IIB 
108TH CONGRESS 
1ST SESSION H. R. 2622
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 11, 2003
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To amend the Fair Credit Reporting Act, to prevent identity 
theft, improve resolution of consumer disputes, improve 
the accuracy of consumer records, make improvements 
in the use of, and consumer access to, credit information, 
and for other purposes.
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Fair and Accurate Credit Transactions Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act are as follows:
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
Sec. 3. Effective dates. 
TITLE I—UNIFORM NATIONAL CONSUMER PROTECTION 
STANDARDS 
Sec. 101. Uniform national consumer protection standards made permanent. 
TITLE II—IDENTITY THEFT PREVENTION 
Sec. 201. Investigating changes of address and inactive accounts. 
Sec. 202. Fraud alerts. 
Sec. 203. Truncation of credit card and debit card account numbers. 
Sec. 204. Summary of rights of identity theft victims. 
Sec. 205. Blocking of information resulting from identity theft. 
Sec. 206. Establishment of procedures for depository institutions to identify 
possible instances of identity theft. 
Sec. 207. Study on the use of technology to combat identity theft. 
TITLE III—IMPROVING RESOLUTION OF CONSUMER DISPUTES 
Sec. 301. Coordination of consumer complaint investigations. 
Sec. 302. Notice of dispute through reseller. 
Sec. 303. Reasonable investigation required. 
Sec. 304. Duties of furnishers of information. 
Sec. 305. Prompt investigation of disputed consumer information. 
TITLE IV—IMPROVING ACCURACY OF CONSUMER RECORDS 
Sec. 401. Reconciling addresses. 
Sec. 402. Prevention of repollution of consumer reports. 
Sec. 403. Notice by users with respect to fraudulent information. 
Sec. 404. Disclosure to consumers of contact information for users and fur-
nishers of information in consumer reports. 
Sec. 405. FTC study of the accuracy of consumer reports. 
TITLE V—IMPROVEMENTS IN USE OF AND CONSUMER ACCESS 
TO CREDIT INFORMATION 
Sec. 501. Free reports annually. 
Sec. 502. Disclosure of credit scores.
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Sec. 503. Simpler and easier method for consumers to use notification system. 
Sec. 504. Requirement to disclose communications to a consumer reporting 
agency. 
Sec. 505. Study of effects of credit scores and credit-based insurance scores on 
availability and affordability of financial products. 
Sec. 506. GAO study on disparate impact of credit system. 
Sec. 507. Analysis of further restrictions on offers of credit or insurance. 
Sec. 508. Study on the need and the means for improving financial literacy 
among consumers. 
Sec. 509. Disclosure of increase in APR under certain circumstances. 
TITLE VI—PROTECTING EMPLOYEE MISCONDUCT 
INVESTIGATIONS 
Sec. 601. Certain employee investigation communications excluded from defini-
tion of consumer report. 
TITLE VII—LIMITING THE USE AND SHARING OF MEDICAL 
INFORMATION IN THE FINANCIAL SYSTEM 
Sec. 701. Protection of medical information in the financial system. 
Sec. 702. Confidentiality of medical information in credit reports.
SEC. 2. DEFINITIONS. 
Section 603 of the Fair Credit Reporting Act (15 
U.S.C. 1681a) is amended by adding at the end the fol-
lowing new subsections: 
‘‘(r) RESELLER.—The term ‘reseller’ means a con-
sumer reporting agency that—
‘‘(1) assembles and merges information con-
tained in the database of another consumer report-
ing agency or multiple consumer reporting agencies 
concerning any consumer for purposes of furnishing 
such information to any third party, to the extent of 
such activities; and 
‘‘(2) does not maintain a database of the as-
sembled or merged information from which new con-
sumer reports are produced.
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‘‘(s) OTHER DEFINITIONS.—
‘‘(1) 
BOARD; 
CREDIT; 
CREDITOR; 
CREDIT 
CARD.—The terms ‘Board’, ‘credit’, ‘creditor’, and 
‘credit card’ have the same meanings as in section 
103 of the Truth in Lending Act. 
‘‘(2) COMMISSION.—The term ‘Commission’ 
means the Federal Trade Commission. 
‘‘(3) DEBIT
CARD.—The term ‘debit card’ 
means any card issued by a financial institution to 
a consumer for use in initiating electronic fund 
transfers (as defined in section 903(6) of the Elec-
tronic Fund Transfer Act) from the account (as de-
fined in such Act) of the consumer at such financial 
institution for the purpose of transferring money be-
tween accounts or obtaining money, property, labor, 
or services. 
‘‘(4) ELECTRONIC FUND TRANSFER.—The term 
‘electronic fund transfer’ has the same meaning as 
in section 903 of the Electronic Fund Transfer Act. 
‘‘(5) FEDERAL BANKING AGENCY.—The term 
‘Federal banking agency’ has the same meaning as 
in section 3 of the Federal Deposit Insurance Act.
‘‘(6) IDENTITY
THEFT.—The term ‘identity 
theft’ means a fraud committed using another per-
son’s identifying information, subject to such further
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definition as the Commission and the Board may 
prescribe, jointly, by regulation. 
‘‘(7) POLICE REPORT.—The term ‘police report’ 
means a copy of any official valid report filed by a 
consumer with any appropriate Federal, State, or 
local government law enforcement agency, or any 
comparable official government document that the 
Board and the Commission shall jointly prescribe in 
regulations, that is subject to a criminal penalty for 
false statements.’’.
SEC. 3. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as provided in subsections 
(b) and (c)—
(1) before the end of the 2-month period begin-
ning on the date of the enactment of this Act, the 
Board of Governors of the Federal Reserve System 
and the Federal Trade Commission shall jointly pre-
scribe regulations in final form establishing effective 
dates for each provision of this Act (except as other-
wise specified); and 
(2) the regulations prescribed under paragraph 
(1) shall establish effective dates that are as early 
as possible while allowing a reasonable time for the 
implementation of the provisions of this Act, but in 
no case shall the effective date be later than 10
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months after the date of issuance of such regula-
tions in final form. 
(b) IMMEDIATE EFFECTIVE DATE.—The following 
provisions shall take effect on the date of the enactment 
of this Act: 
(1) Title I. 
(2) Section 201. 
(3) Section 609(d)(1) of the Fair Credit Re-
porting Act (as added by the amendment in section 
204(a)). 
(4) Section 305. 
(5) Section 505. 
(6) Section 506. 
(7) Title VI. 
(c) EFFECTIVE DATE FOR PROTECTION OF MEDICAL 
INFORMATION IN THE FINANCIAL SYSTEM.—Section 701 
shall take effect at the end of the 180-day period begin-
ning on the date of the enactment of this Act, except that 
paragraph (2) of section 604(g) of the Fair Credit Report-
ing Act (as added by section 701) shall take effect on the 
later of—
(1) the end of the 90-day period beginning on 
the date the regulations required under paragraph 
(5)(B) of such section 604(g) (as added by section 
701) are prescribed in final form; or
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(2) the date specified in the regulations referred 
to in paragraph (1). 
(d) CRITERIA FOR ORDERLY IMPLEMENTATION OF 
FREE ANNUAL CREDIT REPORT PROVISION.—
(1) IN
GENERAL.—In developing the regula-
tions and effective dates under subsection (a) (and 
subject to the time limits in paragraph (2) and sub-
section (a)), the Federal Trade Commission and the 
Board of Governors of the Federal Reserve System 
shall provide a systematic approach for imple-
menting the amendment made by section 501 that 
allows for an orderly transition to the consumer re-
port distribution system required by the amendment 
in a manner that—
(A) does not temporarily overwhelm con-
sumer reporting agencies with requests for dis-
closures of consumer reports beyond their ca-
pacity to deliver; and 
(B) does not deny creditors, other users, 
and consumers access to consumer credit re-
ports on a time-sensitive basis for specific pur-
poses, such as home purchases or suspicions of 
identity theft, during the transition period. 
(2) PROHIBITION
ON
EXTENSION
OF
EFFEC-
TIVE DATE.—
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(A) 
ONE-TIME
AUTHORIZATION.—The 
Federal Trade Commission and the Board of 
Governors of the Federal Reserve System may 
exercise the authority provided under paragraph 
(1) only once during the 2-month period re-
ferred to in subsection (a)(1). 
(B) EXTENSION OF EFFECTIVE DATE PRO-
HIBITED.—No provision of this subsection shall 
be construed as extending, or authorizing the 
Federal Trade Commission or the Board of 
Governors of the Federal Reserve System to ex-
tend, the 2-month period referred to in sub-
section (a)(1) or the 10-month period referred 
to in subsection (a)(2) relating to the require-
ments imposed on consumer reporting agencies 
by the amendment made by section 501. 
TITLE 
I—UNIFORM 
NATIONAL 
CONSUMER 
PROTECTION 
STANDARDS 
SEC. 101. UNIFORM NATIONAL CONSUMER PROTECTION 
STANDARDS MADE PERMANENT. 
Section 624(d) of the Fair Credit Reporting Act (15 
U.S.C. 1681t(d)) is amended—
(1) by striking ‘‘Subsections (b) and (c)’’ and 
all that follows through ‘‘do not affect any settle-
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ment,’’ and inserting ‘‘Subsections (b) and (c) do 
not affect any settlement,’’; and 
(2) by striking ‘‘Consumer Credit Reporting 
Reform Act of 1996’’ and all that follows through 
the period at the end of paragraph (2) and inserting 
‘‘Consumer Credit Reporting Reform Act of 1996.’’. 
TITLE II—IDENTITY THEFT 
PREVENTION 
SEC. 201. INVESTIGATING CHANGES OF ADDRESS AND IN-
ACTIVE ACCOUNTS. 
(a) IN GENERAL.—Section 605 of the Fair Credit 
Reporting Act (15 U.S.C. 1681c) is amended by inserting 
after subsection (f), the following new subsection: 
‘‘(g) ‘RED FLAG’ PATTERNS OF POSSIBLE IDENTITY 
THEFT.—
‘‘(1) INVESTIGATION
OF
CHANGES
OF
AD-
DRESS.—The Federal banking agencies and the Na-
tional Credit Union Administration, in carrying out 
the responsibilities of such agencies and Administra-
tion under subsection (k), shall jointly prescribe reg-
ulations for credit card and debit card issuers to en-
sure that, if any such issuer receives a request for 
an additional or replacement card for an existing ac-
count within a short period of time after the issuer 
has received notification of a change of address for
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the same account, the issuer will follow reasonable 
policies and procedures that require, as appropriate, 
that the issuer not issue the additional or replace-
ment card unless the issuer—
‘‘(A) notifies the cardholder of the request 
at the former address of the cardholder and 
provides to the cardholder a means of promptly 
reporting incorrect address changes; 
‘‘(B) notifies the cardholder of the request 
by such other means of communication as the 
cardholder and the card issuer previously 
agreed to; or 
‘‘(C) uses other means of assessing the va-
lidity of the change of address, in accordance 
with reasonable policies and procedures estab-
lished by the card issuer in accordance with the 
regulations prescribed under subsection (k). 
‘‘(2) INACTIVE ACCOUNTS.—The Federal bank-
ing agencies and the National Credit Union Admin-
istration, in carrying out the responsibilities of such 
agencies and Administration under subsection (k), 
shall consider including, as a possible ‘red flag’ pat-
tern, reasonable guidelines providing that when a 
transaction occurs with respect to a credit or deposit 
account that has been inactive for more than 2
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years, the creditor or depository institution shall fol-
low reasonable policies and procedures that provide 
for notice to be given to a consumer in a manner 
reasonably designed to reduce the likelihood of iden-
tity theft with respect to such account.’’. 
(b) CLERICAL AMENDMENTS.—
(1) The heading for section 605 of the Fair 
Credit Reporting Act is amended to read as follows: 
‘‘§ 605. Requirements relating to information con-
tained in consumer reports and to iden-
tity theft prevention’’. 
(2) The table of sections for title VI of the Con-
sumer Credit Protection Act is amended by striking 
the item relating to section 605 and inserting the 
following new item:
‘‘605. Requirements relating to information contained in consumer reports and 
to identity theft prevention.’’.
(3) Section 624(b)(1)(E) of the Fair Credit Re-
porting Act (15 U.S.C. 1681t(b)(1)(E)) is amended 
by inserting ‘‘(and to specific identity theft preven-
tion subjects covered)’’ after ‘‘consumer reports’’. 
SEC. 202. FRAUD ALERTS. 
Section 605 of the Fair Credit Reporting Act (15 
U.S.C. 1681c) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(i) ONE-CALL FRAUD ALERTS.—
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‘‘(1) INITIAL ALERTS.—Upon the direct request 
of a consumer, or an individual acting on behalf of 
or as a personal representative of a consumer, who 
asserts, in good faith, a suspicion that the consumer 
has been or is about to become a victim of fraud or 
related crime, including identity theft, a consumer 
reporting agency described in section 603(p) shall, if 
the agency maintains a file on the consumer who is 
making the request and has a reasonable belief that 
the agency knows the identity of the consumer—
‘‘(A) include a fraud alert in the file of 
that consumer for a period of not less than 90 
days beginning on the date of such request, un-
less the consumer specifically requests that such 
fraud alert be removed before the end of such 
period; 
‘‘(B) disclose to the consumer that the con-
sumer may request a free copy of the file of the 
consumer and provide the consumer, upon re-
quest, a free disclosure of the consumer’s file 
(as described in section 609(a)) within 3 busi-
ness days after such request; 
‘‘(C) for 2 years after the date of such re-
quest, exclude the consumer from any list of 
consumers prepared by the agency and provided
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to any third party to offer credit or insurance 
to the consumer as part of a transaction that 
was not initiated by the consumer, unless the 
consumer subsequently requests that such ex-
clusion be rescinded before the end of such pe-
riod; and 
‘‘(D) refer the information regarding the 
fraud alert to each of the other consumer re-
porting agencies described in section 603(p), as 
required under section 621(f)(1). 
‘‘(2) EXTENDED ALERTS.—Upon the direct re-
quest of a consumer, or an individual acting on be-
half of or as a personal representative of a con-
sumer, who contacts a consumer reporting agency 
described in section 603(p) to report details of an 
identity theft and submits evidence that provides the 
agency with reasonable cause to believe that such 
identity theft has occurred, the agency shall, if the 
agency maintains a file on the consumer who is 
making the request and has a reasonable belief that 
the agency knows the identity of the consumer—
‘‘(A) include a fraud alert in the file of 
that consumer and provide an opportunity for 
the consumer to extend the alert for a period of 
up to 7 years from the date of such request,
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unless the consumer subsequently requests that 
such fraud alert be removed before the end of 
such period; 
‘‘(B) provide the consumer with the option 
of including more complete information in the 
consumer’s file, including a telephone number 
or some other reasonable means of communica-
tion that any person who requests the con-
sumer’s report may utilize for authorization be-
fore establishing a new credit plan in the name 
of the consumer; and 
‘‘(C) provide the consumer with at least 2 
free disclosures of the information described in 
section 609(a) during the 12-month period be-
ginning on the date of such request. 
‘‘(3) ACTIVE DUTY ALERTS.—Upon the direct 
request of an active duty military consumer, or an 
individual acting on behalf of or as a personal rep-
resentative of an active duty military consumer, who 
contacts a consumer reporting agency described in 
section 603(p), the agency shall, if the agency main-
tains a file on the consumer who is making the re-
quest and has a reasonable belief that the agency 
knows the identity of the consumer—
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‘‘(A) include an active duty alert in the file 
of that consumer during a period of not less 
than 12 months beginning on the date of the 
request, unless the consumer requests that such 
active duty alert be removed before the end of 
such period; 
‘‘(B) for 2 years after the date of such re-
quest, exclude the consumer from any list of 
consumers prepared by the agency and provided 
to any third party to offer credit or insurance 
to the consumer as part of a transaction that 
was not initiated by the consumer, unless the 
consumer subsequently requests that such ex-
clusion be rescinded before the end of such pe-
riod; and 
‘‘(C) refer the information regarding the 
active duty alert to each of the other consumer 
reporting agencies described in section 603(p), 
as required under section 621(f)(1). 
‘‘(4) PROCEDURES.—Each consumer reporting 
agency described in section 603(p) shall establish 
policies and procedures to comply with the obliga-
tions of paragraphs (1), (2), and (3), including pro-
cedures that allow consumers to request initial, ex-
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tended, or active duty alerts in a simple and easy 
manner, including by telephone. 
‘‘(5) NOTICE TO USERS.—No person who ob-
tains any information that includes a fraud alert 
under this section from a file of any consumer from 
a consumer reporting agency may establish a new 
credit plan in the name of the consumer for a person 
other than the consumer without utilizing reasonable 
policies and procedures described in paragraph (9). 
‘‘(6) REFERRALS
OF
FRAUD
ALERTS.—Each 
consumer reporting agency described in section 
603(p) that receives a referral of a fraud alert from 
another such agency pursuant to paragraph (1)(D) 
or (3)(C) shall follow the procedures required under 
subparagraphs (A), (B), and (C) of paragraph (1), 
in the case of a referral under paragraph (1)(D), 
and subparagraphs (A) and (B), in the case of a 
referral under paragraph (3)(C), as if the agency re-
ceived the request from the consumer directly. 
‘‘(7) DUTY
OF
RESELLER
TO
RECONVEY 
ALERT.—A reseller that is notified of the existence 
of a fraud alert in a consumer’s consumer report 
shall communicate to each person procuring a con-
sumer report with respect to such consumer the ex-
istence of a fraud alert in effect for such consumer.
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‘‘(8) DUTY OF OTHER CONSUMER REPORTING 
AGENCIES TO PROVIDE CONTACT INFORMATION.—If 
a consumer contacts any consumer reporting agency 
that is not a consumer reporting agency described in 
section 603(p) to communicate a suspicion that the 
consumer has been or is about to become a victim 
of fraud or related crime, including identity theft, 
the agency shall provide the consumer with informa-
tion on how to contact the Commission and the con-
sumer reporting agencies described in section 603(p) 
to obtain more detailed information and request 
alerts under this subsection. 
‘‘(9) FRAUD ALERT.—
‘‘(A) DEFINITION.—For purposes of this 
subsection, the term ‘fraud alert’ means, at a 
minimum, a statement—
‘‘(i) in the file of a consumer that the 
consumer may be a victim of fraud, includ-
ing identity theft, or is a consumer de-
scribed in paragraph (3); and 
‘‘(ii) that is transmitted in a manner 
that facilitates a clear and conspicuous 
view of the statement by any person re-
questing such file.
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‘‘(B) OTHER INFORMATION.—A fraud alert 
shall include information that notifies all pro-
spective users of a consumer report on the con-
sumer to which the alert relates that the con-
sumer does not authorize establishing any new 
credit plan in the name of the consumer, unless 
the user utilizes reasonable policies and proce-
dures to form a reasonable belief that the user 
knows the identity of the person for whom such 
new plan is established, which may include ob-
taining authorization or preauthorization of the 
consumer at a telephone number designated by 
the consumer or by such other reasonable 
means agreed to. 
‘‘(10) OTHER DEFINITIONS.—For purposes of 
this subsection, the following definitions shall apply: 
‘‘(A) 
ACTIVE
DUTY
MILITARY
CON-
SUMER.—The term ‘active duty military con-
sumer’ means a consumer in military service 
who—
‘‘(i) is on active duty (as defined in 
section 101(d)(1) of title 10, United States 
Code) or is a reservist performing duty 
under a call or order to active duty under 
a provision of law referred to in section
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101(a)(13) of title 10, United States Code; 
and 
‘‘(ii) is assigned to service away from 
the consumer’s usual duty station. 
‘‘(B) NEW CREDIT PLAN.—The term ‘new 
credit plan’ means a new account under an 
open end credit plan (as defined in section 
103(i) of this Act) or a new credit transaction 
not under an open end credit plan.’’. 
SEC. 203. TRUNCATION OF CREDIT CARD AND DEBIT CARD 
ACCOUNT NUMBERS. 
(a) IN GENERAL.—Section 605 of the Fair Credit 
Reporting Act (15 U.S.C. 1681c) is amended by inserting 
after subsection (k) (as added by section 206 of this title) 
the following new subsection: 
‘‘(l) TRUNCATION
OF CREDIT CARD
AND DEBIT 
CARD ACCOUNT NUMBERS.—
‘‘(1) IN GENERAL.—Except as provided in this 
subsection, no person that accepts credit cards or 
debit cards for the transaction of business shall 
print the expiration date or more than the last 5 
digits of the card number upon any receipt provided 
to the cardholder at the point of the sale or trans-
action.
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‘‘(2) LIMITATION.—This section shall apply 
only to receipts that are electronically printed, and 
shall not apply to transactions in which the sole 
means of recording the person’s credit card or debit 
card number is by handwriting or by an imprint or 
copy of the card.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply after the end of—
(1) the 3-year period beginning on the date of 
the enactment of this Act, with respect to any cash 
register or other machine or device that electroni-
cally prints receipts for credit card or debit card 
transactions that is in use before January 1, 2005; 
and 
(2) the 1-year period beginning on the date of 
the enactment of this Act, with respect to any cash 
register or other machine or device that electroni-
cally prints receipts for credit card or debit card 
transactions that is first put into use on or after 
January 1, 2005. 
SEC. 204. SUMMARY OF RIGHTS OF IDENTITY THEFT VIC-
TIMS. 
(a) IN GENERAL.—Section 609 of the Fair Credit 
Reporting Act (15 U.S.C. 1681g) is amended by adding 
at the end the following new subsection:
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‘‘(d) SUMMARY OF RIGHTS OF IDENTITY THEFT VIC-
TIMS.—
‘‘(1) IN GENERAL.—The Commission, in con-
sultation with the Federal banking agencies and the 
National Credit Union Administration, shall prepare 
a model summary of the rights of consumers under 
this title with respect to the procedures for rem-
edying the effects of fraud or identity theft involving 
credit, electronic fund transfers, or accounts or 
transactions at or with a financial institution. 
‘‘(2) SUMMARY OF RIGHTS AND CONTACT IN-
FORMATION.—If any consumer contacts a consumer 
reporting agency and expresses a belief that the con-
sumer is a victim of fraud or identity theft involving 
credit, electronic fund transfers, or accounts or 
transactions at or with a financial institution, the 
consumer reporting agency shall, in addition to any 
other action the agency may take, provide the con-
sumer with a summary of rights, or other disclosure, 
that is the same as or substantially similar to the 
model summary of rights prepared by the Commis-
sion under paragraph (1) and information on how to 
contact the Commission to obtain more detailed in-
formation.’’.
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(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 624(b)(3) of the Fair Credit Reporting Act (15 
U.S.C. 1681t(b)(3)) is amended by striking ‘‘section 
609(c)’’ and inserting ‘‘subsection (c) or (d) of section 
609’’. 
(c) EFFECTIVE DATE.—Paragraph (2) of section 
609(d) of the Fair Credit Reporting Act (as added by sub-
section (a) of this section) shall apply after the end of the 
60-day period beginning on the date the model summary 
of rights is prescribed in final form by the Federal Trade 
Commission pursuant to paragraph (1) of such section 
and in accordance with section 3(a) of this Act. 
SEC. 205. BLOCKING OF INFORMATION RESULTING FROM 
IDENTITY THEFT. 
Section 605 of the Fair Credit Reporting Act (15 
U.S.C. 1681c) is amended by inserting after subsection 
(i) (as added by section 202 of this title) the following 
new subsection: 
‘‘(j) BLOCK
OF INFORMATION RESULTING FROM 
IDENTITY THEFT.—
‘‘(1) BLOCK.—Except as provided in paragraph 
(3), a consumer reporting agency shall block the re-
porting of any information in the file of a consumer 
that the consumer identifies as information that re-
sulted from an alleged identity theft and confirms is
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not information relating to any transaction by the 
consumer not later than 5 business days after the 
date of receipt by such agency of—
‘‘(A) appropriate proof of the identity of a 
consumer; 
‘‘(B) a police report evidencing the claim 
of the consumer of identity theft; 
‘‘(C) the identification of the information 
by the consumer; and 
‘‘(D) confirmation by the consumer that 
the information is not information relating to 
any transaction by the consumer. 
‘‘(2) NOTIFICATION.—A consumer reporting 
agency shall promptly notify the furnisher of infor-
mation identified by the consumer under paragraph 
(1)—
‘‘(A) that the information may be a result 
of identity theft; 
‘‘(B) that a police report has been filed; 
‘‘(C) that a block has been requested under 
this subsection; and 
‘‘(D) of the effective date of the block. 
‘‘(3) AUTHORITY TO DECLINE OR RESCIND.—
‘‘(A) IN GENERAL.—A consumer reporting 
agency may decline to block, or may rescind
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any block, of consumer information under this 
subsection if the consumer reporting agency 
reasonably determines that—
‘‘(i) the information was blocked in 
error or a block was requested by the con-
sumer in error; 
‘‘(ii) the information was blocked, or a 
block was requested by the consumer, on 
the basis of a misrepresentation of fact by 
the consumer relevant to the request to 
block; or 
‘‘(iii) the consumer knowingly ob-
tained possession of goods, services, or 
moneys as a result of the blocked trans-
action or transactions, or the consumer 
should have known that the consumer ob-
tained possession of goods, services, or 
moneys as a result of the blocked trans-
action or transactions. 
‘‘(B) NOTIFICATION
TO
CONSUMER.—If 
the block of information is declined or rescinded 
under this paragraph, the affected consumer 
shall be notified promptly, in the same manner 
as consumers are notified of the reinsertion of 
information under section 611(a)(5)(B).
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‘‘(C) SIGNIFICANCE OF BLOCK.—For pur-
poses of this paragraph, if a consumer report-
ing agency rescinds a block, the presence of in-
formation in the file of a consumer prior to the 
blocking of such information is not evidence of 
whether the consumer knew or should have 
known that the consumer obtained possession of 
any goods, services, or monies as a result of the 
block. 
‘‘(4) EXCEPTIONS.—
‘‘(A) 
VERIFICATION
COMPANIES.—This 
subsection shall not apply to—
‘‘(i) a check services company, which 
issues authorizations for the purpose of ap-
proving or processing negotiable instru-
ments, electronic funds transfers, or simi-
lar methods of payments; or 
‘‘(ii) a deposit account information 
service company, which issues reports re-
garding account closures due to fraud, sub-
stantial overdrafts, automated teller ma-
chine abuse, or similar negative informa-
tion regarding a consumer, to inquiring 
banks or other financial institutions for 
use only in reviewing a consumer request
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for a deposit account at the inquiring bank 
or financial institution. 
‘‘(B) RESELLERS.—
‘‘(i) NO RESELLER FILE.—This sub-
section shall not apply to a consumer re-
porting agency if the consumer reporting 
agency—
‘‘(I) is a reseller; 
‘‘(II) is not, at the time of the re-
quest of the consumer under para-
graph (1), otherwise furnishing or re-
selling a consumer report concerning 
the information identified by the con-
sumer; and 
‘‘(III) informs the consumer, by 
any means, that the consumer may re-
port the identity theft to the Commis-
sion to obtain consumer information 
regarding identity theft. 
‘‘(ii) RESELLER
WITH
FILE.—The 
sole obligation of the consumer reporting 
agency under this subsection, with regard 
to any request of a consumer under this 
subsection, shall be to block the consumer
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report maintained by the consumer report-
ing agency from any subsequent use if—
‘‘(I) the consumer, in accordance 
with the provisions of paragraph (1), 
identifies, to a consumer reporting 
agency, information in the file of the 
consumer that resulted from identity 
theft; and 
‘‘(II) the consumer reporting 
agency is a reseller of the identified 
information. 
‘‘(iii) NOTICE.—In carrying out its 
obligation under clause (ii), the reseller 
shall promptly provide a notice to the con-
sumer of the decision to block the file. 
Such notice shall contain the name, ad-
dress, and telephone number of each con-
sumer reporting agency from which the
consumer information was obtained for re-
sale. 
‘‘(5) ACCESS
TO
BLOCKED
INFORMATION
BY 
LAW
ENFORCEMENT
AGENCIES.—No provision of 
this subsection shall be construed as requiring a con-
sumer reporting agency to prevent a Federal, State, 
or local law enforcement agency from accessing
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blocked information in a consumer file to which the 
agency could otherwise obtain access under this 
title.’’. 
SEC. 206. ESTABLISHMENT OF PROCEDURES FOR DEPOSI-
TORY INSTITUTIONS TO IDENTIFY POSSIBLE 
INSTANCES OF IDENTITY THEFT. 
(a) IN GENERAL.—Section 605 of the Fair Credit 
Reporting Act (15 U.S.C. 1681c) is amended by inserting 
after subsection (j) (as added by section 205 of this title) 
the following new subsection: 
‘‘(k) ‘RED FLAG’ GUIDELINES REQUIRED.—
‘‘(1) IN GENERAL.—The Federal banking agen-
cies and the National Credit Union Administration, 
in consultation with the Commission, shall jointly es-
tablish and maintain guidelines for use by insured 
depository institutions in identifying patterns, prac-
tices, and specific forms of activity that indicate the 
possible existence of identity theft with respect to ac-
counts, and update such guidelines as often as nec-
essary. 
‘‘(2) REGULATIONS.—The Federal banking 
agencies and the National Credit Union Administra-
tion, in consultation with the Commission, shall 
jointly prescribe regulations requiring insured depos-
itory institutions to establish and adhere to reason-
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able policies and procedures for implementing the 
guidelines established pursuant to paragraph (1) to 
identify possible risks to customer accounts or to the 
safety and soundness of the institutions.
‘‘(3) CONSISTENCY
WITH
VERIFICATION
RE-
QUIREMENTS.—Policies and procedures established 
pursuant to paragraph (2) shall not be inconsistent 
with the policies and procedures required under sec-
tion 5318(l) of title 31, United States Code. 
‘‘(4) INSURED
DEPOSITORY
INSTITUTION
DE-
FINED.—For purposes of this subsection, the term 
‘insured depository institution’—
‘‘(A) has the meaning given to such term 
in section 3 of the Federal Deposit Insurance 
Act; and 
‘‘(B) includes an insured credit union (as 
defined in section 101 of the Federal Credit 
Union Act).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect at the end of the 1-year 
period beginning on the date of the enactment of this Act. 
SEC. 207. STUDY ON THE USE OF TECHNOLOGY TO COMBAT 
IDENTITY THEFT. 
(a) STUDY REQUIRED.—The Secretary of the Treas-
ury shall conduct a study of the use of biometrics and
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other similar technologies to reduce the incidence and 
costs of identity theft by providing convincing evidence of 
who actually performed a given financial transaction. 
(b) CONSULTATION.—The Secretary of the Treasury 
shall consult with Federal banking agencies, the Federal 
Trade Commission, and representatives of financial insti-
tutions, consumer reporting agencies, Federal, State, and 
local government agencies that issue official forms or 
means of identification, State prosecutors, law enforce-
ment agencies, the biometric industry, and the general 
public in formulating and conducting the study required 
by subsection (a). 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of the 
Treasury for fiscal year 2004 such sums as may be nec-
essary to carry out the provisions of this section. 
(d) REPORT REQUIRED.—Before the end of the 180-
day period beginning on the date of the enactment of this 
Act, the Secretary shall submit a report to Congress con-
taining the findings and conclusions of the study required 
under subsection (a), together with such recommendations 
for legislative or administrative actions as may be appro-
priate.
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TITLE III—IMPROVING RESOLU-
TION 
OF 
CONSUMER 
DIS-
PUTES 
SEC. 301. COORDINATION OF CONSUMER COMPLAINT IN-
VESTIGATIONS. 
Section 621 of the Fair Credit Reporting Act (15 
U.S.C. 1681s) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(f) COORDINATION OF CONSUMER COMPLAINT IN-
VESTIGATIONS.—
‘‘(1) IN
GENERAL.—The consumer reporting 
agencies described in section 603(p) shall develop 
and maintain procedures for the referral, to each 
such agency, of any consumer complaint received by 
any such agency alleging any identity theft or re-
questing a block or a fraud alert. 
‘‘(2) MODEL FORM AND PROCEDURE FOR RE-
PORTING
IDENTITY
THEFT.—The Commission, in 
consultation with the Federal banking agencies and 
the National Credit Union Administration, shall de-
velop a model form and model procedures to be used 
by consumers who are victims of identity theft for 
contacting and informing creditors and consumer re-
porting agencies of the fraud.
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‘‘(3) ANNUAL SUMMARY REPORTS.—Each con-
sumer reporting agency described in section 603(p) 
shall submit an annual summary report to the Com-
mission on consumer complaints received by the 
agency on identity theft or fraud alerts.’’. 
SEC. 302. NOTICE OF DISPUTE THROUGH RESELLER. 
(a) REQUIREMENT FOR REINVESTIGATION OF DIS-
PUTED
INFORMATION
UPON
NOTICE
FROM
A
RE-
SELLER.—Section 611(a) of the Fair Credit Reporting 
Act (15 U.S.C. 1681i(a)(1)(A)) is amended—
(1) in subparagraph (A) of paragraph (1)—
(A) by striking ‘‘If the completeness’’ and 
inserting ‘‘Subject to subsection (e), if the com-
pleteness’’; 
(B) by inserting ‘‘, or indirectly through a 
reseller,’’ after ‘‘notifies the agency directly’’; 
and 
(C) by inserting ‘‘or reseller’’ before the 
period at the end of such subparagraph; 
(2) in subparagraph (A) of paragraph (2)—
(A) by inserting ‘‘or a reseller’’ after ‘‘dis-
pute from any consumer’’; and 
(B) by inserting ‘‘or reseller’’ before the 
period at the end of such subparagraph; and
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(3) in subparagraph (B) of paragraph (2), by 
inserting ‘‘or the reseller’’ after ‘‘from the con-
sumer’’.
(b) REINVESTIGATION REQUIREMENT APPLICABLE 
TO RESELLERS.—Section 611 of the Fair Credit Report-
ing Act (15 U.S.C. 1681i) is amended by adding at the 
end the following new subsection: 
‘‘(e) REINVESTIGATION REQUIREMENT APPLICABLE 
TO RESELLERS.—
‘‘(1) EXEMPTION
FROM
GENERAL
REINVES-
TIGATION
REQUIREMENT.—Except as provided in 
paragraph (2), a reseller shall be exempt from the 
requirements of this section. 
‘‘(2) ACTION REQUIRED UPON RECEIVING NO-
TICE OF A DISPUTE.—If a reseller receives a notice 
from a consumer of a dispute concerning the com-
pleteness or accuracy of any item of information 
contained in a consumer report on such consumer 
produced by the reseller, the reseller shall, within 5 
business days of receiving the notice and free of 
charge—
‘‘(A) determine whether the item of infor-
mation is incomplete or inaccurate as a result 
of an act or omission of the reseller; and 
‘‘(B) if—
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‘‘(i) the reseller determines that the 
item of information is incomplete or inac-
curate as a result of an act or omission of 
the reseller, correct the information in the 
consumer report or delete it; or 
‘‘(ii) if the reseller determines that the 
item of information is not incomplete or in-
accurate as a result of an act or omission 
of the reseller, convey the notice of the dis-
pute, together with all relevant information 
provided by the consumer, to each con-
sumer reporting agency that provided the 
reseller with the information that is the 
subject of the dispute, using an address or 
a notification mechanism specified by the 
consumer reporting agency for such no-
tices. 
‘‘(3) RESELLER REINVESTIGATIONS.—No provi-
sion of this subsection shall be construed as prohib-
iting a reseller from conducting a reinvestigation of 
a consumer dispute directly.’’. 
(c) TECHNICAL AND CONFORMING AMENDMENT.—
The heading for paragraph (2)(B) of section 611(a) of the 
Fair Credit Reporting Act (15 U.S.C. 1681i(a)(2)(B)) is 
amended by striking ‘‘FROM CONSUMER’’.
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SEC. 303. REASONABLE REINVESTIGATION REQUIRED. 
Section 611(a)(1)(A) of the Fair Credit Reporting 
Act (15 U.S.C. 1681i(a)(1)(A)) is amended by striking 
‘‘shall reinvestigate free of charge’’ and inserting ‘‘shall, 
free of charge, conduct a reasonable reinvestigation to de-
termine whether the disputed information is inaccurate’’. 
SEC. 304. DUTIES OF FURNISHERS OF INFORMATION. 
(a) IN GENERAL.—Section 623(a) of the Fair Credit 
Reporting Act (15 U.S.C. 1681s–2(a)) is amended—
(1) in paragraph (1)(A), by striking ‘‘knows or 
consciously avoids knowing that the information is 
inaccurate’’ and inserting ‘‘knows or has reasonable 
cause to believe that the information is inaccurate’’; 
(2) in paragraph (1)—
(A) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (D), respec-
tively; 
(B) by inserting after subparagraph (A), 
the following new subparagraph: 
‘‘(B) REASONABLE
PROCEDURES
TO
EN-
SURE ACCURACY.—A person that regularly fur-
nishes information relating to consumers to a 
consumer reporting agency described in section 
603(p) shall maintain reasonable procedures de-
signed to ensure that the information furnished 
is accurate.’’; and
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(C) by adding at the end the following new 
subparagraph: 
‘‘(F) DEFINITION.—For purposes of sub-
paragraph (A), the term ‘reasonable cause to 
believe that the information is inaccurate’ 
means, based on the procedures described in 
subparagraph (B), has knowledge, other than 
solely allegations by the consumer, that would 
cause a reasonable person to have substantial 
doubts about the accuracy of the information.’’; 
and 
(3) by adding at the end the following new 
paragraph: 
‘‘(6) ABILITY OF CONSUMER TO DISPUTE IN-
FORMATION DIRECTLY WITH FURNISHER.—
‘‘(A) IN GENERAL.—A consumer may dis-
pute directly with a person the accuracy of in-
formation that—
‘‘(i) is contained in a consumer report 
on the consumer prepared by a consumer 
reporting agency described in section 
603(p); and 
‘‘(ii) was provided by the person to 
that consumer reporting agency in accord-
ance with paragraph (1)(B).
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‘‘(B) SUBMITTING
A
NOTICE
OF
DIS-
PUTE.—A consumer who seeks to dispute the 
accuracy of information with a person under 
subparagraph (A) shall provide a dispute notice 
directly to such person at the address specified 
by the person for such notices that—
‘‘(i) identifies the specific information 
that is being disputed; and 
‘‘(ii) explains the basis for the dis-
pute. 
‘‘(C) DUTY OF PERSON AFTER RECEIVING 
NOTICE OF DISPUTE.—After receiving a notice 
of dispute from a consumer pursuant to sub-
paragraph (B), the person that provided the in-
formation in dispute to a consumer reporting 
agency referred to in subparagraph (A) shall—
‘‘(i) conduct an investigation with re-
spect to the disputed information; 
‘‘(ii) review all relevant information 
provided by the consumer with the notice; 
‘‘(iii) complete such person’s inves-
tigation of the dispute and report the re-
sults of the investigation to the consumer 
before the expiration of the period under 
section 611(a)(1) within which a consumer
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reporting agency would be required to com-
plete its action if the consumer had elected 
to dispute the information under that sec-
tion; and 
‘‘(iv) if the investigation finds that the 
information 
reported 
was 
inaccurate, 
promptly notify each consumer reporting 
agency described in section 603(p) to 
which the person furnished the inaccurate 
information of that determination and pro-
vide to the agency any correction to that 
information that is necessary to make the 
information provided by the person accu-
rate. 
‘‘(D) FRIVOLOUS
OR
IRRELEVANT
DIS-
PUTE.—
‘‘(i) IN GENERAL.—The requirements 
of this paragraph shall not apply if the 
person receiving a notice of a dispute from 
a consumer reasonably determines that the 
dispute is frivolous or irrelevant, includ-
ing—
‘‘(I) by reason of the failure of a 
consumer to provide sufficient infor-
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mation to investigate the disputed in-
formation; or 
‘‘(II) the submission by a con-
sumer of a dispute that is substan-
tially the same as a dispute previously 
submitted by or for the consumer, ei-
ther directly to the person under this 
paragraph or through a consumer re-
porting agency under subsection (b), 
with respect to which the person has 
already performed the person’s duties 
under this paragraph or subsection 
(b), as applicable. 
‘‘(ii) NOTICE OF DETERMINATION.—
Upon making any determination under 
clause (i) that a dispute is frivolous or ir-
relevant, the person shall notify the con-
sumer of such determination not later than 
5 business days after making such deter-
mination, by mail or, if authorized by the 
consumer for that purpose, by any other 
means available to the person. 
‘‘(iii) CONTENTS OF NOTICE.—A no-
tice under clause (ii) shall include—
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‘‘(I) the reasons for the deter-
mination under clause (i); and 
‘‘(II) identification of any infor-
mation required to investigate the dis-
puted information, which may consist 
of a standardized form describing the 
general nature of such information.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 621(c)(5)(A) of the Fair Credit Re-
porting Act (15 U.S.C. 1681s(c)(5)(A)) is amended 
by striking ‘‘section 623(a)(1)’’ and inserting ‘‘para-
graph (1) or (6) of section 623(a)’’. 
(2) The heading for section 621(c)(5) of the 
Fair Credit Reporting Act (15 U.S.C. 1681s(c)(5)) 
is amended by striking ‘‘VIOLATION
OF
SECTION 
623(a)(1)’’ and inserting ‘‘CERTAIN VIOLATIONS OF 
SECTION 623(a)’’. 
SEC. 305. PROMPT INVESTIGATION OF DISPUTED CON-
SUMER INFORMATION. 
(a) STUDY REQUIRED.—The Board of Governors of 
the Federal Reserve System and the Federal Trade Com-
mission shall jointly study the extent to which, and the 
manner in which, consumer reporting agencies and fur-
nishers of consumer information to consumer reporting 
agencies are complying with the procedures, time lines,
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and requirements under the Fair Credit Reporting Act for 
the prompt investigation of the disputed accuracy of any 
consumer information, the completeness of the informa-
tion provided to consumer reporting agencies, and the 
prompt correction or deletion, in accordance with such 
Act, of any inaccurate or incomplete information or infor-
mation that cannot be verified. 
(b) REPORT REQUIRED.—Before the end of the 6-
month period beginning on the date of the enactment of 
this Act, the Board of Governors of the Federal Reserve 
System and the Federal Trade Commission shall jointly 
submit a progress report to the Congress on the results 
of the study required under subsection (a). 
(c) RECOMMENDATIONS.—The report under sub-
section (b) shall include such recommendations as the 
Board and the Commission jointly determine to be appro-
priate for legislative or administrative action to ensure 
that—
(1) consumer disputes with consumer reporting 
agencies over the accuracy or completeness of infor-
mation in a consumer’s file are promptly and fully 
investigated and any incorrect, incomplete, or un-
verifiable information is corrected or deleted imme-
diately thereafter;
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(2) furnishers of information to consumer re-
porting agencies maintain full and prompt compli-
ance with the duties and responsibilities established 
under section 623 of the Fair Credit Reporting Act; 
and 
(3) consumer reporting agencies establish and 
maintain appropriate internal controls and manage-
ment review procedures for maintaining full and 
continuous compliance with the procedures, time 
lines, and requirements under the Fair Credit Re-
porting Act for the prompt investigation of the dis-
puted accuracy of any consumer information and the 
prompt correction or deletion, in accordance with 
such Act, of any inaccurate or incomplete informa-
tion or information that cannot be verified. 
(d) DEFINITIONS.—For purposes of this section, the 
terms ‘‘consumer’’, ‘‘consumer report’’, and ‘‘consumer re-
porting agency’’ have the same meaning as in the Fair 
Credit Reporting Act. 
TITLE 
IV—IMPROVING 
ACCU-
RACY 
OF 
CONSUMER 
RECORDS
SEC. 401. RECONCILING ADDRESSES. 
Section 605 of the Fair Credit Reporting Act (15 
U.S.C. 1681c) is amended by inserting after subsection
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(g) (as added by section 201 of this Act) the following 
new subsection. 
‘‘(h) NOTICE OF DISCREPANCY.—
‘‘(1) IN GENERAL.—If a person has requested 
a consumer report relating to a consumer from a 
consumer reporting agency described in section 
603(p), the request includes an address for the con-
sumer that substantially differs from the addresses 
in the file of the consumer, and the agency provides 
a consumer report in response to the request, the 
consumer reporting agency shall notify the requester 
of the existence of the discrepancy. 
‘‘(2) REGULATIONS.—
‘‘(A) REGULATIONS REQUIRED.—The Fed-
eral banking agencies and the National Credit 
Union Administration shall jointly prescribe 
regulations providing guidance regarding rea-
sonable policies and procedures a user of a con-
sumer report should employ when such user has 
received a notice of discrepancy under para-
graph (1). 
‘‘(B) POLICIES AND PROCEDURES TO BE 
INCLUDED.—The regulations prescribed under 
subparagraph (A) shall describe reasonable poli-
HR 2622 RFS 
cies and procedures for use by a user of a con-
sumer report—
‘‘(i) to form a reasonable belief that 
the user knows the identity of the person 
to whom the consumer report pertains; and 
‘‘(ii) if the user establishes a con-
tinuing relationship with the consumer, 
and the user regularly and in the ordinary 
course of business furnishes information to 
the consumer reporting agency from which 
the notice of discrepancy pertaining to the 
consumer was obtained, to reconcile the 
consumer’s address with the consumer re-
porting agency by furnishing such address 
to such consumer reporting agency as part 
of information regularly furnished by the 
user for the period in which the relation-
ship is established.’’.
SEC. 402. PREVENTION OF REPOLLUTION OF CONSUMER 
REPORTS. 
Section 623(a)(1) of the Fair Credit Reporting Act 
(15 U.S.C. 1681s–2(a)(1)) is amended by inserting after 
subparagraph (D) (as so redesignated by section 
304(2)(A)) the following new subparagraph:
HR 2622 RFS 
‘‘(E) INFORMATION ALLEGED TO RESULT 
FROM IDENTITY THEFT.—If a consumer sub-
mits a police report to a person who furnishes 
information to a consumer reporting agency 
that states that information maintained by such 
person that purports to relate to the consumer 
resulted from identity theft, the person may not 
furnish such information that purports to relate 
to the consumer to any consumer reporting 
agency, unless the person subsequently knows 
or is informed by the consumer that the infor-
mation is correct.’’. 
SEC. 403. NOTICE BY USERS WITH RESPECT TO FRAUDU-
LENT INFORMATION. 
Section 615 of the Fair Credit Reporting Act (15 
U.S.C. 1681m) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(e) NOTICE OF FRAUDULENT INFORMATION RE-
LATING TO IDENTITY THEFT.—If an agent acting as a 
debt collector (as defined in title VIII) of a person who 
furnishes information to any consumer reporting agency 
uses information contained in a consumer report on any 
consumer and learns that any such information so used 
is the result of identity theft or otherwise is fraudulent, 
the agent shall—
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‘‘(1) if such information—
‘‘(A) originated from the person for whom 
the debt collector is acting as agent, notify the 
person of the fraudulent information; or 
‘‘(B) originated from a person other than 
the person for whom the debt collector is acting 
as agent, notify the consumer reporting agency 
(that provided the consumer report) of the 
fraudulent 
information, 
either 
directly 
or 
through the person for whom the debt collector 
is acting as agent; and 
‘‘(2) upon the request of the consumer, provide 
the consumer with all information which the con-
sumer would be entitled to receive if the information 
related to the consumer other than by reason of 
identity theft.’’.
SEC. 404. DISCLOSURE TO CONSUMERS OF CONTACT IN-
FORMATION FOR USERS AND FURNISHERS 
OF INFORMATION IN CONSUMER REPORTS. 
Section 609(a) of the Fair Credit Reporting Act (15 
U.S.C. 1681g(a)) is amended—
(1) in paragraph (2), by inserting ‘‘, including 
addresses of the sources, and (if provided by the 
sources of information) the telephone numbers iden-
tified for customer service for the sources of infor-
HR 2622 RFS 
mation’’ after ‘‘sources of information’’ the 1st place 
such term appears in such paragraph; and 
(2) in paragraph (3)(B) by striking clause (ii) 
and inserting the following new clause: 
‘‘(ii) the address and (if provided) the 
telephone numbers identified for customer 
service of the person.’’.
SEC. 405. FTC STUDY OF THE ACCURACY OF CONSUMER RE-
PORTS. 
(a) STUDY REQUIRED.—Until the final report is sub-
mitted under subsection (b)(2), the Federal Trade Com-
mission shall conduct an ongoing study of the accuracy 
and completeness of information contained in consumer 
reports prepared or maintained by consumer reporting 
agencies and methods for improving the accuracy and 
completeness of such information. 
(b) BIENNIAL REPORTS REQUIRED.—
(1) INTERIM
REPORTS.—The Federal Trade 
Commission shall submit an interim report to the 
Congress on the study conducted under subsection 
(a) at the end of the 6-month period beginning on 
the date of the enactment of this Act and biennially 
thereafter for 8 years. 
(2) FINAL REPORT.—The Federal Trade Com-
mission shall submit a final report to the Congress
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on the study conducted under subsection (a) at the 
end of the 2-year period beginning on the date the 
final interim report is submitted to the Congress 
under paragraph (1). 
(3) CONTENTS.—Each report submitted under 
this subsection shall contain a detailed summary of 
the findings and conclusions of the Commission with 
respect to the study required under subsection (a) 
and such recommendations for legislative and ad-
ministrative action as the Commission may deter-
mine to be appropriate. 
TITLE 
V—IMPROVEMENTS 
IN 
USE OF AND CONSUMER AC-
CESS TO CREDIT INFORMA-
TION 
SEC. 501. FREE REPORTS ANNUALLY. 
Section 612 of the Fair Credit Reporting Act (15 
U.S.C. 1681j) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(e) FREE ANNUAL DISCLOSURE.—Upon the direct 
request of the consumer, a consumer reporting agency 
that compiles and maintains files on consumers on a na-
tionwide or regional basis shall make all disclosures pursu-
ant to section 609 once during any 12-month period with-
out charge to the consumer.’’.
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SEC. 502. DISCLOSURE OF CREDIT SCORES. 
(a) STATEMENT
ON
AVAILABILITY
OF
CREDIT 
SCORES.—Section 609(a) of the Fair Credit Reporting 
Act (15 U.S.C. 1681g(a)) is amended by adding at the 
end the following new paragraph: 
‘‘(6) If the consumer requests the credit file 
and not the credit score, a statement that the con-
sumer may request and obtain a credit score.’’. 
(b) DISCLOSURE OF CREDIT SCORES.—Section 609 
of the Fair Credit Reporting Act (15 U.S.C. 1681g) is 
amended by inserting after subsection (d) (as added by 
section 204 of this Act) the following new subsection: 
‘‘(e) DISCLOSURE OF CREDIT SCORES.—
‘‘(1) IN GENERAL.—Upon the consumer’s re-
quest for a credit score, a consumer reporting agen-
cy shall supply to a consumer a statement indicating 
that the information and credit scoring model may 
be different than the credit score that may be used 
by the lender, and a notice which shall include the 
following information: 
‘‘(A) The consumer’s current credit score 
or the consumer’s most recent credit score that 
was previously calculated by the credit report-
ing agency for a purpose related to the exten-
sion of credit.
HR 2622 RFS 
‘‘(B) The range of possible credit scores 
under the model used. 
‘‘(C) All the key factors that adversely af-
fected the consumer’s credit score in the model 
used, the total number of which shall not ex-
ceed four, subject to paragraph (9). 
‘‘(D) The date the credit score was cre-
ated. 
‘‘(E) The name of the person or entity 
that provided the credit score or credit file upon 
which the credit score was created. 
‘‘(2) DEFINITIONS.—For purposes of this sec-
tion, the following definitions shall apply: 
‘‘(A) CREDIT
SCORE.—The term ‘credit 
score’—
‘‘(i) means a numerical value or a cat-
egorization derived from a statistical tool 
or modeling system used by a person who 
makes or arranges a loan to predict the 
likelihood of certain credit behaviors, in-
cluding default (and the numerical value or 
the categorization derived from this anal-
ysis may also be referred to as a ‘risk pre-
dictor’ or ‘risk score’); and 
‘‘(ii) does not include—
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‘‘(I) any mortgage score or rating 
of an automated underwriting system 
that considers one or more factors in
addition to credit information, includ-
ing the loan to value ratio, the 
amount of down payment, or a con-
sumer’s financial assets; or 
‘‘(II) any other elements of the 
underwriting process or underwriting 
decision. 
‘‘(B) KEY FACTORS.—The term ‘key fac-
tors’ means all relevant elements or reasons ad-
versely affecting the credit score for the par-
ticular individual listed in the order of their im-
portance based on their effect on the credit 
score. 
‘‘(3) TIMEFRAME
AND
MANNER
OF
DISCLO-
SURE.—The information required by this subsection 
shall be provided in the same timeframe and manner 
as the information described in subsection (a). 
‘‘(4) APPLICABILITY TO CERTAIN USES.—This 
subsection shall not be construed so as to compel a 
consumer reporting agency to develop or disclose a 
score if the agency does not—
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‘‘(A) distribute scores that are used in con-
nection with residential real property loans; or 
‘‘(B) develop scores that assist credit pro-
viders in understanding a consumer’s general 
credit behavior and predicting the future credit 
behavior of the consumer. 
‘‘(5) APPLICABILITY
TO
CREDIT
SCORES
DE-
VELOPED BY ANOTHER PERSON.—
‘‘(A) IN GENERAL.—This subsection shall 
not be construed to require a consumer report-
ing agency that distributes credit scores devel-
oped by another person or entity to provide a 
further explanation of them, or to process a dis-
pute arising pursuant to section 611, except 
that the consumer reporting agency shall pro-
vide the consumer with the name and address 
and website for contacting the person or entity 
who developed the score or developed the meth-
odology of the score. 
‘‘(B) EXCEPTION.—This paragraph shall 
not apply to a consumer reporting agency that 
develops or modifies scores that are developed 
by another person or entity. 
‘‘(6) MAINTENANCE
OF
CREDIT
SCORES
NOT 
REQUIRED.—This subsection shall not be construed
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to require a consumer reporting agency to maintain 
credit scores in its files. 
‘‘(7) COMPLIANCE IN CERTAIN CASES.—In com-
plying with this subsection, a consumer reporting 
agency shall—
‘‘(A) supply the consumer with a credit 
score that is derived from a credit scoring 
model that is widely distributed to users by that 
consumer reporting agency in connection with 
residential real property loans or with a credit 
score that assists the consumer in under-
standing the credit scoring assessment of the 
credit behavior of the consumer and predictions 
about the future credit behavior of the con-
sumer; and 
‘‘(B) a statement indicating that the infor-
mation and credit scoring model may be dif-
ferent than that used by the lender. 
‘‘(8) REASONABLE FEE.—A consumer reporting 
agency may charge a reasonable fee for providing 
the information required under this subsection. 
‘‘(9) USE OF ENQUIRIES AS A KEY FACTOR.—
If a key factor that adversely affects a consumer’s 
credit score consists of the number of enquiries 
made with respect to a consumer report, that factor
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shall be included in the disclosure pursuant to para-
graph (1)(C) without regard to the numerical limita-
tion in such paragraph.’’. 
(c) DISCLOSURE OF CREDIT SCORES BY CERTAIN 
MORTGAGE LENDERS.—Section 609 of the Fair Credit 
Reporting Act (15 U.S.C. 1681g) is amended by inserting 
after subsection (e) (as added by subsection (b) of this 
section) the following new subsection: 
‘‘(f) DISCLOSURE OF CREDIT SCORES BY CERTAIN 
MORTGAGE LENDERS.—
‘‘(1) IN GENERAL.—Any person who makes or 
arranges loans and who uses a consumer credit score 
as defined in subsection (e) in connection with an 
application initiated or sought by a consumer for a 
closed end loan or establishment of an open end loan 
for a consumer purpose that is secured by 1 to 4 
units of residential real property (hereafter in this 
subsection referred to as the ‘lender’) shall provide 
the following to the consumer as soon as reasonably 
practicable:
‘‘(A) INFORMATION
REQUIRED
UNDER 
SUBSECTION (e).—
‘‘(i) IN GENERAL.—A copy of the in-
formation identified in subsection (e) that 
was obtained from a consumer reporting
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agency or was developed and used by the 
user of the information.
‘‘(ii) NOTICE UNDER SUBPARAGRAPH 
(D).—In addition to the information pro-
vided to it by a third party that provided 
the credit score or scores, a lender is only 
required to provide the notice contained in 
subparagraph (D). 
‘‘(B) DISCLOSURES
IN
CASE
OF
AUTO-
MATED UNDERWRITING SYSTEM.—
‘‘(i) IN GENERAL.—If a person who is 
subject to this section uses an automated 
underwriting system to underwrite a loan, 
that person may satisfy the obligation to 
provide a credit score by disclosing a credit 
score and associated key factors supplied 
by a consumer reporting agency. 
‘‘(ii) NUMERICAL
CREDIT
SCORE.—
However, if a numerical credit score is 
generated by an automated underwriting 
system used by an enterprise, and that 
score is disclosed to the person, the score 
shall be disclosed to the consumer con-
sistent with subparagraph (C).
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‘‘(iii) ENTERPRISE
DEFINED.—For 
purposes of this subparagraph, the term 
‘enterprise’ shall have the same meaning 
as in paragraph (6) of section 1303 of the 
Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992. 
‘‘(C) DISCLOSURES
OF
CREDIT
SCORES 
NOT OBTAINED FROM A CONSUMER REPORTING 
AGENCY.—A person subject to the provisions of 
this subsection who uses a credit score other 
than a credit score provided by a consumer re-
porting agency may satisfy the obligation to 
provide a credit score by disclosing a credit 
score and associated key factors supplied by a 
consumer reporting agency. 
‘‘(D) NOTICE
TO
HOME
LOAN
APPLI-
CANTS.—A copy of the following notice, which 
shall include the name, address, and telephone 
number of each consumer reporting agency pro-
viding a credit score that was used: 
‘‘ ‘NOTICE TO THE HOME LOAN APPLICANT 
‘‘ ‘In connection with your application for a home 
loan, the lender must disclose to you the score that a con-
sumer reporting agency distributed to users and the lender
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used in connection with your home loan, and the key fac-
tors affecting your credit scores. 
‘‘ ‘The credit score is a computer generated summary 
calculated at the time of the request and based on infor-
mation a consumer reporting agency or lender has on file. 
The scores are based on data about your credit history 
and payment patterns. Credit scores are important be-
cause they are used to assist the lender in determining 
whether you will obtain a loan. They may also be used 
to determine what interest rate you may be offered on the 
mortgage. Credit scores can change over time, depending 
on your conduct, how your credit history and payment pat-
terns change, and how credit scoring technologies change. 
‘‘ ‘Because the score is based on information in your 
credit history, it is very important that you review the 
credit-related information that is being furnished to make 
sure it is accurate. Credit records may vary from one com-
pany to another. 
‘‘ ‘If you have questions about your credit score or 
the credit information that is furnished to you, contact 
the consumer reporting agency at the address and tele-
phone number provided with this notice, or contact the 
lender, if the lender developed or generated the credit 
score. The consumer reporting agency plays no part in the 
decision to take any action on the loan application and
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is unable to provide you with specific reasons for the deci-
sion on a loan application. 
‘‘ ‘If you have questions concerning the terms of 
the loan, contact the lender.’. 
‘‘(E) ACTIONS NOT REQUIRED UNDER THIS 
SUBSECTION.—This subsection shall not require 
any person to do any of the following: 
‘‘(i) Explain the information provided 
pursuant to subsection (e). 
‘‘(ii) Disclose any information other 
than a credit score or key factor, as de-
fined in subsection (e). 
‘‘(iii) Disclose any credit score or re-
lated information obtained by the user 
after a loan has closed. 
‘‘(iv) Provide more than 1 disclosure 
per loan transaction. 
‘‘(v) Provide the disclosure required 
by this subsection when another person has 
made the disclosure to the consumer for 
that loan transaction. 
‘‘(F) NO OBLIGATION FOR CONTENT.—
‘‘(i) IN GENERAL.—Any person’s obli-
gation pursuant to this subsection shall be 
limited solely to providing a copy of the in-
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formation that was received from the con-
sumer reporting agency. 
‘‘(ii) LIMIT ON LIABILITY.—No person 
has liability under this subsection for the
content of that information or for the 
omission of any information within the re-
port provided by the consumer reporting 
agency. 
‘‘(G) PERSON DEFINED AS EXCLUDING EN-
TERPRISE.—As used in this subsection, the 
term ‘person’ does not include an enterprise (as 
defined in paragraph (6) of section 1303 of the 
Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992). 
‘‘(2) PROHIBITION
ON
DISCLOSURE
CLAUSES 
NULL AND VOID.—
‘‘(A) IN
GENERAL.—Any provision in a 
contract that prohibits the disclosure of a credit 
score by a person who makes or arranges loans 
or a consumer reporting agency is void. 
‘‘(B) NO
LIABILITY
FOR
DISCLOSURE 
UNDER THIS SUBSECTION.—A lender shall not 
have liability under any contractual provision 
for disclosure of a credit score pursuant to this 
subsection.’’.
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(d) INCLUSION OF KEY FACTOR IN CREDIT SCORE 
INFORMATION IN CONSUMER REPORT.—Section 605(d) of 
the Fair Credit Reporting Act (15 U.S.C. 1681c(d)) is 
amended—
(1) by striking ‘‘DISCLOSED.—Any consumer 
reporting agency’’ and inserting ‘‘DISCLOSED.—
‘‘(1) TITLE 11 INFORMATION.—Any consumer 
reporting agency’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) KEY FACTOR IN CREDIT SCORE INFORMA-
TION.—Any consumer reporting agency that fur-
nishes a consumer report that contains any credit 
score or any other risk score or predictor on any 
consumer shall include in the report a clear and con-
spicuous statement that a key factor (as defined in 
section 609(e)(2)(B)) that adversely affected such 
score or predictor was the number of enquiries, if 
such a predictor was in fact a key factor that ad-
versely affected such score. This paragraph shall not 
apply 
to 
a 
person 
described 
in 
subsection 
(j)(4)(A)(i), but only to the extent that such person 
is engaged in activities described in such sub-
section.’’.
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(e) TECHNICAL AND CONFORMING AMENDMENT.—
Section 624(b) of the Fair Credit Reporting Act (15 
U.S.C. 1681t(b)(3)) (as amended by section 204(b) of this 
Act) is amended—
(1) by striking ‘‘or’’ at the end of paragraph 
(2); and 
(2) by striking paragraph (3) and inserting the 
following new paragraphs: 
‘‘(3) with respect to the form and content of 
any disclosure required to be made under subsection 
(c), (d), (e), or (f) of section 609, except that this 
paragraph shall not apply—
‘‘(A) with respect to sections 1785.10, 
1785.16 and 1785.20.2 of the California Civil 
Code (as in effect on the date of enactment of 
the Fair and Accurate Credit Transactions Act 
of 2003) and section 1785.15 through section 
1785.15.2 of such Code (as in effect on such 
date) and 
‘‘(B) with respect to section 12–14.3–
104.3 of the Colorado Revised Statutes (as in 
effect on the date of enactment of the Fair and 
Accurate Credit Transactions Act of 2003); and
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‘‘(4) with respect to the frequency of any disclo-
sure under section 612(e), except that this para-
graph shall not apply—
‘‘(A) with respect to section 12–14.3–
105(1)(d) of the Colorado Revised Statutes (as 
in effect on the date of enactment of the Fair 
and Accurate Credit Transactions Act of 2003); 
‘‘(B) with respect to section 10–1–
393(29)(C) of the Georgia Code (as in effect on 
the date of enactment of the Fair and Accurate 
Credit Transactions Act of 2003); 
‘‘(C) with respect to section 1316.2–B of 
title 10 of the Maine Revised Statutes (as in ef-
fect on the date of enactment of the Fair and 
Accurate Credit Transactions Act of 2003); 
‘‘(D) 
with 
respect 
to 
sections 
14–
1209(a)(1) and 14–1209(b)(1)(i) of the Com-
mercial Law Article of the Code of Maryland 
(as in effect on the date of enactment of the 
Fair and Accurate Credit Transactions Act of 
2003); 
‘‘(E) with respect to section 59(d) and sec-
tion 59(e) of chapter 93 of the General Laws 
of Massachusetts (as in effect on the date of
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enactment of the Fair and Accurate Credit 
Transactions Act of 2003); 
‘‘(F) with respect to section 56:11–
37.10(a)(1) of the New Jersey Revised Statutes 
(as in effect on the date of enactment of the 
Fair and Accurate Credit Transactions Act of 
2003); and 
‘‘(G) with respect to section 2480c(a)(1) of 
the Vermont Statutes Annotated (as in effect 
on the date of enactment of the Fair and Accu-
rate Credit Transactions Act of 2003).’’. 
SEC. 503. SIMPLER AND EASIER METHOD FOR CONSUMERS 
TO USE NOTIFICATION SYSTEM. 
(a) IN GENERAL.—Section 604(e)(5)(A)(i) of the 
Fair Credit Reporting Act (15 U.S.C. 1681b(e)(5)(A)(i)) 
is amended by inserting ‘‘in a simple and easy manner 
and’’ after ‘‘notify the agency,’’. 
(b) SIMPLIFIED NOTICE AND RESPONSE FORMAT 
FOR USERS.—Section 615(d) of the Fair Credit Reporting 
Act (15 U.S.C. 1681m(d)) is amended—
(1) by redesignating paragraphs (2), (3), and 
(4), as paragraphs (3), (4) and (5); and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph:
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‘‘(2) SIMPLE
AND
EASY
NOTIFICATION.—Any 
statement given the consumer under paragraph 
(1)(E) shall be in a simple and easy to understand 
format and shall describe the simple and easy meth-
od established under section 604(e)(5)(A)(i) for the 
consumer to respond.’’.
SEC. 504. REQUIREMENT TO DISCLOSE COMMUNICATIONS 
TO A CONSUMER REPORTING AGENCY. 
(a) IN GENERAL.—Section 623(a) of the Fair Credit 
Reporting Act (15 U.S.C. 1681s–2(a)) is amended by in-
serting after paragraph (6) (as added by section 304(3)) 
the following new paragraph: 
‘‘(7) NEGATIVE INFORMATION.—
‘‘(A) NOTICE TO CONSUMER REQUIRED.—
‘‘(i) IN
GENERAL.—If any financial 
institution that extends credit and regu-
larly and in the ordinary course of business 
furnishes information to a consumer re-
porting agency described in section 603(p) 
furnishes negative information to such an 
agency regarding credit extended to a cus-
tomer, the financial institution shall pro-
vide a notice of such furnishing of negative 
information, in writing, to the customer.
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‘‘(ii) NOTICE EFFECTIVE FOR SUBSE-
QUENT
SUBMISSIONS.—After 
providing 
such notice, the financial institution may 
submit additional negative information to a 
consumer reporting agency described in 
section 603(p) with respect to the same 
transaction, extension of credit, account, or 
customer without providing additional no-
tice to the customer. 
‘‘(B) TIME OF NOTICE.—
‘‘(i) IN
GENERAL.—The notice re-
quired under subparagraph (A) shall be 
provided to the customer prior to, or no 
later than 30 days after, furnishing the 
negative information to a consumer report-
ing agency described in section 603(p). 
‘‘(ii) COORDINATION
WITH
NEW
AC-
COUNT
DISCLOSURES.—If the notice is 
provided to the customer prior to fur-
nishing the negative information to a con-
sumer reporting agency, the notice may 
not be included in the initial disclosures 
provided under section 127(a) of the Truth 
in Lending Act.
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‘‘(C) COORDINATION WITH OTHER DISCLO-
SURES.—The notice required under subpara-
graph (A)—
‘‘(i) may be included on or with any 
notice of default, any billing statement, or 
any other materials provided to the cus-
tomer; and 
‘‘(ii) must be clear and conspicuous. 
‘‘(D) MODEL DISCLOSURE.—
‘‘(i) DUTY OF BOARD TO PREPARE.—
The Board shall prescribe a brief model 
disclosure a financial institution may use 
to comply with subparagraph (A), which 
shall not exceed 30 words. 
‘‘(ii) 
USE
OF
MODEL
NOT
RE-
QUIRED.—No provision of this paragraph 
shall be construed as requiring a financial 
institution to use any such model form pre-
scribed by the Board. 
‘‘(iii) COMPLIANCE USING MODEL.—A 
financial institution shall be deemed to be 
in compliance with subparagraph (A) if the 
financial institution uses any such model 
form prescribed by the Board, or the fi-
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nancial institution uses any such model 
form and rearranges its format. 
‘‘(E) USE OF NOTICE WITHOUT SUBMIT-
TING
NEGATIVE
INFORMATION.—No provision 
of this paragraph shall be construed as requir-
ing a financial institution that has provided a 
customer with a notice described in subpara-
graph (A) to furnish negative information about 
the customer to a consumer reporting agency. 
‘‘(F) SAFE HARBOR.—A financial institu-
tion shall not be liable for failure to perform 
the duties required by this paragraph if, at the 
time of the failure, the financial institution 
maintained reasonable policies and procedures 
to comply with this paragraph or the financial 
institution reasonably believed that the institu-
tion is prohibited, by law, from contacting the 
consumer. 
‘‘(G) DEFINITIONS.—For purposes of this 
paragraph, the following definitions shall apply: 
‘‘(i) NEGATIVE
INFORMATION.—The 
term ‘negative information’ means infor-
mation concerning a customer’s delin-
quencies, late payments, insolvency, or any 
form of default.
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‘‘(ii) CUSTOMER; FINANCIAL INSTITU-
TION.—The terms ‘customer’ and ‘finan-
cial institution’ have the same meaning as 
in section 509 of the Gramm-Leach-Bliley 
Act.’’. 
(b) MODEL DISCLOSURE FORM.—Before the end of 
the 6-month period beginning on the date of the enact-
ment of this Act, the Board of Governors of the Federal 
Reserve System shall adopt the model disclosure required 
under the amendment made by subsection (a) after notice 
duly given in the Federal Register and an opportunity for 
public comment in accordance with section 553 of title 5, 
United States Code.
SEC. 505. STUDY OF EFFECTS OF CREDIT SCORES AND 
CREDIT-BASED 
INSURANCE 
SCORES 
ON 
AVAILABILITY AND AFFORDABILITY OF FI-
NANCIAL PRODUCTS. 
(a) STUDY REQUIRED.—The Federal Trade Commis-
sion, in consultation with the Office of Fair Housing and 
Equal Opportunity of the Department of Housing and 
Urban Development, shall conduct a study of—
(1) the effects of the use of credit scores and 
credit-based insurance scores on the availability and 
affordability of financial products and services, in-
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cluding credit cards, mortgages, auto loans, and 
property and casualty insurance; 
(2) the degree of causality between the factors 
considered by credit score systems and the quantifi-
able risks and actual losses experienced by busi-
nesses, including the extent to which, if any, each of 
the factors considered or otherwise taken into ac-
count by such systems are accurate predictors of 
risk or loss, and where the means square error of a 
scoring model’s predictions are considered in the 
evaluation of accuracy; 
(3) the extent to which, if any, the use of credit 
scoring models, credit scores and credit-based insur-
ance scores result in disparate impact by geography, 
income, ethnicity, race, color, religion, national ori-
gin, age, sex or marital status, and creed, including 
the extent to which the consideration or lack of con-
sideration of certain factors by credit scoring sys-
tems could result in disparate effects and the extent 
to which, if any, the use of underwriting systems re-
lying on these models could achieve comparable re-
sults through the use of factors with less disparate 
impact; and 
(4) the extent to which credit scoring systems 
are used by businesses, the factors considered by
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such systems, and the effects of variables which are 
not considered by such systems.
(b) PUBLIC PARTICIPATION.—The Commission shall 
seek public input about the prescribed methodology and 
research design of the study required in subsection (a). 
(c) REPORT REQUIRED.—
(1) IN GENERAL.—Before the end of the 18-
month period beginning on the date of the enact-
ment of this Act, the Federal Trade Commission 
shall submit a detailed report on the study con-
ducted pursuant to subsection (a) to the Committee 
on Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate. 
(2) CONTENTS OF REPORT.—The report sub-
mitted under paragraph (1) shall include the find-
ings and conclusions of the Commission, together 
with such recommendations for legislative or admin-
istrative action as the Commission may determine to 
be necessary to ensure that credit and credit-based 
insurances score are used appropriately and fairly to 
avoid disparate effects. 
(d) CREDIT SCORE DEFINED.—For purposes of this 
section, the term ‘‘credit score’’ means a numerical value 
or a categorization derived from a statistical tool or mod-
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eling system used to predict the likelihood of certain credit 
or insurance behaviors, including default. 
SEC. 506. GAO STUDY ON DISPARATE IMPACT OF CREDIT 
SYSTEM. 
(a) STUDY REQUIRED.—The Comptroller General 
shall conduct a study of the credit system to determine 
the extent to which, if any, discrimination exists with re-
gard to the availability and the terms of credit which has 
a disparate impact on the basis of race, color, income and 
education level, geographic location, age, sex, sexual ori-
entation, national origin, or marital status and the nature 
of any such discriminatory effect. 
(b) REPORT REQUIRED.—Before the end of the 2-
year period beginning on the date of the enactment of this 
Act, the Comptroller General shall submit a report to the 
Congress on the findings and conclusions of the Comp-
troller General pursuant to the study conducted under 
subsection (a), together with such recommendations for 
legislative or administrative action as the Comptroller 
General may determine to be appropriate. 
SEC. 507. ANALYSIS OF FURTHER RESTRICTIONS ON OF-
FERS OF CREDIT OR INSURANCE. 
(a) IN GENERAL.—The Board of Governors of the 
Federal Reserve System shall conduct a study of—
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(1) the ability of consumers to avoid receiving 
written offers of credit or insurance in connection 
with transactions not initiated by the consumer; and 
(2) the potential impact any further restrictions 
on providing consumers with such written offers of 
credit or insurance would have on consumers. 
(b) REPORT.—The Board of Governors of the Fed-
eral Reserve System shall submit a report summarizing 
the results of the study required under subsection (a) to 
the Congress no later than 12 months after the date of 
the 
enactment 
of 
this 
Act, 
together 
with 
such 
recommendatioons for legislative or administrative action 
as the Board may determine to be appropriate. 
(c) CONTENT OF REPORT.—The report described in 
subsection (b) shall address the following issues: 
(1) The current statutory or voluntary mecha-
nisms that are available to a consumer to notify 
lenders and insurance providers that the consumer 
does not wish to receive written offers of credit or 
insurance. 
(2) The extent to which consumers are cur-
rently utilizing existing statutory and voluntary 
mechanisms to avoid receiving offers of credit or in-
surance.
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(3) The benefits provided to consumers as a re-
sult of receiving written offers of credit or insurance. 
(4) Whether consumers incur significant costs 
or are otherwise adversely affected by the receipt of 
written offers of credit or insurance. 
(5) Whether further restricting the ability of 
lenders and insurers to provide written offers of 
credit or insurance to consumers would affect—
(A) the cost consumers pay to obtain credit 
or insurance; 
(B) the availability of credit or insurance; 
(C) consumers’ knowledge about new or al-
ternative products and services; 
(D) the ability of lenders or insurers to 
compete with one another; and 
(E) the ability to offer credit or insurance 
products to consumers who have been tradition-
ally underserved. 
SEC. 508. STUDY ON THE NEED AND THE MEANS FOR IM-
PROVING FINANCIAL LITERACY AMONG CON-
SUMERS. 
(a) STUDY REQUIRED.—The Comptroller General 
shall conduct a study to assess the extent of consumers’ 
knowledge and awareness of credit reports, credit scores,
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and the dispute resolution process, and on methods for 
improving financial literacy among consumers. 
(b) FACTORS TO BE INCLUDED.—The study re-
quired under subsection (a) shall include the following 
issues: 
(1) The number of consumers who view their 
credit reports.
(2) Under what conditions and for what pur-
poses do consumers primarily obtain a copy of their 
consumer report (such as for the purpose of ensur-
ing the completeness and accuracy of the contents, 
to protect against fraud, in response to an adverse 
action based on the report, or in response to sus-
pected identity theft) and approximately what per-
centage of the total number of consumers who ob-
tain a copy of their consumer report do so for each 
such primary purpose. 
(3) The extent of consumers’ knowledge of the 
data collection process. 
(4) The extent to which consumers know how to 
get a copy of a consumer report. 
(5) The extent to which consumers know and 
understand the factors that positively or negatively 
impact credit scores.
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(c) REPORT REQUIRED.—Before the end of the 9-
month period beginning on the date of the enactment of 
this Act, the Comptroller General shall submit a report 
to the Congress on the findings and conclusions of the 
Comptroller General pursuant to the study conducted 
under subsection (a), together with such recommendations 
for legislative or administrative action as the Comptroller 
General may determine to be appropriate, including rec-
ommendations on methods for improving financial literacy 
among consumers. 
SEC. 509. DISCLOSURE OF INCREASE IN APR UNDER CER-
TAIN CIRCUMSTANCES. 
Section 609 of the Fair Credit Reporting Act (15 
U.S.C. 1681m) is amended by inserting after subsection 
(f) (as added by section 502(c) of this title) the following 
new subsection: 
‘‘(g) DISCLOSURE TO CONSUMER.—
‘‘(1) IN GENERAL.—The ability of a credit card 
issuer to increase any annual percentage rate appli-
cable to a credit card account, or to remove or in-
crease any introductory annual percentage rate of 
interest applicable to such account, for reasons other 
than actions or omissions of the card holder that are 
directly related to such account shall be clearly and 
conspicuously disclosed to the consumer by the cred-