the end of the 30-day period beginning on the
date the agency receives the notice of the dis-
pute 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
receives information from the consumer
within 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 re-
ceives 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
reporting agency receives notice of a dispute
from any consumer in accordance with para-
graph (1), the agency shall provide notification
of the dispute to any person that provided any
item of information 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 re-
ceived notice of the dispute from the consumer
and all relevant information regarding the dis-
pute 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 rel-
evant information regarding the dispute that is
received by the agency from the consumer after
the period referred to in subparagraph (A) and
before 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
terminate a reinvestigation of information dis-
puted by a consumer under that paragraph if
the agency reasonably determines that the dis-
pute by the consumer is frivolous or irrelevant,
including by reason of a failure by a consumer
to provide sufficient 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
notify the consumer within 5 days of such de-
termination, 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 UNVERI-
FIABLE 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 in-
formation deleted shall consist solely of the in-
formation 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 reporting agency unless the per-
son who furnishes the information certifies
that the information is complete and accu-
rate.
‘‘(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 dis-
puted 
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
request, the name, business address,
and telephone number of any fur-
nisher of information contacted, or of
any furnisher of information which
contacted the consumer reporting
agency, 
in 
connection 
with 
the
reinsertion of such information;
‘‘(III) 
the 
toll-free 
telephone
number 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 respect to obtaining the
information described in subclause
(II); and
‘‘(IV) a notice that the consumer
has the right to add a statement to
the consumer’s file disputing the accu-
racy or completeness of the disputed
information.
‘‘(C) PROCEDURES
TO
PREVENT
RE-
APPEARANCE.—A consumer reporting agency
shall maintain reasonable procedures designed
to prevent the reappearance in a consumer’s
file, and in consumer reports on the consumer,
of information that is deleted pursuant to this
paragraph (other than information that is
reinserted in accordance with subparagraph
(B)(i)).
‘‘(D) FREE
CONSUMER
REPORT
DURING
12-MONTH PERIOD AFTER DELETION OF INFOR-
MATION.—Upon the request of a consumer, a
consumer reporting agency shall make all dis-
closures pursuant to section 609 without charge
to that consumer at least once during the 12-
month period after the consumer receives a no-
tification under paragraph (6) or paragraph (8)
of the deletion of information that is found to
be inaccurate 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
completion of the reinvestigation, by mail or, if
authorized by the consumer for that purpose,
by other means available to the agency.
‘‘(B) CONTENTS.—As part of or in addi-
tion 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 con-
sumer’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 in-
formation contacted in connection with
such information;
‘‘(v) a notice that the consumer has
the right to add a statement to the con-
sumer’s file disputing the accuracy or com-
pleteness of the information; and
‘‘(vi) a notice that the consumer has
the right to request under subsection (d)
that the consumer reporting agency fur-
nish notifications under that subsection.
‘‘(7) DESCRIPTION OF REINVESTIGATION PRO-
CEDURE.—A consumer reporting agency shall pro-
vide to a consumer a description referred to in para-
graph (6)(B)(iv) by not later than 15 days after re-
ceiving a request from the consumer for that de-
scription.
‘‘(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 receives notice of the dispute from the
consumer in accordance with paragraph (1)(A), then
the agency shall not be required to comply with
paragraphs (2), (6), and (7) with respect to that dis-
pute if the agency—
‘‘(A) provides prompt notice of the deletion
to the consumer by telephone;
‘‘(B) includes in that notice, or in a writ-
ten notice that accompanies a confirmation and
consumer report provided in accordance with
subparagraph (C), a statement of the consum-
er’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
section 611 of the Fair Credit Reporting Act (15 U.S.C.
1681i(d)) is amended by striking ‘‘The consumer report-
ing 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 CER-
TAIN DISCLOSURES.—Except as provided in subsections
(b), (c), (d), and (f), a consumer reporting agency may
impose a reasonable 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
NOTICE TO CONSUMER.—Each consumer reporting agen-
cy that maintains a file on a consumer shall make all dis-
closures 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 consum-
er’s credit rating may be or has been adversely affected,
the consumer makes a request under section 609.
‘‘(c) FREE CONSUMER REPORT UNDER CERTAIN
OTHER
CIRCUMSTANCES.—Upon the request of the
consumer, a consumer reporting agency shall make all dis-
closures pursuant to section 609 without charge to that
consumer if the consumer certifies in writing that the
consumer—
‘‘(1) is unemployed and intends to apply for
employment in the 60-day period beginning on the
date the certification is made;
‘‘(2) is a recipient of public welfare assistance;
or
‘‘(3) has reason to believe that the file on the
consumer at the agency contains inaccurate informa-
tion due to fraud.
‘‘(d) CHARGE
FOR
CERTAIN
NOTICES
PROHIB-
ITED.—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 sec-
tion 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 incomplete or inaccurate.
‘‘(f) ANNUAL CONSUMER REPORT UPON REQUEST
AT SPECIFIED CHARGE.—
‘‘(1) IN GENERAL.—Upon the written request
of a consumer, a consumer reporting agency that
maintains a file on the consumer shall make all dis-
closures pursuant to section 609 once in any 12-
month period, at the charge specified in paragraph
(2).
‘‘(2) CHARGE SPECIFIED.—The charge for dis-
closures under paragraph (1) shall be an amount
that does not exceed the lesser of—
‘‘(A) the total cost incurred by the
consumer reporting agency in making the dis-
closures; or
‘‘(B) $3.’’.
SEC. 111. AMENDMENTS RELATING TO DUTIES OF USERS
OF CONSUMER REPORTS AND DUTIES OF AF-
FILIATES SHARING CERTAIN INFORMATION.
(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 respect to any consumer in connection with
any transaction initiated by the consumer or any employ-
ment determination, 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 pursu-
ant 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
reporting 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
section for obtaining such a copy; and
‘‘(B) to dispute, under section 611, with a
consumer reporting agency the accuracy or
completeness of any information in a consumer
report furnished by the agency.’’.
(b) DUTIES OF USERS WHO MAKE CERTAIN CREDIT
SOLICITATIONS.—Section 615 of the Fair Credit Report-
ing Act (15 U.S.C. 1681m) is amended by adding at the
end the following new subsection:
‘‘(d) DUTIES OF USERS WHO MAKE WRITTEN CRED-
IT 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
credit because the consumer satisfied the cri-
teria for creditworthiness under which the
consumer was selected for the offer;
‘‘(C) if applicable, the credit may not be
extended 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 criteria bearing on creditworthiness
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
TELE-
PHONE NUMBER.—A statement under paragraph (1)
shall include the address and toll-free telephone
number of the appropriate notification system estab-
lished under section 604(d).
‘‘(3) MAINTAINING CRITERIA ON FILE.—A per-
son 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 criteria bearing
on creditworthiness that are the basis for determin-
ing whether or not to extend credit pursuant to the
offer, and any requirement for the furnishing of col-
lateral 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 re-
port, 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 cus-
tomers, the consumer has been afforded
the opportunity to direct in writing that
the report may not be provided to or used
by persons who are affiliated in the man-
ner described in subparagraph (A) and has
not done so.’’.
(c) ADVERSE ACTIONS BY AFFILIATES BASED ON
CERTAIN INFORMATION.—Section 615 of the Fair Credit
Reporting Act (15 U.S.C. 1681m) is further amended by
adding after subsection (d), as added by subsection (b)
of this section, the following new subsection:
‘‘(e) DUTIES OF AFFILIATES TAKING ADVERSE AC-
TIONS BASED ON CERTAIN INFORMATION.—Whenever an
adverse action is taken in connection with any transaction
initiated by a consumer or any employment determination,
which is based in whole or in part on information that
was furnished to the user of the information, other than
in a consumer report, by a person related by common own-
ership or affiliated by common corporate control to the
user and that bears upon the consumer’s credit worthi-
ness, credit standing, credit capacity, character, general
reputation, personal characteristics, or mode of living, the
user of the information shall—
‘‘(1) notify the consumer in writing of the ac-
tion, including a statement that the consumer may
obtain the information in accordance with paragraph
(2) and may contact the toll-free telephone number
required by paragraph (3);
‘‘(2) upon a written request from the consumer
received within 60 days after transmittal of the no-
tice required by paragraph (1), disclose to the
consumer in writing the nature of the information
on which the adverse action was based by not later
than 30 days after receipt of the request; and
‘‘(3) make available a toll-free number at which
personnel are available to communicate with the
consumer regarding the action during normal busi-
ness hours.’’.
(d) CONFORMING AMENDMENT.—Section 615(c) of
the Fair Credit Reporting Act (15 U.S.C. 1681m(c)) is
amended by striking ‘‘subsections (a) and (b)’’ and insert-
ing ‘‘this section’’.
SEC. 112. AMENDMENTS RELATING TO CIVIL LIABILITY.
(a) CIVIL LIABILITY
FOR WILLFUL NONCOMPLI-
ANCE, GENERALLY.—Section 616 of the Fair Credit Re-
porting Act (15 U.S.C. 1681n) is amended by striking
‘‘Any consumer reporting agency or user of information
which’’ and inserting ‘‘(a) IN GENERAL.—Any person
who’’.
(b) MINIMUM CIVIL LIABILITY FOR WILLFUL NON-
COMPLIANCE.—Section 616(1) of the Fair Credit Report-
ing Act (15 U.S.C. 1681n(1)) is amended to read as fol-
lows:
‘‘(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 pre-
tenses 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 insert-
ing ‘‘(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 follow-
ing:
‘‘(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 sec-
tion 623 as section 624 and inserting after section 622
the following new section:
‘‘§ 623. Responsibilities of furnishers of information
to consumer reporting agencies
‘‘(a) DUTY OF FURNISHERS OF INFORMATION TO
PROVIDE COMPLETE AND ACCURATE INFORMATION.—
‘‘(1) PROHIBITIONS.—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.
‘‘(2) DUTY TO CORRECT AND UPDATE INFOR-
MATION.—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 report-
ing agency information that the person deter-
mines 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
accurate, and shall not thereafter furnish to the
agency any of the information that remains not com-
plete 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 no-
tify the agency of the voluntary closure of the ac-
count by the consumer, in information regularly fur-
nished for the period in which the account is closed.
‘‘(5) DUTY
TO
PROVIDE
NOTICE
OF
DELIN-
QUENCY OF ACCOUNTS.—A person who furnishes in-
formation to a consumer reporting agency regarding
a delinquent account being placed for collection,
charged to profit or loss, or subjected to any similar
action shall, by not later than 90 days after furnish-
ing the information, notify the agency of the month
and year of the commencement of the delinquency
which immediately preceded the action.
‘‘(b) DUTIES
OF FURNISHERS
OF INFORMATION
UPON NOTICE OF DISPUTE.—
‘‘(1) IN GENERAL.—After receiving notice pur-
suant to section 611(a)(2) of a dispute with regard
to the completeness or accuracy of any information
provided by a person to a consumer reporting agen-
cy, 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 in-
formation.
‘‘(2) DEADLINE.—A person shall complete all
investigations, 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 information.
‘‘(c) LIMITATION ON LIABILITY.—Sections 616 and
617 do not apply to any failure to comply with subsection
(a), 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 re-
lating to section 623 and inserting the following:
‘‘623. Responsibilities of furnishers of information to consumer reporting agen-
cies.
‘‘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 re-
porting agency that—
‘‘(A) the person has made the disclosures
to the consumer required by paragraph (1); and
‘‘(B) the person will comply with sub-
section (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
certification 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 in-
vestigative consumer report which includes informa-
tion 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 re-
port 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 in-
terest of the consumer and that is obtained through
a personal interview with a neighbor, friend, or asso-
ciate 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
procedures to obtain confirmation of the infor-
mation, from an additional source that has
independent and direct knowledge of the infor-
mation; or
‘‘(B) the person interviewed is the best
possible 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, imprisoned 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
sentence 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 func-
tions 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 Federal 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 en-
force the provisions of this title in the same manner
as if the violation had been a violation of any Fed-
eral 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
preceding 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, persons who furnish
information to such agencies, and users of information
who are subject to section 615(e) 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
following 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
jurisdiction;
‘‘(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), damages for which the person
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 viola-
tion; 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 attor-
ney 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
Federal regulator determined under subsection (b)
and provide the Commission or appropriate Federal
regulator 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 instituting such action. The Commission or ap-
propriate 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 enforce-
ment 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 at-
tendance of witnesses or the production of documen-
tary and other evidence.
‘‘(4) 
LIMITATION.—Whenever 
the 
Federal
Trade Commission or the appropriate Federal regu-
lator has instituted a civil action for violation of this
title, no State may, during the pendency of such ac-
tion, bring an action under this section against any
defendant named in the complaint of the Commis-
sion or the appropriate Federal regulator for any
violation of this title that is alleged in that com-
plaint.’’.
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 Re-
serve Board may issue interpretations of any provision of
this title as it may apply to any persons identified under
subsection (b) (1), (2), and (3), or to the holding compa-
nies 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 com-
piles and maintains files on consumers on a nationwide
basis shall establish (and thereafter maintain) a toll-free
telephone number for the purpose of making agency per-
sonnel accessible to consumers for communicating with the
agency during normal business hours.’’.
SEC. 120. PREEMPTION OF STATE LAW.
Section 624 of the Fair Credit Reporting Act, as re-
designated by section 113(a) of this Act, is further amend-
ed—
(1) by striking ‘‘This title’’ and inserting ‘‘(a)
IN GENERAL.—Except as provided in subsections
(b) and (c), this title’’; and
(2) by adding at the end the following:
‘‘(b) GENERAL EXCEPTIONS.—No requirement or
prohibition may be imposed under the laws of any State—
‘‘(1) with respect to any subject matter regu-
lated under—
‘‘(A) subsection (c) or (d) of section 604,
relating to the prescreening of consumer re-
ports;
‘‘(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, except that this
subparagraph does not apply to any State law
in effect on the date of the enactment of the
Consumer Reporting Reform Act of 1994;
‘‘(C) section 615(a), relating to the duties
of a person who takes any adverse action with
respect to a consumer on the basis of informa-
tion 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;
‘‘(E) section 605, relating to obsolete in-
formation, except that this subparagraph does
not apply to any State law in effect on the date
of the enactment of the Consumer Reporting
Reform Act of 1994; or
‘‘(F) section 623(b)(2), relating to the
time by which a person must take any action
required under section 623(b)(1) with respect
to an investigation of information furnished by
the person to a consumer reporting agency, ex-
cept that this subparagraph does not apply to
any State law in effect on the date of the enact-
ment of the Consumer Reporting Reform Act of
1994;
‘‘(2) with respect to the exchange of informa-
tion 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).
‘‘(c) DEFINITION OF FIRM OFFER OF CREDIT.—Not-
withstanding any definition of the term ‘firm offer of cred-
it’ (or any equivalent term) under the laws of any State,
the definition of that term contained in section 603(l) shall
be construed to apply in the enforcement and interpreta-
tion of the laws of any State governing consumer reports.
‘‘(d) LIMITATIONS.—Subsections (b) and (c)—
‘‘(1) do not affect any settlement, agreement, or
consent judgment between any State Attorney Gen-
eral and any consumer reporting agency in effect on
the date of the enactment of the Consumer Report-
ing Reform Act of 1994; and
‘‘(2) do not apply to any provision of State law
(including any provision of a State constitution)
that—
‘‘(A) is enacted after January 1, 2003;
‘‘(B) states explicitly that the provision is
intended to supplement this Act; and
‘‘(C) gives greater protection to consumers
than is provided under this Act.’’.
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 im-
posed 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
respect to a consumer on the basis of informa-
tion contained in a consumer report;
‘‘(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; or
‘‘(D) section 623(b)(2), relating to the
time by which a person must take any action
required under section 623(b)(1) with respect
to an investigation of information furnished by
the person to a consumer reporting agency; 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 Fed-
eral 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 en-
actment 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 beginning on the date of the enactment of
this Act.
(2) FTC AUTHORITY.—Subsection (a) shall not
affect the authority of the Federal Trade Commis-
sion 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 subsection (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 IN-
VESTIGATION TO OBTAIN
AND USE CONSUMER RE-
PORTS.—
(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 Inves-
tigation to obtain and use consumer re-
ports
‘‘(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
conduct of an authorized foreign counterintelligence
investigation; 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 Sur-
veillance Act of 1978 (50 U.S.C. 1801(c))) or
clandestine 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
necessary for approval or conduct of the inves-
tigation.
‘‘(2) LIMITATION ON FURTHER DISSEMINATION
BY DEPARTMENT OF JUSTICE.—An officer or em-
ployee of the Department of Justice shall not pro-
vide 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 Inves-
tigation, within 6 months after the completion of an
investigation for which a consumer report is pro-
cured under section 604(a)(4), shall notify the
consumer reporting agency that furnished the report
that the investigation 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 furnish-
ing 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 offi-
cer 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
employee of the court in connection with the issu-
ance of an order under subsection (a) with respect
to the report.
‘‘(2) CONSUMER REPORTING AGENCY OFFICER
OR
EMPLOYEE.—An officer or employee of a
consumer reporting agency 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—
‘‘(A) for the purpose of furnishing the re-
port 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 report.
‘‘(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 INVESTIGA-
TION
REQUIRED.—Notwithstanding 
section
609(a)(3) and subject to paragraph (2), a consumer
reporting agency shall not disclose under that sec-
tion the identity of the Federal Bureau of Investiga-
tion or that the agency has furnished a consumer re-
port to the Federal Bureau of Investigation, unless
the consumer reporting agency has received from the
Federal Bureau of Investigation a notice under sub-
section (b)(3) of the completion of the investigation
with respect to which the report was furnished.
‘‘(2) DISCLOSURES
REQUIRED.—A consumer
reporting 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 Inves-
tigation 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
violation 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
reasonable 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
except 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 sec-
tion 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 sec-
tion 113(b) of this Act, is further amended by add-
ing 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 begin-
ning of the Fair Credit Reporting Act, the item
relating 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 estab-
lishing and maintaining their creditworthiness and
credit standing in order to obtain and use credit. As
a result, consumers who have experienced credit
problems may seek assistance from credit repair or-
ganizations which offer to improve the credit stand-
ing 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
follows:
‘‘(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
individual for personal, family, or household pur-
poses.
‘‘(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
perform) 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
effect of which is to alter the consumer’s identifica-
tion to prevent the display of the consumer’s credit
record, history, or rating for the purpose of conceal-
ing adverse information that is accurate and not ob-
solete 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 orga-
nization; 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 orga-
nization may charge or receive any money or other valu-
able 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 be-
tween 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 re-
ported for 10 years.
‘‘ ‘You have a right to obtain a copy of your credit
report from a credit bureau. You may be charged a rea-
sonable fee. There is no fee, however, if you have been
turned down for credit, employment, insurance, or a rental
dwelling because of information in your credit report with-
in the preceding 60 days. The credit bureau must provide
someone to help you interpret the information in your
credit file. You are entitled to receive a free copy of your
credit report if you are unemployed and intend to apply
for employment in the next 60 days, if you are a recipient
of public welfare assistance, or if you have reason to be-
lieve that there is inaccurate information in your credit
report due to fraud.
‘‘ ‘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 organiza-
tions.
‘‘ ‘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
procedures to ensure that the information they report is
accurate. 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 re-
solve the dispute to your satisfaction, you may send a brief
statement 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
bureaus and credit repair organizations. For more infor-
mation 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 or-
ganization 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 state-
ment.
‘‘(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 re-
quirements 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
contract referred to in subsection (a) meets the require-
ments 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 organiza-
tion for the consumer, including—
‘‘(A) all guarantees of performance; and
‘‘(B) an estimate of—
‘‘(i) the date by which the perform-
ance 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 nec-
essary 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 be-
fore 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 cred-
it repair 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
repair 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 con-
tract for services which does not comply with the applica-
ble provisions 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
sustained 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
plaintiff; and
‘‘(ii) the aggregate of the amount
which the court may allow for each other
class member, without regard to any mini-
mum individual recovery.
‘‘(3) ATTORNEYS’ FEES.—In the case of any
successful 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
PUNITIVE DAMAGES.—In determining the amount of any
liability of any credit repair organization under subsection
(a)(2), the court shall consider, among other relevant fac-
tors—
‘‘(1) the frequency and persistence of non-
compliance 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 require-
ments imposed under this title with respect to credit repair
organizations shall be enforced under the Federal Trade
Commission Act by the Federal Trade Commission.
‘‘(b) VIOLATIONS OF THIS TITLE TREATED AS VIO-
LATIONS OF FEDERAL TRADE COMMISSION ACT.—
‘‘(1) IN GENERAL.—For the purpose of the ex-
ercise by the Federal Trade Commission of the Com-
mission’s functions and powers under the Federal
Trade Commission Act, any violation of any require-
ment or prohibition imposed under this title with re-
spect 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 Com-
mission Act shall be available to the Commission to
enforce compliance with this title by any person sub-
ject to enforcement by the Federal Trade Commis-
sion 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 or-
ganization—
‘‘(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 per-
son is liable to such residents under section 409
as a result of the 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 attor-
ney fees as determined by the court.
‘‘(2) RIGHTS OF COMMISSION.—
‘‘(A) NOTICE TO COMMISSION.—The State
shall serve prior written notice of any civil ac-
tion under paragraph (1) upon the Federal
Trade Commission and provide the Commission
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 imme-
diately upon instituting such action.
‘‘(B) INTERVENTION.—The Commission
shall have the right—
‘‘(i) to intervene in any action re-
ferred to in subparagraph (A);
‘‘(ii) upon so intervening, to be heard
on all matters arising in the action; and
‘‘(iii) 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 enforce-
ment 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 at-
tendance of witnesses or the production of documen-
tary and other evidence.
‘‘(4) 
LIMITATION.—Whenever 
the 
Federal
Trade Commission has instituted a civil action for
violation of this title, no State may, during the pend-
ency of such action, bring an action under this sec-
tion against any defendant named in the complaint
of the Commission for any violation of this title that
is alleged in that complaint.
‘‘SEC. 411. STATUTE OF LIMITATIONS.
‘‘Any action to enforce any liability under this title
may be brought before the later of—
‘‘(1) the end of the 2-year period beginning on
the date of the occurrence of the violation involved;
or
‘‘(2) in any case in which any credit repair or-
ganization has materially and willfully misrepre-
sented any information which—
‘‘(A) the credit repair organization is re-
quired, by any provision of this title, to disclose
to any consumer; and
‘‘(B) is material to the establishment of
the credit repair organization’s liability to the
consumer under this title,
the end of the 2-year period beginning on the date
of the discovery by the consumer of the misrepresen-
tation.
‘‘SEC. 412. RELATION TO STATE LAW.
‘‘This title shall not annul, alter, affect, or exempt
any person subject to the provisions of this title from com-
plying with any law of any State except to the extent that
such law is inconsistent with any provision of this title,
and then only to the extent of the inconsistency.
‘‘SEC. 413. EFFECTIVE DATE.
‘‘This title shall apply after the end of the 6-month
period beginning on the date of the enactment of the Cred-
it Repair Organizations Act, except with respect to con-
100
tracts entered into by a credit repair organization before
the end of such period.’’.
Passed the House of Representatives June 13, 1994.
Attest:
DONNALD K. ANDERSON,
Clerk.
HR 1015 PCS——2
HR 1015 PCS——3
HR 1015 PCS——4
HR 1015 PCS——5
HR 1015 PCS——6
HR 1015 PCS——7
HR 1015 PCS——8
Calendar No. 461
103D CONGRESS
2D SESSION
H. R. 1015
AN ACT
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.
JUNE 14 (legislative day, JUNE 7), 1994
Received; read twice and placed on the calendar