I
106TH CONGRESS
2D SESSION
H. R. 4311
To prevent identity fraud in consumer credit transactions and credit reports,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 13, 2000
Ms. HOOLEY of Oregon (for herself, Mr. LATOURETTE, Mr. LAFALCE, Mr.
BENTSEN, Mr. HILL of Montana, Mr. KANJORSKI, Mrs. MALONEY of
New York, Mr. NEY, Mr. METCALF, Mr. SANDLIN, Ms. CARSON, Mr.
MOORE, and Mr. ACKERMAN) introduced the following bill; which was re-
ferred to the Committee on Banking and Financial Services
A BILL
To prevent identity fraud in consumer credit transactions
and 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 ‘‘Identity Theft Preven-
tion Act of 2000’’.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The crime of identity theft has become one
of the major law enforcement challenges of the new
(7) The resources available to identity theft vic-
tims are inadequate, and both the private sector and
Federal agencies should provide better and more
sympathetic assistance to such victims.
(8) Credit reporting agencies and credit issuers
should have uniform reporting requirements and ef-
fective fraud alerts to assist identity theft victims in
repairing and protecting their credit.
(9) Consumers need greater access to informa-
tion that is collected about them so they can quickly
identify fraudulent activity.
SEC. 3. CHANGES OF ADDRESS.
(a) DUTY OF ISSUERS OF CREDIT.—Section 132 of
the Truth in Lending Act (15 U.S.C. 1642) is amended—
(1) by striking ‘‘No credit’’ and inserting ‘‘(a)
IN GENERAL.—No credit’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) CONFIRMATION OF CHANGE OF ADDRESS.—
‘‘(1) IN
GENERAL.—Not later than 10 days
after receiving notification form a cardholder of a
change of address, a card issuer shall send to the
card holder, both to the new address and to the
former address of the cardholder, written confirma-
tion of that change of address.
‘‘(2) NOTIFICATION OF REQUEST FOR ADDI-
TIONAL CARDS.—If a card issuer receives a request
for an additional credit card with respect to an exist-
ing credit account not later than 30 days after re-
ceiving notification of a change of address for that
account, the card issuer shall notify the card holder
of the request at both the new address and the
former address.’’.
(b) DUTY OF CONSUMER REPORTING AGENCIES.—
Section 605 of the Fair Credit Reporting Act (15 U.S.C.
1681c) is amended by adding at the end the following new
subsection:
‘‘(g) NOTICE OF POTENTIAL FRAUD.—A consumer
reporting agency shall notify each user of a consumer re-
port that is a creditor (as defined in section 103) if the
agency becomes aware that an application to the card
issuer to open a new credit card account bears an address
for the consumer that is different from the address in the
file of the consumer.’’.
(c) ENFORCEMENT.—
(1) FEDERAL TRADE COMMISSION.—Except as
provided in paragraph (2), compliance with section
132(b) of the Truth in Lending Act (as added by
subsection (a)(2) of this section) shall be enforced by
the Federal Trade Commission in the same manner
and with the same power and authority as the Com-
mission has under the Fair Debt Collection Prac-
tices Act to enforce compliance with that Act.
(2) OTHER
AGENCIES
IN
CERTAIN
CASES.—
Compliance with section 132(b) of the Truth in
Lending Act (as added by subsection (a)(2) of this
section) shall be enforced under—
(A) section 8 of the Federal Deposit Insur-
ance Act, in the case of a card issuer that is—
(i) a national bank or a Federal
branch or Federal agency of a foreign
bank, by the Office of the Comptroller of
the Currency;
(ii) a member bank of the Federal Re-
serve System (other than a national bank),
a branch or agency of a foreign bank
(other than a Federal branch, Federal
agency, or insured State branch of a for-
eign bank), a commercial lending company
owned or controlled by a foreign bank, or
an organization operating under section 25
or 25A of the Federal Reserve Act, by the
Board of Governors of the Federal Reserve
System;
(iii) a bank insured by the Federal
Deposit Insurance Corporation (other than
a member of the Federal Reserve System
or a national nonmember bank) or an in-
sured State branch of a foreign bank, by
the Board of Directors of the Federal De-
posit Insurance Corporation; and
(iv) a savings association, the deposits
of which are insured by the Federal De-
posit Insurance Corporation, by the Direc-
tor of the Office of Thrift Supervision; and
(B) the Federal Credit Union Act, by the
Administrator of the Nation Credit Union Ad-
ministration, in the case of a card issuer that
is a Federal credit union, as defined in that
Act.
(3) VIOLATIONS TREATED AS VIOLATIONS OF
OTHER LAWS.—
(A) IN GENERAL.—For the purpose of the
exercise by any agency referred to in this sub-
section of its powers under any Act referred to
in this subsection, a violation of section 132 (b)
of the Truth in Lending Act (as added by sub-
section (a)(2) of this section) shall be deemed
to be a violation of a requirement imposed
under that Act.
(B) POWERS UNDER OTHER LAWS.—In ad-
dition to the powers under any provision of law
specifically referred to in paragraph (1) or (2),
each of the agencies referred to in those para-
graphs may exercise, for the purpose of enforc-
ing compliance with section 132 (b) of the
Truth in Lending Act (as added by subsection
(a)(2) of this section), any other authority con-
ferred on such agency by law.
SEC. 4. FRAUD ALERTS.
Section 605 of the Fair Credit Reporting Act (15
U.S.C. 1681c) is amended by adding at the end the fol-
lowing new subsection:
‘‘(h) FRAUD ALERTS.—
‘‘(1) IN GENERAL.—Upon the request of a con-
sumer, a consumer reporting agency shall include a
fraud alert in the file of that consumer.
‘‘(2) NOTICE TO USERS.—A consumer reporting
agency shall notify each person procuring consumer
credit information with respect to a consumer of the
existence of a fraud alert in the file of that con-
sumer regardless of whether a full credit report,
credit score, or summary report is requested.
‘‘(3) PENALTIES.—Any consumer reporting
agency that fails to comply with this subsection, and
any user of a consumer report that fails to comply
with preauthorization procedures contained in a
fraud alert and issues or extends credit in the name
of the consumer to a person other than the con-
sumer, shall be in violation of this section.
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘fraud alert’ means a clear and
conspicuous statement in the file of a consumer that
notifies all prospective users of a consumer report
made with respect to that consumer that the con-
sumer does not authorize the issuance or extension
of credit in the name of the consumer unless—
‘‘(A) the issuer of such credit first obtains
verbal authorization from the consumer at a
telephone number designated by the consumer;
or
‘‘(B) the issuer complies with such other
method of preauthorization by the consumer as
is mutually agreed upon by the consumer and
the consumer reporting agency.’’.
SEC. 5. REGULATIONS ON DUTY TO INVESTIGATE.
Before the end of the 6-month period beginning on
the date of the enactment of this Act, the Federal Trade
Commission shall prescribe regulations to require each
consumer reporting agency (as defined section 603 of the
Fair Credit Reporting Act) to investigate discrepancies be-
tween personal or identifying information contained in the
file maintained by the agency with respect to a consumer
and in the personal and identifying information supplied
to the agency by the user of the consumer report.
SEC. 6. FREE REPORTS ANNUALLY.
Section 612(c) of the Fair Credit Reporting Act (15
U.S.C. 1681j(c)) is amended to read as follows:
‘‘(c) FREE ANNUAL DISCLOSURE.—Upon the request
of the consumer, a consumer reporting agency shall make
all disclosures pursuant to section 609 once during any
12-month period without charge to the consumer.’’.
SEC. 7. IDENTIFYING INFORMATION.
(a) LIMITATION.—The Fair Credit Reporting Act (15
U.S.C 1601 et seq.) is amended—
(1) by redesignating section 624 with the head-
ing ‘‘Relation to State laws’’ (15 U.S.C. 1681t, as
so designated by section 2413 of Public Law 104–
208) as section 626 and moving that section and in-
serting it after section 625 (as so designated by
paragraph (2) of this section);
(2) by redesignating section 624 with the head-
ing ‘‘Disclosures to FBI for counterintelligence pur-
poses’’ (15 U.S.C. 1618u, as added by section 601
of Public Law 104–93) as section 625; and
(3) by inserting after section 623 the following
new section:
‘‘SEC. 624. OTHER IDENTIFYING INFORMATION.
‘‘Except as provided in section 608, a consumer re-
porting agency may furnish consumer identifying informa-
tion, other than the name, generational designation, and
current address of the consumer, only in a consumer re-
port.’’.
(b) DISCLOSURES TO GOVERNMENTAL AGENCIES.—
Section 608 of the Fair Credit Reporting Act (15 U.S.C.
1618f) is amended by striking ‘‘section 604’’ and inserting
‘‘sections 604 and 623’’.
(c) PERMISSIBLE PURPOSES.—Section 604(a) of the
Fair Credit Reporting Act (15 U.S.C.1681b(a)) is amend-
ed in the matter proceeding paragraph (1) by inserting
‘‘or any identifying information (other than the name,
generational designation, or current address of the con-
sumer)’’ after ‘‘a consumer report’’.
SEC. 8. INDIVIDUAL REFERENCE SERVICES.
(a) IN GENERAL.—An individual reference services
provider shall, upon request and proper identification of
a consumer—
(1) clearly and accurately disclose to the con-
sumer the nature, content, and substance of all in-
formation in the file maintained by the provider with
respect to the consumer at the time of the request
that is obtainable based upon the identifying infor-
mation supplied by the consumer when making such
request; and
(2) if the consumer has made a written request,
deliver a written copy or photocopy of all informa-
tion described in paragraph (1), together with a
clear, simple, and plain meaning explanation of the
information provided under this subsection, in a
readable format and type, which shall in no case be
smaller than 10 point type.
(b) INDIVIDUAL REFERENCE SERVICES PROVIDER
DEFINED.—
(1) IN GENERAL.—For purposes of this section,
the term ‘‘individual reference services provider’’—
(A) means any person who, for monetary
fees, dues, or on a cooperative nonprofit basis
regularly engages in the practice of creating,
assembling, evaluating, or providing informa-
tion, either directly or as a supplier to others,
with respect to any person regarding any 2 or
more items of information described in para-
graph (2); and
(B) does not include the Federal Govern-
ment or any State government or political divi-
sion thereof.
(2) TYPES OF INFORMATION.—The items of in-
formation described in this paragraph are as follows:
(A) Social Security number or other social
security information.
(B) Mother’s maiden name.
(C) Prior address.
(D) Birth date.
(E) Criminal history.
(F) History of civil actions.
(G) Driving records.
(H) Vehicle information.
(I) Past employment history.
(J) Income level.
(K) Tax records.
(L) History of voter registration.
(M) Other similar information, as deter-
mined by the Federal Trade Commission.
SEC. 9. MODEL FORMS.
(a) IN GENERAL.—Before the end of the 6-month pe-
riod beginning on the date of the enactment of this Act,
the Federal Trade Commission shall develop a model form
and standard procedures to be used by consumers that
are victims of identity fraud in contacting and informing
creditors and credit reporting agencies of such fraud, if
the Commission determines, at that time, that issuers of
credit and credit reporting agencies have failed to jointly
develop such a model form and standard procedures.
(b) CONTENTS.—A model form developed under sub-
section (a) (by the Commission or any other person re-
ferred to in subsection (a)) shall require information nec-
essary to demonstrate the fraudulent activity done in the
name of the consumer to whom the form relates, includ-
ing, if applicable—
(1) a notarized affidavit or police report relat-
ing to the activity;
(2)a notarized handwriting sample; and
(3) any other relevant documentation.
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