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-
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) AUTOMATED REINVESTIGATION SYS-
TEM.—
‘‘(i) IN GENERAL.—Any consumer re-
porting agency that compiles and main-
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
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 business 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 (e), 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 pursuant to section 611(d),
following a reinvestigation under section 611(a), a
statement, codification, or summary to a person des-
ignated by the consumer under that section after the
30-day period beginning on the date of notification
of the consumer under section 611(a)(6) or (8) with
respect to the reinvestigation, 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) OTHER CHARGES PROHIBITED.—A consumer
reporting agency shall not impose any charge on a
consumer for providing any notification required by this
Act or making any disclosure required by this Act, except
as authorized by subsection (a).
‘‘(e) 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 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—
‘‘(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
action described in section 603(k)(1) (B) or
(C);
‘‘(B) a denial of any other transaction ini-
tiated by the consumer for personal, family, or
household purposes; or
‘‘(C) an increase in any charge for a trans-
action described in subparagraph (B).
‘‘(3) INFORMATION
DESCRIBED.—Information
referred to in paragraph (1)—
‘‘(A) except as provided in subparagraph
(B), is information that—
‘‘(i) is furnished to the person taking
the action by a person related by common
ownership or affiliated by common cor-
porate control to the person taking the ac-
tion; and
‘‘(ii) bears on the consumer’s credit
worthiness, credit standing, credit capacity,
character, general reputation, personal
characteristics, or mode of living; and
‘‘(B) does not include—
‘‘(i) information solely as to trans-
actions 
or 
experiences 
between 
the
consumer and the person furnishing the in-
formation; or
‘‘(ii) information in a consumer re-
port.’’.
(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 damages of no
less than $100 and no more than $1,000; 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,
actual damages sustained by the consumer as a re-
sult of the failure 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
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-
ing an investigative consumer report on a consumer
for employment purposes if the making of the in-
quiry by an employer or prospective employer of the
consumer would violate any applicable Federal or
State equal employment opportunity law or regula-
tion.
‘‘(3) CERTAIN
PUBLIC
RECORD
INFORMA-
TION.—Except as otherwise provided in section 613,
a consumer reporting agency shall not furnish an in-
vestigative consumer report which includes informa-
tion which is a matter of public record and which re-
lates to an arrest, indictment, conviction, civil judi-
cial action, tax lien, or outstanding judgment, unless
the agency has verified the accuracy of the informa-
tion within the 30-day period ending on the date the
report is furnished.
‘‘(4) CERTAIN
ADVERSE
INFORMATION.—A
consumer reporting agency shall not prepare or fur-
nish an investigative consumer report on a consumer
that contains information that is adverse to the 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.—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
against a person under paragraph (1)(B) for a
violation of section 623(a)(1), unless—
‘‘(i) the person has been enjoined
from committing the violation, in an action
brought by the State under paragraph
(1)(A); and
‘‘(ii) the person has violated the in-
junction.
‘‘(B) LIMITATION ON DAMAGES RECOVER-
ABLE.—In an action against a person under
paragraph (1)(B) for a violation of section
623(a)(1), a State may not recover any dam-
ages incurred before the date of the violation of
an injunction on which the action is based.’’.
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 Board of
Governors of the Federal Reserve System may issue inter-
pretations of any provision of this title as it may apply
to any persons identified under paragraph (1), (2), and
(3) of subsection (b), or to the holding companies and af-
filiates of such persons, in consultation with Federal agen-
cies identified in paragraphs (1), (2), and (3) of subsection
(b).’’.
SEC. 119. 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, 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 1994); 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. 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.’’.
(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. 121. AMENDMENT TO FAIR DEBT COLLECTION PRAC-
TICES ACT.
Section 807(11) of the Fair Debt Collection Practices
Act (15 U.S.C. 1692e), relating to certain practices con-
stituting prohibited representations, is amended to read
as follows:
‘‘(11) The failure to disclose clearly, in any
written communication made to collect a debt or to
obtain information about a consumer, that the debt
collector is attempting to collect a debt and that any
information obtained will be used for that purpose,
except that this paragraph does not apply to a com-
munication—
‘‘(A) to acquire location information in ac-
cordance with section 804;
‘‘(B) made solely to acknowledge receipt of
monies or payments; or
‘‘(C) that consists solely of information re-
quested by the consumer or the consumer’s at-
torney.’’.
SEC. 122. FURNISHING CONSUMER REPORTS FOR CERTAIN
PURPOSES RELATING TO CHILD SUPPORT.
Section 604(a) 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) In response to a request by the head of a
department, agency, or office of any State or any
political subdivision of any State that is responsible
under law for enforcing child support orders (or an
official authorized by the head of any such depart-
ment, agency, or office), if the person making the re-
quest certifies to the consumer reporting agency
that—
‘‘(A) the consumer report is needed to es-
tablish an individual’s capacity to make child
support payments, or to determine the appro-
priate level of such payments;
‘‘(B) the person has provided at least 10
days prior written notice to the consumer whose
report is requested, by certified or registered
mail to the last known address of the consumer,
that the report will be requested; and
‘‘(C) the consumer report obtained pursu-
ant to this paragraph will be kept confidential,
will be used solely for establishing child support
payment obligations, and will not be used in
connection with any other civil, administrative,
or criminal proceeding or for any other pur-
pose.’’.
SEC. 123. DISCLOSURE OF INFORMATION AND CONSUMER
REPORTS 
TO 
FBI 
FOR 
COUNTERINTEL-
LIGENCE PURPOSES.
(a) IN GENERAL.—The Fair Credit Reporting Act
(15 U.S.C. 1681 et seq.) is amended by adding after sec-
tion 624, as redesignated by section 113(a) of this Act,
the following new section:
‘‘§ 625. Disclosures to FBI for counterintelligence
purposes
‘‘(a) IDENTITY OF FINANCIAL INSTITUTIONS.—Not-
withstanding section 604 or any other provision of this
title, a consumer reporting agency shall furnish to the
Federal Bureau of Investigation the names and addresses
of all financial institutions (as that term is defined in sec-
tion 1101 of the Right to Financial Privacy Act of 1978)
at which a consumer maintains or has maintained an ac-
count, to the extent that information is in the files of the
agency, when presented with a written request for that
information, signed by the Director of the Federal Bureau
of Investigation, or the Director’s designee, which certifies
compliance with this section. The Director or the Direc-
tor’s designee may make such a certification only if the
Director or the Director’s designee has determined in writ-
ing that—
‘‘(1) such information is necessary for the con-
duct of an authorized foreign counterintelligence in-
vestigation; and
‘‘(2) there are specific and articulable facts giv-
ing reason to believe that the consumer—
‘‘(A) is a foreign power (as defined in sec-
tion 101 of the Foreign Intelligence Surveil-
lance Act of 1978) or a person who is not a
United States person (as defined in such sec-
tion 101) and is an official of a foreign power;
or
‘‘(B) is an agent of a foreign power and is
engaging or has engaged in international terror-
ism (as that term is defined in section 101(c)
of the Foreign Intelligence Surveillance Act of
1978) or clandestine intelligence activities that
involve or may involve a violation of criminal
statutes of the United States.
‘‘(b) IDENTIFYING INFORMATION.—Notwithstanding
the provisions of section 604 or any other provision of this
title, a consumer reporting agency shall furnish identifying
information respecting a consumer, limited to name, ad-
dress, former addresses, places of employment, or former
places of employment, to the Federal Bureau of Investiga-
tion when presented with a written request, signed by the
Director or the Director’s designee, which certifies compli-
ance with this subsection. The Director or the Director’s
designee may make such a certification only if the Director
or the Director’s designee has determined in writing
that—
‘‘(A) such information is necessary to the
conduct of an authorized counterintelligence in-
vestigation; and
‘‘(B) there is information giving reason to
believe that the consumer has been, or is about
to be, in contact with a foreign power or an
agent of a foreign power (as defined in section
101 of the Foreign Intelligence Surveillance Act
of 1978).
‘‘(c) COURT ORDER FOR DISCLOSURE OF CONSUMER
REPORTS.—Notwithstanding section 604 or any other
provision of this title, if requested in writing by the Direc-
tor of the Federal Bureau of Investigation, or a designee
of the Director, a court may issue an order ex parte direct-
ing 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) or clandestine intel-
ligence activities that involve or may involve a
violation of criminal statutes of the United
States.
The terms of an order issued under this subsection shall
not disclose that the order is issued for purposes of a
counterintelligence investigation.
‘‘(d) CONFIDENTIALITY.—No consumer reporting
agency or officer, employee, or agent of a consumer report-
ing agency shall disclose to any person, other than those
officers, employees, or agents of a consumer reporting
agency necessary to fulfill the requirement to disclose in-
formation to the Federal Bureau of Investigation under
this section, that the Federal Bureau of Investigation has
sought or obtained the identity of financial institutions or
a consumer report respecting any consumer under sub-
section (a), (b), or (c) and no consumer reporting agency
or officer, employee, or agent of a consumer reporting
agency shall include in any consumer report any informa-
tion that would indicate that the Federal Bureau of Inves-
tigation has sought or obtained such information or a
consumer report.
‘‘(e) PAYMENT OF FEES.—The Federal Bureau of
Investigation shall, subject to the availability of appropria-
tions, pay to the consumer reporting agency assembling
or providing reports or information in accordance with
procedures established under this section, a fee for reim-
bursement for such costs as are reasonably necessary and
which have been directly incurred in searching, reproduc-
ing, or transporting books, papers, records, or other data
required or requested to be produced under this section.
‘‘(f) LIMIT ON DISSEMINATION.—The Federal Bu-
reau of Investigation may not disseminate information ob-
tained pursuant to this section outside of the Federal Bu-
reau of Investigation, except to the Department of Justice
as may be necessary for the approval or conduct of a for-
eign counterintelligence investigation, or, where the infor-
mation concerns a person subject to the Uniform Code of
Military Justice, to appropriate investigative authorities
within the military department concerned as may be nec-
essary for the conduct of a joint foreign counterintel-
ligence investigation.
‘‘(g) RULES OF CONSTRUCTION.—Nothing in this
section shall be construed to prohibit information from
being furnished by the Federal Bureau of Investigation
pursuant to a subpoena or court order, or in connection
with a judicial or administrative proceeding to enforce the
provisions of this Act. Nothing in this section shall be con-
strued to authorize or permit the withholding or informa-
tion from the Congress.
‘‘(h) REPORTS
TO CONGRESS.—On a semiannual
basis, the Attorney General of the United States shall fully
inform the Permanent Select Committee on Intelligence
and the Committee on Banking, Finance and Urban Af-
fairs of the House of Representatives, and the Select Com-
mittee on Intelligence and the Committee on Banking,
Housing, and Urban Affairs of the Senate concerning all
requests made pursuant to subsections (a), (b), and (c).
‘‘(i) DAMAGES.—Any agency or department of the
United States obtaining or disclosing any consumer re-
ports, records, or information contained therein in viola-
tion of this section is liable to the consumer to whom such
consumer reports, records, or information relate in an
amount equal to the sum of—
‘‘(1) $100, without regard to the volume of
consumer reports, records, or information involved;
‘‘(2) any actual damages sustained by the
consumer as a result of the disclosure;
‘‘(3) if the violation is found to have been will-
ful or intentional, such punitive damages as a court
may allow; and
‘‘(4) in the case of any successful action to en-
force liability under this subsection, the costs of the
action, together with reasonable attorney fees, as de-
termined by the court.
‘‘(j) DISCIPLINARY ACTIONS FOR VIOLATIONS.—If a
court determines that any agency or department of the
United States has violated any provision of this section
and the court finds that the circumstances surrounding
the violation raise questions of whether or not an officer
or employee of the agency or department acted willfully
or intentionally with respect to the violation, the agency
or department shall promptly initiate a proceeding to de-
termine whether or not disciplinary action is warranted
against the officer or employee who was responsible for
the violation.
‘‘(k) GOOD-FAITH
EXCEPTION.—Notwithstanding
any other provision of this title, any consumer reporting
agency or agent or employee thereof making disclosure of
consumer reports or identifying information pursuant to
this subsection in good-faith reliance upon a certification
of the Federal Bureau of Investigation pursuant to provi-
sions of this section shall not be liable to any person for
such disclosure under this title, the constitution of any
State, or any law or regulation of any State or any politi-
cal subdivision of any State.
‘‘(l) LIMITATION
OF REMEDIES.—Notwithstanding
any other provision of this title, the remedies and sanc-
tions set forth in this section shall be the only judicial
remedies and sanctions for violation of this section.
‘‘(m) INJUNCTIVE RELIEF.—In addition to any other
remedy contained in this section, injunctive relief shall be
available to require compliance with the procedures of this
section. In the event of any successful action under this
subsection, costs together with reasonable attorney fees,
as determined by the court, may be recovered.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of the Fair Credit Reporting Act (15
U.S.C. 1681a et seq.), as amended by section 114(b) of
this Act, is further amended by adding after the item re-
lating to section 624 the following:
‘‘625. Disclosures to FBI for counterintelligence purposes.’’.
(c) REPEAL OF PROVISIONS.—The following provi-
sions of the Fair Credit Reporting Act, as amended by
this section, are repealed:
(1) Section 625.
(2) In the table of contents at the beginning of
the Fair Credit Reporting Act, the item relating to
section 625.
SEC. 124. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsection
(b), the amendments and repeals made by this title shall
take effect 365 days after the date of the enactment of
this Act.
(b) EXCEPTIONS.—
(1) The amendment made by section 121 shall
take effect 90 days after the date of the enactment
of this Act.
(2) The amendments made by subsections (a)
and (b) of section 123 shall take effect on the date
of the enactment of this Act.
(3) Subsection (c) of section 123 shall take ef-
fect on the date that is 5 years after the date of the
enactment of this Act.
SEC. 125. RELATIONSHIP TO OTHER LAW.
Nothing in this title or the amendments made by this
Act shall be considered to supersede or otherwise affect
section 2721 of title 18, United States Code, with respect
to motor vehicle records for surveys, marketing, or solici-
tations.
SEC. 126. SENSE OF SENATE.
It is the sense of the Senate that—
(1) individuals should generally be judged for
credit worthiness based on their own credit worthi-
ness and not on the zip code or neighborhood in
which they live; and
(2) the Federal Trade Commission after con-
sultation with the appropriate Federal banking agen-
cies shall report to the Committee on Banking,
Housing, and Urban Affairs of the Senate within 6
months as to whether and how the location of the
residence of an applicant for unsecured credit is con-
sidered by many companies and financial institutions
in deciding whether an applicant should be granted
credit.
SEC. 127. TECHNICAL CORRECTION TO DEPOSITORY INSTI-
TUTIONS MANAGEMENT INTERLOCKS ACT.
Section 209(c)(1)(C) of the Depository Institution
Management Interlocks Act (12 U.S.C. 3207(c)(1)(C), as
added by section 338(b) of the Riegle Community Devel-
opment and Regulatory Improvement Act of 1994) is
amended by inserting ‘‘or institutions’’ after ‘‘newly char-
tered institutions’’.
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;
‘‘(ii) any attorney-at-law who is a
member of the bar of the highest court of
any State or otherwise licensed under the
laws of any State, with respect to services
rendered which are within the scope of reg-
ulations applicable to members of such bar
or such licensees; or
‘‘(iii) any creditor (as defined in sec-
tion 103 of the Truth in Lending Act),
with respect to any consumer, to the extent
the creditor is assisting the consumer to
restructure any debt owed by the consumer
to the creditor.
‘‘(4) CREDIT.—The term ‘credit’ has the mean-
ing given to such term in section 103(e) of this Act.
‘‘SEC. 404. PROHIBITED PRACTICES.
‘‘(a) IN GENERAL.—No person may—
‘‘(1) make any statement, or counsel or advise
any consumer to make any statement, which is un-
true or misleading (or which, upon the exercise of
reasonable care, should be known by the credit re-
pair organization, officer, employee, agent, or other
person to be untrue or misleading) with respect to
any consumer’s creditworthiness, credit standing, or
credit capacity to—
‘‘(A) any consumer reporting agency (as
defined in section 603(f) of this Act); or
‘‘(B) any person—
‘‘(i) who has extended credit to the
consumer; or
‘‘(ii) to whom the consumer has ap-
plied or is applying for an extension of
credit;
‘‘(2) make any statement, or counsel or advise
any consumer to make any statement, the intended
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
100
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.
101
‘‘ ‘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.
102
‘‘(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—
103
‘‘(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
104
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
105
‘‘(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
106
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.
107
‘‘(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
108
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—
110
‘‘(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
111
‘‘(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-
tracts entered into by a credit repair organization before
the end of such period.’’.
112
TITLE III—TRUTH IN LENDING
ACT
SEC. 301. TREATMENT OF DELIVERY FEES AND INTANGI-
BLES TAXES.
(a) IN GENERAL.—Section 106(a) of the Truth in
Lending Act (15 U.S.C. 1605) is amended by adding at
the end the following new paragraph:
‘‘(6) Taxes levied on security instruments or on
documents evidencing indebtedness if such taxes
must be paid as a precondition to recording the in-
strument securing the evidence of indebtedness.’’.
(b) EXCLUDED FEES.—Section 106(e) of the Truth
in Lending Act (15 U.S.C. 1605(e)) is amended by insert-
ing ‘‘, if bona fide and reasonable’’ before the colon.
(c) FEES FOR DELIVERY CHARGES.—Section 106(e)
of the Truth in Lending Act (15 U.S.C. 1605(e)) is
amended by adding at the end the following new para-
graph:
‘‘(7) Fees for delivery charges imposed by third
parties (including settlement agents, attorneys, and
escrow and title companies) if the creditor does not
retain the charges and the fees do not exceed $20
per delivery, or $50 per consumer transaction.’’.
113
(d) APPLICABILITY.—The amendments made by this
section shall apply to all consumer credit transactions con-
summated on or after February 1, 1995.
SEC. 302. LIMITATIONS ON LIABILITY.
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by adding
at the end the following new section:
‘‘SEC. 139. CERTAIN LIMITATIONS ON LIABILITY.
‘‘(a) IN GENERAL.—For transactions consummated
prior to February 1, 1995, a creditor or assignee shall
have no civil or criminal liability under this title, nor shall
a consumer have extended rescission rights under section
125, due to a creditor’s improper disclosure of—
‘‘(1) delivery charges actually and reasonably
imposed by the creditor, or any delivery charges im-
posed by third parties (including settlement agents,
attorneys, and escrow and title companies), if the
creditor does not retain the charges; or
‘‘(2) taxes levied on security instruments or
documents evidencing indebtedness.
‘‘(b) APPLICABILITY.—Subsection (a) does not apply
to—
‘‘(1) any individual action or counterclaim
brought under this title filed prior to October 1,
114
1994, that alleged (prior to such date) improper dis-
closure of delivery charges or taxes;
‘‘(2) any class action brought under this title in
which a class was certified prior to October 1, 1994,
that alleged (prior to such date) improper disclosure
of delivery charges or taxes;
‘‘(3) the named individual plaintiffs in any class
action filed under this title prior to October 1, 1994,
that alleged (prior to such date) improper disclosure
of delivery charges or taxes; or
‘‘(4) any consumer credit transaction in which
a notice of rescission was sent to the creditor prior
to October 1, 1994.’’.
(b) AMENDMENT TO THE TABLE OF SECTIONS.—The
table of sections for chapter 2 of the Truth in Lending
Act is amended by inserting after the item relating to sec-
tion 138 the following:
‘‘139. Certain limitations on liability.’’.
TITLE IV—DISASTER RELIEF
SEC. 401. DEPOSITORY INSTITUTIONS DISASTER RELIEF.
(a) TRUTH IN LENDING ACT; EXPEDITED FUNDS
AVAILABILITY ACT.—
(1) TRUTH IN LENDING ACT.—During the 240-
day period beginning on the date of enactment of
this Act, the Board of Governors of the Federal Re-
serve System may make exceptions to the Truth in