other paper.’’.
SEC. 113. AMENDMENTS RELATING TO RESPONSIBILITIES
OF PERSONS WHO FURNISH INFORMATION
TO CONSUMER REPORTING AGENCIES.
(a) IN GENERAL.—The Fair Credit Reporting Act (15
U.S.C. 1681 et seq.) is amended by redesignating section
623 as section 624 and inserting after section 622 the fol-
lowing new section:
‘‘§ 623. Responsibilities of furnishers of information to
consumer reporting agencies
‘‘(a) DUTY OF FURNISHERS OF INFORMATION TO PRO-
VIDE COMPLETE AND ACCURATE INFORMATION.—
‘‘(1) PROHIBITIONS.—
‘‘(A) IN GENERAL.—A person shall not fur-
nish any information to any consumer reporting
agency if the person knows or should have known
the information is incomplete or inaccurate.
‘‘(B) ROUTINE
FURNISHERS.—A person
who regularly and in the ordinary course of
business furnishes information to one or more
consumer reporting agencies about the person’s
transactions or experiences with any consumer,
shall not furnish such information except in
compliance with reasonable procedures which are
designed to avoid violations of this section and
to assure the accuracy of the information.
‘‘(2) DUTY TO CORRECT AND UPDATE INFORMA-
TION.—A person who—
‘‘(A) regularly and in the ordinary course
of business furnishes information to one or more
consumer reporting agencies about the person’s
transactions or experiences with any consumer;
and
‘‘(B) has furnished to a consumer reporting
agency information that the person determines is
not complete or accurate;
shall promptly notify the consumer reporting agency
of that determination and provide to the agency any
corrections to that information, or any additional in-
formation, that is necessary to make the information
provided by the person to the agency complete and ac-
curate, and shall not thereafter furnish to the agency
any of the information that remains not complete or
accurate.
‘‘(3) DUTY TO PROVIDE NOTICE OF DISPUTE.—
If the completeness or accuracy of any information
furnished by any person to any consumer reporting
agency is disputed to such person by a consumer, the
person may not furnish the information to any
consumer reporting agency without notice that such
information is disputed by the consumer.
‘‘(4) DUTY TO PROVIDE NOTICE OF CLOSED AC-
COUNTS.—A person who regularly and in the ordi-
nary course of business furnishes information to a
consumer reporting agency regarding a consumer who
has a credit account with that person shall notify the
agency of the voluntary closure of the account by the
consumer, in information regularly furnished for the
period in which the account is closed.
‘‘(5) DUTY TO PROVIDE NOTICE OF DELINQUENCY
OF ACCOUNTS.—A person who furnishes information
to a consumer reporting agency regarding a delin-
quent account being placed for collection, charged to
profit or loss, or subjected to any similar action shall,
by not later than 90 days after furnishing the infor-
mation, notify the agency of the month and year of
the commencement of the delinquency which imme-
diately preceded the action.
‘‘(b) DUTIES OF FURNISHERS OF INFORMATION UPON
NOTICE OF DISPUTE.—
‘‘(1) IN GENERAL.—After receiving notice pursu-
ant to section 611(a)(2) of a dispute with regard to
the completeness or accuracy of any information pro-
vided by a person to a consumer reporting agency, the
person shall—
‘‘(A) complete an investigation with respect
to the disputed information;
‘‘(B) review all relevant information pro-
vided by the consumer reporting agency pursu-
ant to section 611(a)(2);
‘‘(C) report the results of the investigation
to the consumer reporting agency; and
‘‘(D) if the investigation finds that the in-
formation is incomplete or inaccurate, report
those results to all other consumer reporting
agencies to which the person furnished the infor-
mation.
‘‘(2) DEADLINE.—A person shall complete all in-
vestigations, reviews, and reports required under
paragraph (1) regarding information provided by the
person to a consumer reporting agency, before the end
of the period under section 611(a)(1) within which
the consumer reporting agency is required to complete
actions required by that section regarding that infor-
mation.
‘‘(c) LIMITATION ON LIABILITY.—Sections 616 and
617 do not apply to any failure to comply with subsection
(a)(1), except as provided in section 621(c)(1)(B).’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of the Fair Credit Reporting Act (15 U.S.C.
1681a et seq.) is amended by striking the item relating to
section 623 and inserting the following:
‘‘623. Responsibilities of furnishers of information to consumer reporting agencies.
‘‘624. Relation to State laws.’’.
SEC. 114. INVESTIGATIVE CONSUMER REPORTS.
Section 606 of the Fair Credit Reporting Act (15
U.S.C. 1681d) is amended—
(1) in subsection (a)(1) by striking ‘‘or’’ after the
semicolon at the end and inserting ‘‘and’’;
(2) by striking subsection (a)(2) and inserting
the following:
‘‘(2) the person certifies to the consumer report-
ing agency that—
‘‘(A) the person has made the disclosures to
the consumer required by paragraph (1); and
‘‘(B) the person will comply with subsection
(b).’’;
(3) in subsection (b) by striking ‘‘shall’’ the sec-
ond place it appears; and
(4) by adding at the end the following:
‘‘(d) PROHIBITIONS.—
‘‘(1) CERTIFICATION.—A consumer reporting
agency shall not prepare or furnish an investigative
consumer report unless the agency has received a cer-
tification under subsection (a)(2) from the person who
requested the report.
‘‘(2) INQUIRIES.—A consumer reporting agency
shall not make an inquiry for the purpose of prepar-
ing a consumer report on a consumer if the making
of the inquiry by an employer or prospective em-
ployer of the consumer would violate any applicable
Federal or State equal employment opportunity law
or regulation.
‘‘(3) 
PUBLIC
RECORD
INFORMATION.—A
consumer reporting agency shall not furnish an inves-
tigative consumer report which includes information
which is a matter of public record unless the agency
has verified the accuracy of the information within
the 30-day period ending on the date the report is
furnished.
‘‘(4) 
CERTAIN
ADVERSE
INFORMATION.—A
consumer reporting agency shall not prepare or fur-
nish an investigative consumer report on a consumer
that contains information that is adverse to the inter-
est of the consumer and that is obtained through a
personal interview with a neighbor, friend, or associ-
ate of the consumer or with another person with
whom the consumer is acquainted or who has knowl-
edge of such item of information, unless—
‘‘(A) the agency has followed reasonable pro-
cedures to obtain confirmation of the informa-
tion, from an additional source that has inde-
pendent and direct knowledge of the information;
or
‘‘(B) the person interviewed is the best pos-
sible source of the information.’’.
SEC. 115. INCREASED CRIMINAL PENALTIES FOR OBTAIN-
ING 
INFORMATION 
UNDER 
FALSE 
PRE-
TENSES.
(a) OBTAINING INFORMATION UNDER FALSE PRE-
TENSES.—Section 619 of the Fair Credit Reporting Act (15
U.S.C. 1681q) is amended by striking ‘‘fined not more than
$5,000 or imprisoned not more than one year, or both’’ and
inserting ‘‘fined under title 18, United States Code, impris-
oned for not more than 2 years, or both’’.
(b) UNAUTHORIZED DISCLOSURES BY OFFICERS OR
EMPLOYEES.—Section 620 of the Fair Credit Reporting Act
(15 U.S.C. 1681r) is amended by striking ‘‘fined not more
than $5,000 or imprisoned not more than one year, or both’’
and inserting ‘‘fined under title 18, United States Code,
imprisoned for not more than 2 years, or both’’.
SEC. 116. ADMINISTRATIVE ENFORCEMENT.
(a) AVAILABLE ENFORCEMENT POWERS.—The 2d sen-
tence of section 621(a) of the Fair Credit Reporting Act
(15 U.S.C. 1681s(a)) is amended—
(1) by striking ‘‘Act and shall be subject to en-
forcement by the Federal Trade Commission under
section 5(b) thereof with respect to any consumer re-
porting agency or person subject to enforcement by the
Federal Trade Commission pursuant to this sub-
section, irrespective’’ and inserting ‘‘Act. All functions
and powers of the Federal Trade Commission under
the Federal Trade Commission Act shall be available
to the Commission to enforce compliance with this
title by any person subject to enforcement by the Fed-
eral Trade Commission pursuant to this subsection
and not subject to enforcement pursuant to section 8
of the Federal Deposit Insurance Act, irrespective’’;
and
(2) by inserting ‘‘, including the power to enforce
the provisions of this title in the same manner as if
the violation had been a violation of any Federal
Trade Commission trade regulation rule’’ before the
period.
(b) AGENCIES RESPONSIBLE FOR ENFORCEMENT.—
Section 621 of the Fair Credit Reporting Act (15 U.S.C.
1681s) is amended—
(1) in subsection (a), by inserting ‘‘ENFORCE-
MENT
BY FEDERAL TRADE COMMISSION.—’’ before
‘‘Compliance with the requirements’’; and
(2) in subsection (b), by striking the matter pre-
ceding paragraph (1) and inserting the following:
‘‘(b) ENFORCEMENT BY OTHER AGENCIES.—Compli-
ance with the requirements imposed under this title with
respect to consumer reporting agencies, persons who use
consumer reports from such agencies, and persons who
furnish information to such agencies shall be enforced
under—’’.
SEC. 117. STATE ENFORCEMENT OF FAIR CREDIT REPORT-
ING ACT.
Section 621 of the Fair Credit Reporting Act (15
U.S.C. 1681s) is amended by redesignating subsection (c)
as subsection (d) and inserting after subsection (b) the fol-
lowing new subsection:
‘‘(c) STATE ACTION FOR VIOLATIONS.—
‘‘(1) AUTHORITY
OF
STATES.—In addition to
such other remedies as are provided under State law,
whenever the chief law enforcement officer of a State,
or an official or agency designated by a State, has
reason to believe that any person has violated or is
violating this title, the State—
‘‘(A) may bring an action to enjoin such
violation in any appropriate United States dis-
trict court or in any other court of competent ju-
risdiction;
‘‘(B) may bring an action on behalf of its
residents to recover—
‘‘(i) damages for which the person is
liable to such residents under sections 616
and 617 as a result of the violation;
‘‘(ii) in the case of a violation of sec-
tion 623(a)(1), damages for which the per-
son would, but for section 623(c), be liable
to such residents as a result of the violation;
or
‘‘(iii) damages of not more than $1,000
for each willful or negligent violation; and
‘‘(C) in the case of any successful action
under subparagraph (A) or (B), shall be award-
ed the costs of the action and reasonable attorney
fees as determined by the court.
‘‘(2) RIGHTS OF COMMISSION.—The State shall
serve prior written notice of any such action upon the
Federal Trade Commission or the appropriate Fed-
eral regulator determined under subsection (b) and
provide the Commission or appropriate Federal regu-
lator with a copy of its complaint, except in any case
where such prior notice is not feasible, in which case
the State shall serve such notice immediately upon in-
stituting such action. The Commission or appropriate
Federal regulator shall have the right (A) to intervene
in the action, (B) upon so intervening, to be heard on
all matters arising therein, and (C) to file petitions
for appeal.
‘‘(3) INVESTIGATORY POWERS.—For purposes of
bringing any action under this subsection, nothing in
this subsection shall prevent the chief law enforcement
officer, or an official or agency designated by a State,
from exercising the powers conferred on the chief law
enforcement officer or such official by the laws of such
State to conduct investigations or to administer oaths
or affirmations or to compel the attendance of wit-
nesses or the production of documentary and other
evidence.
‘‘(4) LIMITATION.—Whenever the Federal Trade
Commission or the appropriate Federal regulator has
instituted a civil action for violation of this title, no
State may, during the pendency of such action, bring
an action under this section against any defendant
named in the complaint of the Commission or the ap-
propriate Federal regulator for any violation of this
title that is alleged in that complaint.’’.
SEC. 118. FEDERAL RESERVE BOARD AUTHORITY.
Section 621 of the Fair Credit Reporting Act (15
U.S.C. 1681s), is further amended by adding after sub-
section (d) (as redesignated by section 117) the following
new subsection:
‘‘(e) INTERPRETIVE AUTHORITY.—The Federal Reserve
Board may issue interpretations of any provision of this
title as it may apply to any persons identified under sub-
section (b) (1), (2), and (3), or to the holding companies
and affiliates of such persons, in consultation with Federal
agencies identified in subsection (b) (1), (2), and (3).’’.
SEC. 119. ESTABLISHMENT OF TOLL-FREE TELEPHONE
NUMBER.
Section 607 of the Fair Credit Reporting Act (15
U.S.C. 1681e) is amended by adding after subsection (e)
(as added by section 107(c) of this Act) the following new
subsection:
‘‘(f) ESTABLISHMENT
OF TOLL-FREE TELEPHONE
NUMBER.—Each consumer reporting agency that compiles
and maintains files on consumers on a nationwide basis
shall establish (and thereafter maintain) a toll-free tele-
phone number for the purpose of making agency personnel
accessible to consumers for communicating with the agen-
cy.’’.
SEC. 120. PREEMPTION OF STATE LAW.
Section 624 of the Fair Credit Reporting Act, as redes-
ignated by section 113(a) of this Act, is further amended—
(1) by striking ‘‘This title’’ and inserting ‘‘(a) IN
GENERAL.—Except as provided in subsection (b), this
title’’; and
(2) by adding at the end the following:
‘‘(b) EXCEPTIONS.—No requirement or prohibition
may be imposed under the laws of any State—
‘‘(1) with respect to any subject matter regulated
under—
‘‘(A) 
section 
604(d), 
relating 
to 
the
prescreening of consumer reports;
‘‘(B) section 611, relating to the time by
which a consumer reporting agency must take
any action, including the provision of notifica-
tion to a consumer or other person, in any pro-
cedure related to the disputed accuracy of infor-
mation in a consumer’s file;
‘‘(C) section 615(a), relating to the duties of
a person who takes any adverse action with re-
spect to a consumer on the basis of information
contained in a consumer report;
‘‘(D) section 615(d), relating to the duties of
persons who use a consumer report of a
consumer in connection with any credit trans-
action which is not initiated by the consumer
and which consists of a firm offer of credit; or
‘‘(E) section 605, relating to obsolete infor-
mation;
‘‘(2) with respect to the exchange of information
among persons affiliated by common ownership or
common corporate control; or
‘‘(3) with respect to the form and content of any
disclosure required to be made under section 609(c);
except that this subsection does not affect the applicability
of any State law in effect on the date of the enactment of
the Consumer Reporting Reform Act of 1994, or any settle-
ment, agreement, or consent judgment between any State
attorney general and any consumer reporting agency in ef-
fect on the date of enactment of the Consumer Reporting
Reform Act of 1994.’’.
SEC. 121. ACTION BY FTC.
(a) MODIFICATION OF REQUIREMENTS BY FTC AU-
THORIZED.—
(1) IN GENERAL.—Section 621 of the Fair Credit
Reporting Act (15 U.S.C. 1681s), is further amended
by adding after subsection (e) (as added by section
118 of this Act) the following:
‘‘(f) MODIFICATION OF REQUIREMENTS BY FTC AU-
THORIZED.—If it considers such action necessary for the
protection of consumers, the Federal Trade Commission
may, after consultation with each Federal agency referred
to in section 621(b) and with appropriate State regulatory
and law enforcement agencies, promulgate regulations in
accordance with section 553 of title 5, United States Code,
to impose requirements—
‘‘(1) that are more stringent than those imposed
under—
‘‘(A) section 611, relating to the time by
which a consumer reporting agency must take
any action, including the provision of notifica-
tion to a consumer or other person, in any pro-
cedure related to the disputed accuracy of infor-
mation in a consumer’s file;
‘‘(B) section 615(a), relating to the duties of
a person who takes any adverse action with re-
spect to a consumer on the basis of information
contained in a consumer report; or
‘‘(C) section 615(d), relating to the duties of
persons who use a consumer report on a
consumer in connection with any credit trans-
action which is not initiated by the consumer
and that consists of a firm offer of credit; and
‘‘(2) with respect to the form and content of any
disclosure required to be made under section 609(c).’’.
(2) CLERICAL AMENDMENTS.—
(A) The heading for section 621 of the Fair
Credit Reporting Act (15 U.S.C. 1681s) is
amended to read as follows:
‘‘§ 621. Administrative enforcement and authorities;
State actions’’.
(B) The table of contents at the beginning
of the Fair Credit Reporting Act is amended by
striking the item relating to section 621 and in-
serting the following:
‘‘621. Administrative enforcement and authorities; State actions.’’.
(b) DEADLINE TO PRESCRIBE MATTERS.—The Federal
Trade Commission shall prescribe all matters required by
this title (including the amendments made by this title) to
be prescribed by that Commission, before the end of the 300-
day period beginning on the date of the enactment of this
Act.
SEC. 122. EFFECTIVE DATES OF AMENDMENTS.
(a) IN GENERAL.—Except as provided in subsection
(b), the amendments made by this title shall be effective
after the 455-day period beginning on the date of the enact-
ment of this Act.
(b) EXCEPTIONS.—
(1) NOTIFICATION SYSTEM.—Section 604(d)(3) of
the Fair Credit Reporting Act, as amended by section
104(a), shall be effective after the 365-day period be-
ginning on the date of the enactment of this Act.
(2) FTC AUTHORITY.—Subsection (a) shall not
affect the authority of the Federal Trade Commission
to prescribe matters under the amendments made by
this title.
SEC. 123. FURNISHING CONSUMER REPORTS TO FEDERAL
BUREAU OF INVESTIGATION FOR COUNTER-
INTELLIGENCE PURPOSES.
(a) PERMISSIBLE PURPOSE.—Section 604 of the Fair
Credit Reporting Act (15 U.S.C. 1681b) is amended in sub-
section (a) (as designated by section 103(a)(1) of this Act)
by adding at the end the following:
‘‘(4) To the Federal Bureau of Investigation in re-
sponse to a court order issued under section 625.’’.
(b) REQUIREMENTS FOR FEDERAL BUREAU OF INVES-
TIGATION TO OBTAIN AND USE CONSUMER REPORTS.—
(1) IN GENERAL.—The Fair Credit Reporting
Act (15 U.S.C. 1601 et seq.) is amended by adding
at the end the following new section:
‘‘§ 625. Requirements for Federal Bureau of Investiga-
tion to obtain and use consumer reports
‘‘(a) COURT ORDER.—If requested in writing by the
Director of the Federal Bureau of Investigation or a des-
ignee of the Director, a court may issue an order ex parte
directing a consumer reporting agency to furnish a
consumer report to the Federal Bureau of Investigation,
upon a showing in camera that—
‘‘(1) the consumer report is necessary for the con-
duct of an authorized foreign counterintelligence in-
vestigation; and
‘‘(2) there are specific and articulable facts giv-
ing reason to believe that the consumer whose
consumer report is sought—
‘‘(A) is an agent of a foreign power; and
‘‘(B) is engaging or has engaged in inter-
national terrorism (as that term is defined in
section 101(c) of the Foreign Intelligence Surveil-
lance Act of 1978 (50 U.S.C. 1801(c))) or clan-
destine intelligence activities that involve or may
involve a violation of criminal statutes of the
United States.
‘‘(b) USE
OF CONSUMER REPORTS PROCURED
BY
FEDERAL BUREAU OF INVESTIGATION.—
‘‘(1) LIMITATION ON USE AND FURNISHING OF
CONSUMER REPORTS BY FBI.—The Federal Bureau of
Investigation—
‘‘(A) shall not use a consumer report pro-
cured under section 604(a)(4) for any purpose
other than the investigation for which the
consumer report was procured; and
‘‘(B) shall not furnish the consumer report
or any information obtained from the consumer
report to any other person, except to an officer
or employee of the Department of Justice as nec-
essary for approval or conduct of the investiga-
tion.
‘‘(2) LIMITATION ON FURTHER DISSEMINATION
BY DEPARTMENT OF JUSTICE.—An officer or employee
of the Department of Justice shall not provide a
consumer report or information obtained from a
consumer report to any person except for purposes of
the investigation for which the consumer report was
procured under section 604(a)(4).
‘‘(3) NOTIFICATION REGARDING COMPLETION OF
INVESTIGATION.—The Federal Bureau of Investiga-
tion, within 6 months after the completion of an in-
vestigation for which a consumer report is procured
under section 604(a)(4), shall notify the consumer re-
porting agency that furnished the report that the in-
vestigation is completed.
‘‘(4) FURNISHING
INFORMATION
PURSUANT
TO
SUBPOENA, COURT ORDER, OR ENFORCEMENT PRO-
CEEDING NOT PROHIBITED.—Nothing in paragraph
(1) or (2) shall be construed to prohibit the furnishing
of information pursuant to a subpoena or court order,
or in connection with a court proceeding to enforce
this title.
‘‘(c) PROHIBITIONS ON DISCLOSURE.—
‘‘(1) COURT OFFICER OR EMPLOYEE.—An officer
or employee of a court shall not disclose to any person
that the Federal Bureau of Investigation has sought
or obtained a consumer report under section
604(a)(4), except to the court or another officer or em-
ployee of the court in connection with the issuance of
an order under subsection (a) with respect to the re-
port.
‘‘(2) CONSUMER REPORTING AGENCY OFFICER OR
EMPLOYEE.—An officer or employee of a consumer re-
porting agency shall not disclose to any person that
the Federal Bureau of Investigation has sought or ob-
tained a consumer report under section 604(a)(4), ex-
cept—
‘‘(A) for the purpose of furnishing the report
to the Federal Bureau of Investigation; or
‘‘(B) to the court or an officer or employee
of the court in connection with the issuance of an
order under subsection (a) with respect to the re-
port.
‘‘(3) PENALTY.—A person that knowingly and
willfully violates paragraph (1) or (2) shall be fined
under title 18, United States Code, or imprisoned not
more than 2 years, or both.
‘‘(d) DISCLOSURE TO CONSUMER.—
‘‘(1) NOTICE OF COMPLETION OF INVESTIGATION
REQUIRED.—Notwithstanding section 609(a)(3) and
subject to paragraph (2), a consumer reporting agen-
cy shall not disclose under that section the identity of
the Federal Bureau of Investigation or that the agen-
cy has furnished a consumer report to the Federal
Bureau of Investigation, unless the consumer report-
ing agency has received from the Federal Bureau of
Investigation a notice under subsection (b)(3) of the
completion of the investigation with respect to which
the report was furnished.
‘‘(2) DISCLOSURES REQUIRED.—A consumer re-
porting agency shall include with a disclosure to a
consumer under section 609(a) information in its files
on the consumer regarding the furnishing of a
consumer report to, or the making of any inquiry by,
the Federal Bureau of Investigation with respect to
an investigation for which the consumer reporting
agency received from the Federal Bureau of Investiga-
tion a notice of completion of the investigation in the
year preceding the request from the consumer for the
disclosure.
‘‘(e) CIVIL LIABILITY FOR VIOLATIONS.—For each vio-
lation of subsection (b) (1) or (2) with respect to a consumer
report on a consumer, the Federal Bureau of Investigation
or the Department of Justice, respectively, is liable to the
consumer for an amount equal to the sum of—
‘‘(1) the greater of—
‘‘(A) actual damages sustained by the
consumer as a result of the violation and such
amount of punitive damages as the court may
allow; or
‘‘(B) $500; plus
‘‘(2) in a successful action to enforce any liabil-
ity under this section, the costs of the action and rea-
sonable attorneys’ fees as determined by the court.
‘‘(f) INJUNCTIVE RELIEF.—Any person may bring an
action to enjoin a violation of this section.
‘‘(g) EXCLUSIVE REMEDIES.—No action for relief for
a violation of subsection (b) (1) or (2) may be brought ex-
cept under subsection (e) or (f).
‘‘(h) SEMIANNUAL REPORTS.—The Attorney General
shall, on a semiannual basis, fully inform the Permanent
Select Committee on Intelligence and the Committee on
Banking, Finance and Urban Affairs of the House of Rep-
resentatives and the Select Committee on Intelligence and
the Committee on Banking, Housing, and Urban Affairs
of the Senate concerning all requests made by the Director
of the Federal Bureau of Investigation or a designee of the
Director for a court to issue an order under this section
directing a consumer reporting agency to furnish a
consumer report to the Federal Bureau of Investigation.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of the Fair Credit Reporting
Act (15 U.S.C. 1681a et seq.), as amended by section
113(b) of this Act, is further amended by adding at
the end the following:
‘‘625. Requirements for Federal Bureau of Investigation to obtain and use
consumer reports.’’.
(c) REPEAL OF PROVISIONS.—
(1) REPEAL.—The following provisions of the
Fair Credit Reporting Act, as amended by this sec-
tion, are repealed:
(A) Section 604(a)(4).
(B) Section 625.
(C) In the table of contents at the beginning
of the Fair Credit Reporting Act, the item relat-
ing to section 625.
(2) EFFECTIVE DATE.—Paragraph (1) shall take
effect on the date that is 5 years after the date of the
enactment of this Act.
TITLE II—CREDIT REPAIR
ORGANIZATIONS
SEC. 201. REGULATION OF CREDIT REPAIR ORGANIZA-
TIONS.
Title IV of the Consumer Credit Protection Act is
amended to read as follows:
‘‘TITLE IV—CREDIT REPAIR
ORGANIZATIONS
‘‘Sec.
‘‘401. Short title.
‘‘402. Findings and purposes.
‘‘403. Definitions.
‘‘404. Prohibited practices.
‘‘405. Disclosures.
‘‘406. Credit repair organizations contracts.
‘‘407. Right to cancel contract.
‘‘408. Noncompliance with this title.
‘‘409. Civil liability.
‘‘410. Administrative enforcement.
‘‘411. Statute of limitations.
‘‘412. Relation to State law.
‘‘413. Effective date.
‘‘SEC. 401. SHORT TITLE.
‘‘This title may be cited as the ‘Credit Repair Organi-
zations Act’.
‘‘SEC. 402. FINDINGS AND PURPOSES.
‘‘(a) FINDINGS.—The Congress makes the following
findings:
‘‘(1) Consumers have a vital interest in establish-
ing and maintaining their creditworthiness and cred-
it standing in order to obtain and use credit. As a
result, consumers who have experienced credit prob-
lems may seek assistance from credit repair organiza-
tions which offer to improve the credit standing of
such consumers.
‘‘(2) Certain advertising and business practices
of some companies engaged in the business of credit
repair services have worked a financial hardship
upon consumers, particularly those of limited eco-
nomic means and who are inexperienced in credit
matters.
‘‘(b) PURPOSES.—The purposes of this title are as fol-
lows:
‘‘(1) To ensure that prospective buyers of the
services of credit repair organizations are provided
with the information necessary to make an informed
decision regarding the purchase of such services.
‘‘(2) To protect the public from unfair or decep-
tive advertising and business practices by credit re-
pair organizations.
‘‘SEC. 403. DEFINITIONS.
‘‘For purposes of this title—
‘‘(1) CONSUMER.—The term ‘consumer’ means
an individual.
‘‘(2) CONSUMER
CREDIT
TRANSACTION.—The
term ‘consumer credit transaction’ means any trans-
action in which credit is offered or extended to an in-
dividual for personal, family, or household purposes.
‘‘(3) CREDIT REPAIR ORGANIZATION.—The term
‘credit repair organization’—
‘‘(A) means any person who uses any in-
strumentality of interstate commerce or the
mails to sell, provide, or perform (or represent
that such person can or will sell, provide, or per-
form) any service, in return for the payment of
money or other valuable consideration, for the
express or implied purpose of—
‘‘(i) improving any consumer’s credit
record, credit history, or credit rating; or
‘‘(ii) providing advice or assistance to
any consumer with regard to any activity
or service described in clause (i); and
‘‘(B) does not include—
‘‘(i) any nonprofit organization which
is exempt from taxation under section
501(c)(3) of the Internal Revenue Code of
1986; or
‘‘(ii) any attorney-at-law who is a
member of the bar of the highest court of
any State or otherwise licensed under the
laws of any State, with respect to services
rendered which are within the scope of regu-
lations applicable to members of such bar or
such licensees.
‘‘(4) CREDIT.—The term ‘credit’ has the mean-
ing given to such term in section 103(e) of this Act.
‘‘SEC. 404. PROHIBITED PRACTICES.
‘‘(a) IN GENERAL.—No person may—
‘‘(1) make any statement, or counsel or advise
any consumer to make any statement, which is un-
true or misleading (or which, upon the exercise of rea-
sonable care, should be known by the credit repair or-
ganization, officer, employee, agent, or other person to
be untrue or misleading) with respect to any consum-
er’s creditworthiness, credit standing, or credit capac-
ity to—
‘‘(A) any consumer reporting agency (as de-
fined in section 603(f) of this Act); or
‘‘(B) any person—
‘‘(i) who has extended credit to the
consumer; or
‘‘(ii) to whom the consumer has ap-
plied or is applying for an extension of
credit;
‘‘(2) make any statement, or counsel or advise
any consumer to make any statement, the intended ef-
fect of which is to alter the consumer’s identification
to prevent the display of the consumer’s credit record,
history, or rating for the purpose of concealing ad-
verse information that is accurate and not obsolete
to—
‘‘(A) any consumer reporting agency;
‘‘(B) any person—
‘‘(i) who has extended credit to the
consumer; or
‘‘(ii) to whom the consumer has ap-
plied or is applying for an extension of
credit;
‘‘(3) make or use any untrue or misleading rep-
resentation of the services of the credit repair organi-
zation; or
‘‘(4) engage, directly or indirectly, in any act,
practice, or course of business that constitutes or re-
sults in the commission of, or an attempt to commit,
a fraud or deception on any person in connection
with the offer or sale of the services of the credit re-
pair organization.
‘‘(b) PAYMENT IN ADVANCE.—No credit repair organi-
zation may charge or receive any money or other valuable
consideration for the performance of any service which the
credit repair organization has agreed to perform for any
consumer before such service is fully performed.
‘‘SEC. 405. DISCLOSURES.
‘‘(a) DISCLOSURE REQUIRED.—Any credit repair or-
ganization shall provide any consumer with the following
written statement before any contract or agreement between
the consumer and the credit repair organization is executed:
‘‘ ‘Consumer Credit File Rights
Under State and Federal Law
‘‘ ‘You have a right to dispute inaccurate information
in your credit report by contacting the credit bureau di-
rectly. However, neither you nor any ‘‘credit repair’’ com-
pany or credit repair organization has the right to have
accurate, current, and verifiable information removed from
your credit report. The credit bureau must remove accurate,
negative information from your report only if it is over 7
years old. Bankruptcy information can be reported for 10
years.
‘‘ ‘You have a right to obtain a copy of your credit
report from a credit bureau. You may be charged a reason-
able fee. There is no fee, however, if you have been turned
down for credit, employment, insurance, or a rental dwell-
ing because of information in your credit report within the
preceding 60 days. The credit bureau must provide someone
to help you interpret the information in your credit file.
A copy of your credit report is available to you at no charge
once a year upon request.
‘‘ ‘You have a right to sue a credit repair organization
that violates the Credit Repair Organization Act. This law
prohibits deceptive practices by credit repair organizations.
‘‘ ‘You have the right to cancel your contract with any
credit repair organization for any reason within 3 business
days from the date you signed it.
‘‘ ‘Credit bureaus are required to follow reasonable pro-
cedures to ensure that the information they report is accu-
rate. However, mistakes may occur.
‘‘ ‘You may, on your own, notify a credit bureau in
writing that you dispute the accuracy of information in
your credit file. The credit bureau must then reinvestigate
and modify or remove inaccurate or incomplete informa-
tion. The credit bureau may not charge any fee for this
service. Any pertinent information and copies of all docu-
ments you have concerning an error should be given to the
credit bureau.
‘‘ ‘If the credit bureau’s reinvestigation does not resolve
the dispute to your satisfaction, you may send a brief state-
ment to the credit bureau, to be kept in your file, explaining
why you think the record is inaccurate. The credit bureau
must include a summary of your statement about disputed
information with any report it issues about you.
‘‘ ‘The Federal Trade Commission regulates credit bu-
reaus and credit repair organizations. For more informa-
tion contact:
The Public Reference Branch
Federal Trade Commission
Washington, D.C. 20580’.
‘‘(b) SEPARATE
STATEMENT
REQUIREMENT.—The
written statement required under this section shall be pro-
vided as a document which is separate from any written
contract or other agreement between the credit repair orga-
nization and the consumer or any other written material
provided to the consumer.
‘‘(c) RETENTION OF COMPLIANCE RECORDS.—
‘‘(1) IN GENERAL.—The credit repair organiza-
tion shall maintain a copy of the statement signed by
the consumer acknowledging receipt of the statement.
‘‘(2) MAINTENANCE FOR 2 YEARS.—The copy of
any consumer’s statement shall be maintained in the
organization’s files for 2 years after the date on which
the statement is signed by the consumer.
‘‘SEC. 406. CREDIT REPAIR ORGANIZATIONS CONTRACTS.
‘‘(a) WRITTEN CONTRACTS REQUIRED.—No services
may be provided by any credit repair organization for any
consumer—
‘‘(1) unless a written and dated contract (for the
purchase of such services) which meets the require-
ments of subsection (b) has been signed by the
consumer; or
‘‘(2) before the end of the 3-business-day period
beginning on the date the contract is signed.
‘‘(b) TERMS AND CONDITIONS OF CONTRACT.—No con-
tract referred to in subsection (a) meets the requirements
of this subsection unless such contract includes the following
information (in writing):
‘‘(1) The terms and conditions of payment, in-
cluding the total amount of all payments to be made
by the consumer to the credit repair organization or
to any other person.
‘‘(2) A full and detailed description of the serv-
ices to be performed by the credit repair organization
for the consumer, including—
‘‘(A) all guarantees of performance; and
‘‘(B) an estimate of—
‘‘(i) the date by which the performance
of the services (to be performed by the credit
repair organization or any other person)
will be complete; or
‘‘(ii) the length of the period necessary
to perform such services.
‘‘(3) The credit repair organization’s name and
principal business address.
‘‘(4) A conspicuous statement in bold face type,
in immediate proximity to the space reserved for the
consumer’s signature on the contract, which reads as
follows: ‘You may cancel this contract without pen-
alty or obligation at any time before midnight of the
3rd business day after the date on which you signed
the contract. See the attached notice of cancellation
form for an explanation of this right.’.
‘‘SEC. 407. RIGHT TO CANCEL CONTRACT.
‘‘(a) IN GENERAL.—Any consumer may cancel any
contract with any credit repair organization without pen-
alty or obligation by notifying the credit repair organiza-
tion of the consumer’s intention to do so at any time before
midnight of the 3rd business day which begins after the date
on which the contract or agreement between the consumer
and the credit repair organization is executed or would, but
for this subsection, become enforceable against the parties.
‘‘(b) CANCELLATION FORM
AND OTHER INFORMA-
TION.—Each contract shall be accompanied by a form, in
duplicate, which has the heading ‘Notice of Cancellation’
and contains in bold face type the following statement:
‘‘ ‘You may cancel this contract, without any
penalty or obligation, at any time before midnight of
the 3rd day which begins after the date the contract
is signed by you.
‘‘ ‘To cancel this contract, mail or deliver a
signed, dated copy of this cancellation notice, or any
other written notice to [ name of credit repair
organization ] 
at 
[ address 
of 
credit 
repair
organization ] before midnight on [ date ]
‘‘ ‘I hereby cancel this transaction,
[ date ]
[ purchaser’s signature ].’.
‘‘(c) CONSUMER COPY OF CONTRACT REQUIRED.—Any
consumer who enters into any contract with any credit re-
pair organization shall be given, by the organization—
‘‘(1) a copy of the completed contract and the
disclosure statement required under section 405; and
‘‘(2) a copy of any other document the credit re-
pair organization requires the consumer to sign,
at the time the contract or the other document is signed.
‘‘SEC. 408. NONCOMPLIANCE WITH THIS TITLE.
‘‘(a) CONSUMER WAIVERS INVALID.—Any waiver by
any consumer of any protection provided by or any right
of the consumer under this title—
‘‘(1) shall be treated as void; and
‘‘(2) may not be enforced by any Federal or
State court or any other person.
‘‘(b) ATTEMPT TO OBTAIN WAIVER.—Any attempt by
any person to obtain a waiver from any consumer of any
protection provided by or any right of the consumer under
this title shall be treated as a violation of this title.
‘‘(c) CONTRACTS NOT IN COMPLIANCE.—Any contract
for services which does not comply with the applicable pro-
visions of this title—
‘‘(1) shall be treated as void; and
‘‘(2) may not be enforced by any Federal or
State court or any other person.
‘‘SEC. 409. CIVIL LIABILITY.
‘‘(a) LIABILITY ESTABLISHED.—Any person who fails
to comply with any provision of this title with respect to
any other person shall be liable to such person in an
amount equal to the sum of the amounts determined under
each of the following paragraphs:
‘‘(1) ACTUAL DAMAGES.—The greater of—
‘‘(A) the amount of any actual damage sus-
tained by such person as a result of such failure;
or
‘‘(B) any amount paid by the person to the
credit repair organization.
‘‘(2) PUNITIVE DAMAGES.—
‘‘(A) INDIVIDUAL ACTIONS.—In the case of
any action by an individual, such additional
amount as the court may allow.
‘‘(B) CLASS
ACTIONS.—In the case of a
class action, the sum of—
‘‘(i) the aggregate of the amount which
the court may allow for each named plain-
tiff; and
‘‘(ii) the aggregate of the amount which
the court may allow for each other class
member, without regard to any minimum
individual recovery.
‘‘(3) ATTORNEYS’ FEES.—In the case of any suc-
cessful action to enforce any liability under para-
graph (1) or (2), the costs of the action, together with
reasonable attorneys’ fees.
‘‘(b) FACTORS TO BE CONSIDERED IN AWARDING PU-
NITIVE DAMAGES.—In determining the amount of any li-
ability of any credit repair organization under subsection
(a)(2), the court shall consider, among other relevant fac-
tors—
‘‘(1) the frequency and persistence of noncompli-
ance by the credit repair organization;
‘‘(2) the nature of the noncompliance;
‘‘(3) the extent to which such noncompliance was
intentional; and
‘‘(4) in the case of any class action, the number
of consumers adversely affected.
‘‘SEC. 410. ADMINISTRATIVE ENFORCEMENT.
‘‘(a) IN GENERAL.—Compliance with the requirements
imposed under this title with respect to credit repair orga-
nizations shall be enforced under the Federal Trade Com-
mission Act by the Federal Trade Commission.
‘‘(b) VIOLATIONS OF THIS TITLE TREATED AS VIOLA-
TIONS OF FEDERAL TRADE COMMISSION ACT.—
‘‘(1) IN GENERAL.—For the purpose of the exer-
cise by the Federal Trade Commission of the Commis-
sion’s functions and powers under the Federal Trade
Commission Act, any violation of any requirement or
prohibition imposed under this title with respect to
credit repair organizations shall constitute an unfair
or deceptive act or practice in commerce in violation
of section 5(a) of the Federal Trade Commission Act.
‘‘(2) ENFORCEMENT AUTHORITY UNDER OTHER
LAW.—All functions and powers of the Federal Trade
Commission under the Federal Trade Commission Act
shall be available to the Commission to enforce com-
pliance with this title by any person subject to en-
forcement by the Federal Trade Commission pursuant
to this subsection, including the power to enforce the
provisions of this title in the same manner as if the
violation had been a violation of any Federal Trade
Commission trade regulation rule, without regard to
whether the credit repair organization—
‘‘(A) is engaged in commerce; or
‘‘(B) meets any other jurisdictional tests in
the Federal Trade Commission Act.
‘‘(c) STATE ACTION FOR VIOLATIONS.—
‘‘(1) AUTHORITY
OF
STATES.—In addition to
such other remedies as are provided under State law,
whenever the chief law enforcement officer of a State,
or an official or agency designated by a State, has
reason to believe that any person has violated or is
violating this title, the State—
‘‘(A) may bring an action to enjoin such
violation;
‘‘(B) may bring an action on behalf of its
residents to recover damages for which the person