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)’’ be-
fore the semicolon.
(f) FORM OF DISCLOSURES.—
(1) IN GENERAL.—Subsections (a) and (b) of
section 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
reporting agency shall require, as a condition of
making 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 disclosures 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 tele-
phone;
‘‘(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.—Not later than
90 days after the date of enactment of this Act, each
consumer reporting agency shall develop a form on
which such consumer reporting agency shall make
the disclosures required under section 609(a) of the
Fair Credit Reporting Act, for the purpose of maxi-
mizing the comprehensibility and standardization of
such disclosures.
(3) GOALS.—The Federal Trade Commission
shall take appropriate action to assure that the goals
of 
comprehensibility 
and 
standardization 
are
achieved in accordance with paragraph (2).
(4) 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 strik-
ing ‘‘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 section 610 by inserting ‘‘and form’’ after
‘‘Conditions’’.
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 a consumer’s file at a consumer reporting
agency is disputed by the consumer and the
consumer notifies the agency directly of such
dispute, the agency shall reinvestigate free of
charge and record the current status of the dis-
puted information, or delete the item from the
file in accordance with paragraph (5), before
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 for up to,
but for no more than, 15 additional days if the
consumer reporting agency receives information
from the consumer within that 30-day period
that is relevant to the reinvestigation.
‘‘(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 the consumer reporting agency de-
termines that the information cannot be veri-
fied.
‘‘(2) PROMPT
NOTICE
OF
DISPUTE
TO
FUR-
NISHER OF INFORMATION.—
‘‘(A) IN GENERAL.—Before the end of the
5-business-day period beginning on the date a
consumer reporting agency receives notice of a
dispute from any consumer in accordance with
paragraph (1), the agency shall provide notifi-
cation of the dispute to any person that pro-
vided any item of information in dispute, at the
address and in the manner established with the
person. The notice shall include 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 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 business days of
such determination, 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, which may consist of a standard-
ized form describing the general nature of
such information.
‘‘(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 notify the consumer
of the reinsertion in writing within 5 busi-
ness days after the reinsertion or, if au-
thorized by the consumer for that purpose,
by any other means available to the agen-
cy.
‘‘(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 5 business days after the date of
the reinsertion—
‘‘(I) a statement that the dis-
puted 
information 
has 
been
reinserted;
‘‘(II) 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; and
‘‘(III) a notice that the consumer
has the right to add a statement to
the consumer’s file disputing the accu-
tains files on consumers on a nationwide
basis shall implement an automated system
through which furnishers of information to
that consumer reporting agency may re-
port the results of a reinvestigation that
finds incomplete or inaccurate information
in a consumer’s file to other such
consumer reporting agencies.
‘‘(ii) NATIONWIDE
CONSUMER
RE-
PORTING AGENCIES.—A consumer report-
ing agency that compiles and maintains
files on consumers on a nationwide basis
shall report the results of a reinvestigation
initiated by a consumer under section 611
that finds in the consumer’s file informa-
tion that is incomplete or inaccurate or in-
formation that cannot be verified, to any
other consumer reporting agency that com-
piles and maintains files on consumers on
a nationwide basis and—
‘‘(I) to which a consumer report
on the consumer was provided within
the preceding 2-year period for pur-
poses of resale by that other agency;
or
‘‘(II) to which a consumer report
on the consumer was provided within
the preceding 7-year period for pur-
poses of merging that report to that
other agency’s proprietary files.
‘‘(iii) ACTION
REQUIRED
UPON
RE-
CEIPT OF REPORT.—If a consumer report-
ing agency receives a report under clause
(ii), the agency shall—
‘‘(I) change the data in its files
in accordance with the report;
‘‘(II) delete data from its propri-
etary files in accordance with the re-
port; or
‘‘(III) reinvestigate the disputed
data that is the subject of the report
in accordance with section 611, with
the source of that data.
‘‘(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 business days
after the completion of the reinvestigation, by
mail or, if authorized by the consumer for that
purpose, by other means available to the agen-
cy.
‘‘(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
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—
‘‘(A) the name, address, and telephone
number of the consumer reporting agency (in-
cluding a toll-free telephone number established
by the agency if the agency compiles and main-
tains files on consumers on a nationwide basis)
which furnished the report to the person; and
‘‘(B) a statement that the consumer re-
porting agency did not make the decision to
take the adverse action and is unable to provide
the consumer the specific reasons why the ad-
verse action was taken; 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), 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
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.
‘‘(5) AUTHORITY OF FEDERAL AGENCIES RE-
GARDING
UNFAIR
OR
DECEPTIVE
ACTS
OR
PRAC-
TICES NOT AFFECTED.—This title is not intended to
affect the authority of any Federal agency to enforce
a prohibition against unfair or deceptive acts or
practices, including the making of false or mislead-
ing statements in connection with credit transactions
not initiated by the consumer.’’.
(c) DUTIES OF PERSON TAKING CERTAIN ACTIONS
BASED ON INFORMATION PROVIDED BY AFFILIATE.—
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 PERSON TAKING CERTAIN ACTIONS
BASED ON INFORMATION PROVIDED BY AFFILIATE.—
‘‘(1) DUTIES, GENERALLY.—If a person takes
an action described in paragraph (2) with respect to
a consumer based in whole or in part on information
described in paragraph (3), the person shall—
‘‘(A) notify the consumer in writing of the
action, including a statement that the consumer
may obtain the information in accordance with
subparagraph (B) and may contact the toll-free
telephone number required by subparagraph
(C);
‘‘(B) upon a written request from the
consumer received within 60 days after trans-
mittal of the notice required by subparagraph
(A), disclose to the consumer in writing the na-
ture of the information upon which the action
is based by not later than 30 days after receipt
of the request; and
‘‘(C) make available a toll-free telephone
number at which personnel are available to
communicate with the consumer regarding the
action during normal business hours.
‘‘(2) ACTION DESCRIBED.—An action referred
to in paragraph (1) is—
‘‘(A) an adverse action described in section
603(k)(1)(A) taken in connection with a trans-
action initiated by the consumer, or any adverse
(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
reporting 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 and that compile and maintain files
on consumers on a nationwide basis.
‘‘(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).
‘‘(d) LIMITATION
ON ENFORCEMENT.—Subsection
(a) may be enforced exclusively under section 621 by the
Federal agencies and officials and the State officials iden-
tified in that section.’’.
(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 or has certified to the
consumer reporting 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-
‘‘(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.—Section
621(a) of the Fair Credit Reporting Act (15 U.S.C.
1681s(a))—
(1) is amended in the second sentence by strik-
ing ‘‘Act and shall be subject to enforcement by the
Federal Trade Commission under section 5(b) there-
of with respect to any consumer reporting agency or
person subject to enforcement by the Federal Trade
Commission pursuant to this subsection, irrespec-
tive’’ 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 Federal
Trade Commission pursuant to this subsection and
not subject to enforcement pursuant to section 8 of
the Federal Deposit Insurance Act, irrespective’’;
(2) as amended by paragraph (1), is further
amended by inserting before the 3rd period the fol-
lowing: ‘‘, including the power to enforce the provi-
sions of this title in the same manner as if the viola-
tion had been a violation of any Federal Trade Com-
mission trade regulation rule’’; and
(3) as amended by paragraph (1), is further
amended by adding after the 3rd period the follow-
ing: ‘‘Notwithstanding the preceding sentence, a
court may not impose any civil penalty on a person
for a violation of section 623(a)(1) unless the person
has been enjoined from committing the violation, or
ordered not to commit the violation, in an action or
proceeding brought by or on behalf of the Federal
Trade Commission and has violated the injunction
or order, and the court may not impose any civil
penalty for any violation occurring before the date of
the violation of the injunction or order.’’.
(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) subject to paragraph (5), 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 FEDERAL REGULATORS.—The
State shall serve prior written notice of any such ac-
tion upon the Federal Trade Commission or the ap-
propriate Federal regulator determined under sub-
section (b) and provide the Commission or appro-
priate Federal regulator with a copy of its com-
plaint, 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
Federal Trade 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, (C) to remove the action to
the appropriate United States district court, and (D)
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
ON
STATE
ACTION
WHILE
FEDERAL ACTION PENDING.—Whenever the Federal
Trade Commission or the appropriate Federal regu-
lator has instituted a civil action or an administra-
tive action under section 8 of the Federal Deposit
Insurance Act for a 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
appropriate Federal regulator for any violation of
this title that is alleged in that complaint.
‘‘(5) LIMITATIONS ON STATE ACTIONS FOR VIO-
LATION OF SECTION 621(a)(1).—
‘‘(A) VIOLATION
OF
INJUNCTION
RE-
QUIRED.—A State may not bring an action
in effect on the date of the enactment of the
Consumer Reporting Reform Act of 1995;
‘‘(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 1995; 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
1995;
‘‘(2) with respect to the exchange of informa-
tion among persons affiliated by common ownership
or common corporate control, except that this para-
graph does not apply to section 2480e (a) and (c)(1)
of title 9, Vermont Statutes Annotated (as in effect
on the date of the enactment of the Consumer Re-
porting Reform Act of 1995); 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 1995; 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. 120. ACTION BY FTC AND FEDERAL RESERVE BOARD.
(a) MODIFICATION OF REQUIREMENTS BY FTC AND
FEDERAL RESERVE BOARD AUTHORIZED.—
(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 new sub-
section:
‘‘(f) MODIFICATION OF REQUIREMENTS BY FTC AU-
THORIZED.—
‘‘(1) IN GENERAL.—If the Federal Trade Com-
mission considers such action necessary for the pro-
tection of consumers, the Commission may, after
consultation with appropriate State regulatory and
law enforcement agencies, promulgate regulations in
accordance with section 553 of title 5, United States
Code, to impose, with respect to consumer reporting
agencies and all other persons subject to this title
other than any person described in paragraph (1),
(2), or (3) of subsection (b), requirements—
‘‘(A) that are more stringent than those
imposed under—
‘‘(i) section 611, relating to the time
by which a consumer reporting agency
must take any action, including the provi-
sion of notification to a consumer or other
person, in any procedure related to the dis-
puted accuracy of information in a con-
sumer’s file;
‘‘(ii) section 615(a), relating to the
duties of a person who takes any adverse
action with respect to a consumer on the
basis of information contained in a
consumer report;
‘‘(iii) section 615(d), relating to the
duties of persons who use a consumer re-
port on a consumer in connection with any
credit transaction which is not initiated by
the consumer and that consists of a firm
offer of credit; or
‘‘(iv) section 623(b)(2), relating to the
time by which a person must take any ac-
tion required under section 623(b)(1) with
respect to an investigation of information
furnished by the person to a consumer re-
porting agency; and
‘‘(B) with respect to the form and content
of any disclosure required to be made under
section 609(c).
‘‘(2) FEDERAL RESERVE BOARD AUTHORITY.—
If the Board of Governors of the Federal Reserve
System determines such action to be necessary for
the protection of consumers, the Board may pre-
scribe regulations imposing on persons described in
paragraph (1), (2), or (3) of subsection (b) or on the
holding companies and affiliates of such persons any
requirement described in paragraph (1) of this sub-
section.’’.
(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 new item:
‘‘621. Administrative enforcement and authorities; State actions.’’.