I 
108TH CONGRESS 
1ST SESSION H. R. 2796
To amend the Fair Credit Reporting Act to prohibit the use of consumer 
credit history for any insurance purpose and to require the disclosure 
of consumer reports and the credit scoring procedure in order to prevent 
inaccuracies and mistakes in consumer credit reports, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 18, 2003
Mr. THOMPSON of Mississippi introduced the following bill; which was referred 
to the Committee on Financial Services 
A BILL 
To amend the Fair Credit Reporting Act to prohibit the 
use of consumer credit history for any insurance purpose 
and to require the disclosure of consumer reports and 
the credit scoring procedure in order to prevent inaccura-
cies and mistakes in consumer credit reports, and for 
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Consumer Credit Pro-
tection Act Amendments of 2003’’.
SEC. 2. FINDINGS. 
Section 602(a) Fair Credit Reporting Act (15 U.S.C. 
1681) is amended—
(1) by redesignating paragraph (4) as para-
graph (6); 
(2) by striking paragraphs (2) and (3) and in-
serting the following new paragraphs: 
‘‘(2) Consumer credit reporting agencies have 
assumed a dominant role in evaluating consumer 
credit and other information on consumers. 
‘‘(3) Credit reports may report on as factors to 
establish a consumer’s eligibility for credit, insur-
ance, and even employment. 
‘‘(4) The automated calculation of credit scores 
has become the primary way of quickly evaluating all 
of the subjective factors taken into account in deter-
mining a consumer’s creditworthiness, credit stand-
ing, credit capacity, debts, character, general reputa-
tion, or mode of living. 
‘‘(5) When a credit reporting agency undertakes 
a business that has the potential to profoundly affect 
a consumer’s life, it is incumbent that these agencies 
ensure that the information provided is accurate.’’; 
and
(3) by inserting after paragraph (6) (as so re-
designated by paragraph 1 of this section) the fol-
lowing new paragraph: 
‘‘(7) Due to the inequality of the rates of prop-
erty and casualty insurance, many State insurance 
commissioners have concurred that prohibiting the 
use of credit history and credit scores for personal 
lines of insurance and improving the disclosure of 
credit information will provide greater protection for 
the consumer.’’. 
SEC. 3. DEFINITIONS. 
(a) NEW DEFINITIONS.—Section 603 of the Fair 
Credit Reporting Act (15 U.S.C. 1681a) is amended by 
adding at the end the following new subsection: 
‘‘(q) CREDIT SCORE, RISK PREDICTOR, AND RISK 
SCORE.—The terms ‘credit score’, ‘risk predictor’, and 
‘risk score’ mean the numerical value or categorization de-
rived from a statistical tool or modeling system used to 
predict the likelihood of certain credit behaviors, including 
default.’’. 
(b) AMENDMENTS TO EXISTING DEFINITIONS.—Sub-
section (m) of section 603 of the Fair Credit Reporting 
Act (15 U.S.C. 1681a(m)) is amended to read as follows: 
‘‘(m) CREDIT TRANSACTION THAT IS NOT INITI-
ATED BY THE CONSUMER.—The term ‘credit transaction
that is not initiated by the consumer’ does not include the 
use of a consumer report by a person with whom the con-
sumer has a credit account for purposes of—
‘‘(1) reviewing the account; or 
‘‘(2) collecting the account.’’. 
SEC. 4. IMPERMISSIBLE USES OF CREDIT SCORES IN CON-
SUMER INSURANCE DETERMINATIONS; COM-
PLIANCE WITH EQUAL CREDIT OPPORTUNITY 
ACT. 
(a) IN GENERAL.—Section 604 of the Fair Credit 
Reporting Act (15 U.S.C. 1681b) is amended by adding 
at the end the following new subsections: 
‘‘(h) IMPERMISSIBLE USES OF CONSUMER CREDIT 
SCORES IN CONSUMER INSURANCE DETERMINATIONS.—
With respect to all personal lines of insurance, including 
any auto, homeowners, dwelling fire, life, disability, and 
health insurance or annuity, intended for consumer, fam-
ily, or household use, an insurance provider may not take 
any of the following actions on the basis, in whole or in 
part, of the consumer report obtained from a consumer
reporting agency), or a credit score, of any consumer, in-
cluding an applicant for such insurance: 
‘‘(1) Refuse to underwrite or renew any such 
insurance. 
‘‘(2) Cancel an existing policy of insurance.
‘‘(3) Increase the premium for any such insur-
ance, either while the policy is in effect or at the 
time of renewal, or fail to offer or provide any dis-
count otherwise available. 
‘‘(4) Rate the risk of the occurrence of the 
event covered by such insurance. 
‘‘(5) Assign the insured or applicant to a rating 
tier. 
‘‘(6) Place insurance for an insured consumer 
or applicant with an affiliated company. 
‘‘(7) Require a particular payment plan under 
circumstances where any additional payment plans 
are available for such insurance. 
‘‘(i) COMPLIANCE WITH EQUAL CREDIT OPPOR-
TUNITY ACT.—Any credit scoring system used to generate 
any risk or credit score shall comply with the Equal Credit 
Opportunity Act.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 604(a)(3) of the Fair Credit Re-
porting Act (15 U.S.C. 1681b) is amended—
(A) by striking subparagraph (C); 
(B) by redesignating subparagraphs (D), 
(E), and (F) as subparagraphs (C), (D), and 
(E), respectively; and