I
103D CONGRESS
1ST SESSION
H. R. 1015
To amend the Fair Credit Reporting Act to assure the completeness and
accuracy of consumer information maintained by credit reporting agen-
cies, to better inform consumers of their rights under the Act, and
to improve enforcement, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 18, 1993
Mr. TORRES (for himself and Mr. GONZALEZ, Mr. KENNEDY, Mr. SCHUMER,
Mr. GUTIERREZ, Mr. RUSH, Ms. ROYBAL-ALLARD, Mr. BARRETT of Wis-
consin, Ms. FURSE, Ms. VELA´ZQUEZ, Mr. WYNN, Mr. WATT, Mr.
HINCHEY, Mr. FLAKE, Ms. WATERS and Mrs. MALONEY) introduced the
following bill; which was referred to the Committee on Banking, Finance
and Urban Affairs
NOVEMBER 18, 1993
Additional sponsors: Mrs. JOHNSON of Connecticut, Mr. FIELDS of Louisiana,
Mr. BILBRAY, Mr. MAZZOLI, Mr. BARLOW, Mr. SMITH of New Jersey,
Mr. FRANK of Massachusetts, Mr. RICHARDSON, Mr. SHAYS, Ms.
PELOSI, Mr. FILNER, Mr. KLECZKA, and Mr. ENGEL
A BILL
To amend the Fair Credit Reporting Act to assure the com-
pleteness and accuracy of consumer information main-
tained by credit reporting agencies, to better inform con-
sumers of their rights under the Act, and to improve
enforcement, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—AMENDMENTS TO FAIR
CREDIT REPORTING ACT
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Consumer Reporting
Reform Act of 1993’’.
SEC. 102. DEFINITIONS.
(a) ADVERSE ACTION.—Section 603 of the Fair
Credit Reporting Act (15 U.S.C. 1681a) is amended by
adding at the end the following new subsection:
‘‘(j) The term ‘adverse action’—
‘‘(1) has the meaning given to such term in sec-
tion 701(d)(6) of the Equal Credit Opportunity Act;
and
‘‘(2) includes—
‘‘(A) any denial of, increase in any charge
for, or reduction in the amount of, insurance
for personal, family, or household purposes
made in connection with the underwriting of in-
surance;
‘‘(B) any denial of employment or any
other decision for employment purposes which
adversely affects any current or prospective em-
ployee; and
‘‘(C) any action taken or determination
made—
‘‘(i) in connection with an application
which was made by, or a transaction which
was initiated by, any consumer; and
‘‘(ii) which is adverse to the interest
of the consumer.’’.
(b) FIRM OFFER OF CREDIT.—Section 603 of the
Fair Credit Reporting Act (15 U.S.C. 1681a) is further
amended by adding after subsection (j) (as added by sub-
section (a) of this section) the following:
‘‘(k) The term ‘firm offer of credit’ means any offer
of credit to a consumer that will be honored if, based on
information in a consumer report on the consumer and
other information bearing on the creditworthiness of the
consumer obtained from the consumer’s application for
such credit, the consumer is determined to meet the spe-
cific criteria used to select the consumer for the offer.’’.
(c) CREDIT TRANSACTION WHICH IS NOT INITIATED
BY THE CONSUMER.—Section 603 of the Fair Credit Re-
porting Act (15 U.S.C. 1681a) is further amended by add-
ing after subsection (k) (as added by subsection (b) of this
section) the following:
‘‘(l) The term ‘credit transaction which is not initi-
ated by the consumer’ does not include the use of a
consumer report by a person with which the consumer has
an account, for purposes of—
‘‘(1) reviewing the account; or
‘‘(2) collecting the account.’’.
(d) STATE.—Section 603 of the Fair Credit Report-
ing Act (15 U.S.C. 1681a) is further amended by adding
after subsection (l) (as added by subsection (c) of this sec-
tion) the following:
‘‘(m) The term ‘State’ means any State, the Com-
monwealth of Puerto Rico, the District of Columbia, and
any territory or possession of the United States.’’.
(e) CLERICAL AMENDMENT.—Section 603(d) of the
Fair Credit Reporting Act (15 U.S.C. 1681a(d)) is
amended in the first sentence—
(1) by inserting ‘‘(1)’’ after ‘‘in whole or in part
for’’; and
(2) by striking ‘‘(1)’’ before ‘‘credit or insur-
ance’’.
SEC. 103. FURNISHING CONSUMER REPORTS; USE FOR EM-
PLOYMENT PURPOSES.
(a) FURNISHING CONSUMER REPORTS FOR BUSI-
NESS TRANSACTIONS.—Section 604 of the Fair Credit Re-
porting Act (15 U.S.C. 1681b) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘A consumer reporting agency’’; and
(2) in subsection (a)(3) (as designated by para-
graph (1) of this subsection) by amending subpara-
graph (E) to read as follows:
‘‘(E) otherwise has a legitimate business
need for the information in connection with a
business transaction that is initiated by the
consumer.’’.
(b) FURNISHING AND USING CONSUMER REPORTS
FOR EMPLOYMENT PURPOSES.—Section 604 of the Fair
Credit Reporting Act (15 U.S.C. 1681b) is further amend-
ed by adding at the end the following new subsection:
‘‘(b) CONDITIONS
FOR FURNISHING
AND USING
CONSUMER REPORTS FOR EMPLOYMENT PURPOSES.—
‘‘(1) CERTIFICATION FROM USER.—A consumer
reporting agency may furnish a consumer report for
employment purposes only if—
‘‘(A) the person who obtains such report
from the agency certifies to the agency that—
‘‘(i) the disclosure required under
paragraph (2) or (3), as the case may be,
with respect to such consumer report has
been made; and
‘‘(ii) information from the consumer
report will not be used in violation of any
applicable Federal or State equal employ-
ment opportunity law or regulation; and
‘‘(B) the consumer reporting agency pro-
vides with the report a summary of the consum-
er’s rights under this title, as prescribed by the
Federal 
Trade 
Commission 
under 
section
609(c)(3).
‘‘(2) DISCLOSURE
TO
CONSUMER.—A person
may not procure a consumer report, or cause a
consumer report to be procured, for employment
purposes with respect to any consumer unless—
‘‘(A) a clear and conspicuous disclosure
has been made in writing to the consumer be-
fore the report is procured or caused to be pro-
cured, in a document that consists solely of the
disclosure, that a consumer report may be ob-
tained for employment purposes; and
‘‘(B) the consumer authorizes in writing
the procurement of the report.
‘‘(3) CONDITIONS ON USE FOR ADVERSE AC-
TIONS.—In using a consumer report for employment
purposes, before taking any adverse action based in
whole or in part on the report a person shall provide
to the consumer to whom the report relates—
‘‘(A) a copy of the report;
‘‘(B) a description of the consumer’s rights
under this title, as prescribed by the Federal
Trade Commission under section 609(c)(3); and
‘‘(C) a reasonable opportunity to respond
to any information in the report that is dis-
puted by the consumer.’’.
SEC. 104. AMENDMENTS RELATING TO PRESCREENING OF
CONSUMER REPORTS; PROHIBITION ON UN-
AUTHORIZED OR UNCERTIFIED USE OF IN-
FORMATION.
(a) IN GENERAL.—Section 604 of the Fair Credit
Reporting Act (15 U.S.C. 1681b), as amended by section
103, is further amended—
(1) in subsection (a) by striking ‘‘A consumer
reporting agency’’ and inserting ‘‘Subject to sub-
section (c), any consumer reporting agency’’; and
(2) by adding after subsection (b) (as added by
section 103(b)) the following new subsections:
‘‘(c) FURNISHING REPORTS IN CONNECTION WITH
CREDIT
TRANSACTIONS
NOT
INITIATED
BY
THE
CONSUMER.—
‘‘(1) IN
GENERAL.—A consumer reporting
agency may furnish a consumer report relating to
any consumer pursuant to subsection (a)(3)(A) in
connection with any credit transaction which is not
initiated by the consumer only if—
‘‘(A) the consumer authorizes the agency
to provide such report to such person; or
‘‘(B)(i) the transaction consists of a firm
offer of credit;
‘‘(ii) the consumer reporting agency has
complied with subsection (d); and
‘‘(iii) the consumer has not elected in ac-
cordance with subsection (d)(1) to have the con-
sumer’s name and address excluded from lists
of names provided by the agency pursuant to
this paragraph.
‘‘(2) 
LIMITS
ON
INFORMATION
RECEIVED
UNDER PARAGRAPH (1)(B).—A person may receive
pursuant to paragraph (1)(B) only—
‘‘(A) the name and address of a consumer;
and
‘‘(B) information pertaining to a consumer
that is not identified or identifiable with the
consumer.
‘‘(3) INFORMATION
REGARDING
INQUIRIES.—
Except as provided in section 609(a)(4), a consumer
reporting agency shall not furnish to any person a
record of inquiries in connection with credit trans-
actions which are not initiated by a consumer.
‘‘(d) ELECTION OF CONSUMER TO BE EXCLUDED
FROM LISTS.—
‘‘(1) IN GENERAL.—A consumer may elect to
have his or her name and address excluded from any
list provided by a consumer reporting agency in con-
nection with a credit transaction which is not initi-
ated by the consumer, by—
‘‘(A) notifying the agency, through the no-
tification system maintained by the agency
under paragraph (3), that the consumer does
not consent to any use of consumer reports re-
lating to the consumer in connection with any
transaction which is not initiated by the
consumer; and
‘‘(B) returning to the agency a signed
written notice of the election, if provided by the
agency in accordance with paragraph (2).
‘‘(2) PROVISION
OF
WRITTEN
NOTICE
TO
CONSUMER.—A consumer reporting agency shall
provide to a consumer a written notice for purposes
of paragraph (1)(B), by not later than 5 business
days after being notified of the election of the
consumer in accordance with paragraph (1)(A).
‘‘(3) NOTIFICATION SYSTEM.—Each consumer
reporting agency which furnishes a consumer report
in connection with any credit transaction which is
not initiated by a consumer, shall—
‘‘(A) establish and maintain a notification
system, including a toll-free telephone number,
which permits any consumer whose consumer
report is maintained by the agency to notify the
agency, with appropriate identification, of the
consumer’s election to have the consumer’s
name and address excluded from any list of
names and addresses provided by the agency for
such a transaction; and
‘‘(B) publish by not later than 12 months
after the date of the enactment of the
Consumer Reporting Reform Act of 1993, and
at least annually thereafter, in a publication of
general circulation in the area served by the
agency—
‘‘(i) a notification that information in
consumer files maintained by the agency
may be used in connection with such trans-
actions; and
‘‘(ii) the address and toll-free tele-
phone number for consumers to use to no-
tify the agency of the consumer’s election
under subparagraph (A).
Establishment and maintenance of a notification
system and publication by a consumer reporting
agency on its own behalf and on behalf of any of its
affiliates in accordance with this paragraph is
deemed to be in compliance with this paragraph by
each of those affiliates.
‘‘(4) AGENCIES
WHICH
OPERATE
NATION-
WIDE.—Each consumer reporting agency which com-
piles and maintains files on consumers on a nation-
wide basis shall establish and maintain a notification
system for purposes of paragraph (3) jointly with
other such consumer reporting agencies.
‘‘(5) EFFECTIVENESS OF ELECTION.—An elec-
tion of a consumer under paragraph (1)—
‘‘(A) shall be effective with respect to a
consumer reporting agency beginning on the
later of—
‘‘(i) the date on which the consumer
notifies the agency in accordance with
paragraph (1)(A); or
‘‘(ii) the date on which the consumer
returns to the agency a signed written
notification of the election in accordance
with paragraph (1)(B), if provided by the
agency; and
‘‘(B) shall not be effective after the date
on which the consumer notifies the agency
(through the system established by the agency
under paragraph (3)) that the election is no
longer effective; and
‘‘(C) shall be effective with respect to each
affiliate of the agency.’’.
(b) FURNISHING CONSUMER REPORTS FOR CERTAIN
DIRECT MARKETING TRANSACTIONS PROHIBITED.—Sec-
tion 604 of the Fair Credit Reporting Act (15 U.S.C.
1681b) is further amended by adding after subsection (d)
(as added by subsection (a) of this section) the following
new subsection:
‘‘(e) FURNISHING CONSUMER REPORTS FOR CER-
TAIN
DIRECT
MARKETING
TRANSACTIONS
PROHIB-
ITED.—A consumer reporting agency may not furnish a
consumer report for use for a direct marketing transaction
that is not initiated by the consumer to whom the report
relates.’’.
(c) USE
OF INFORMATION OBTAINED FROM RE-
PORTS.—Section 604 of the Fair Credit Reporting Act (15
U.S.C. 1681b) is further amended by adding after sub-
section (e) (as added by subsection (b) of this section) the
following new subsection:
‘‘(f) CERTAIN USE OR OBTAINING OF INFORMATION
PROHIBITED.—A person shall not use or obtain informa-
tion from a consumer report for any purpose unless—
‘‘(1) it is obtained for a purpose for which the
consumer report is authorized to be furnished under
subsection (a); and
‘‘(2) the purpose is certified in accordance with
section 607 by a prospective user of the report.’’.
(d) FIRST
NOTIFICATIONS
BY
CONSUMERS.—A
consumer may notify a consumer reporting agency
through a notification system established and maintained
by the agency under section 604(d) of the Fair Credit Re-
porting Act, as amended by subsection (a), on or after
the date which is 455 days after the date of the enactment
of this Act.
SEC. 105. AMENDMENTS RELATING TO OBSOLETE INFOR-
MATION AND INFORMATION CONTAINED IN
CONSUMER REPORTS.
(a) REPEAL LARGE-DOLLAR EXCEPTIONS.—Section
605 of the Fair Credit Reporting Act (15 U.S.C. 1681c)
is amended—
(1) in subsection (a) by striking ‘‘(a) Except as
authorized under subsection (b), no’’ and inserting
‘‘(a) INFORMATION EXCLUDED FROM CONSUMER
REPORTS.—No’’; and
(2) by striking subsection (b).
(b) CLARIFICATION OF REPORTING PERIOD.—Sec-
tion 605 of the Fair Credit Reporting Act (15 U.S.C.
1681c), as amended by subsection (a), is further amended
by adding at the end the following new subsection:
‘‘(b) RUNNING OF REPORTING PERIOD.—The 7-year
period referred to in paragraphs (4) and (6) of subsection
(a) shall begin, with respect to any delinquent account
which is placed for collection (internally or by referral to
a 3d party, whichever is earlier), charged to profit and
loss, or subjected to any similar action, upon the expira-
tion of the 180-day period beginning on the date of the
commencement of the delinquency which immediately pre-
ceded the collection activity, charge to profit and loss, or
similar action.’’.
(c) ADDITIONAL INFORMATION
ON BANKRUPTCY
FILINGS REQUIRED.—Section 605 of the Fair Credit Re-
porting Act (15 U.S.C. 1681c) is further amended by add-
ing after subsection (b) (as added by subsection (b) of this
section) the following new subsection:
‘‘(c) INFORMATION REQUIRED TO BE DISCLOSED.—
Any consumer reporting agency which furnishes a
consumer report which contains information regarding
any case involving the consumer which arises under title
11, United States Code, shall include in the report an
identification of the chapter of such title 11 under which
such case arises if provided by the source of the informa-
tion.’’.
(d) INDICATION OF CLOSURE OF ACCOUNT.—Section
605 of the Fair Credit Reporting Act (15 U.S.C. 1681c)
is further amended by adding after subsection (c) (as
added by subsection (c) of this section) the following new
subsection:
‘‘(d) INDICATION
OF CLOSURE
OF ACCOUNT
BY
CONSUMER.—If a consumer reporting agency is notified
pursuant to section 622(a)(4) that a credit account of a
consumer was closed by the consumer with no outstanding
balance, the agency shall indicate that the consumer closed
the account in good standing in any consumer report that
includes information related to the account.’’.
(e) CLERICAL AMENDMENTS.—
(1) The heading for section 605 of the Fair
Credit Reporting Act (15 U.S.C. 1681c) is amended
by striking ‘‘Obsolete information’’ and insert-
ing ‘‘Requirements relating to information
contained in consumer reports’’.
(2) 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 relating to section
605 and inserting the following:
‘‘605. Requirements relating to information contained in consumer reports.’’.
SEC. 106. AMENDMENTS RELATING TO COMPLIANCE PRO-
CEDURES.
(a) DISCLOSURE
OF
CONSUMER
REPORTS
BY
USERS.—Section 607 of the Fair Credit Reporting Act
(15 U.S.C. 1681e) is amended by adding at the end the
following new subsection:
‘‘(c) DISCLOSURE
OF
CONSUMER
REPORTS
BY
USERS ALLOWED.—A consumer reporting agency may not
prohibit a user of a consumer report furnished by the
agency on a consumer from disclosing the contents of the
report to the consumer, if adverse action against the
consumer has been taken, or is contemplated, by the user
based in whole or in part on the report.’’.
(b) NOTICE TO USERS AND PROVIDERS OF INFORMA-
TION TO ENSURE COMPLIANCE.—Section 607 of the Fair
Credit Reporting Act (15 U.S.C. 1681e) is further amend-
ed by adding after subsection (c) (as added by subsection
(a) of this section) the following new subsection:
‘‘(d) NOTICE TO USERS AND FURNISHERS OF INFOR-
MATION.—
‘‘(1) NOTICE REQUIREMENT.—A consumer re-
porting agency shall provide to any person—
‘‘(A) who regularly and in the ordinary
course of business furnishes information to the
agency with respect to any consumer; or
‘‘(B) to whom a consumer report is pro-
vided by the agency;
a notice of such person’s responsibilities under this
title.
‘‘(2) CONTENT
OF
NOTICE.—The Federal
Trade Commission shall prescribe the content of no-
tices under paragraph (1).’’.
(c) RECORD OF IDENTITY OF USERS AND PURPOSES
CERTIFIED BY USERS OF REPORTS.—Section 607 of the
Fair Credit Reporting Act (15 U.S.C. 1681e) is further
amended by adding after subsection (d) (as added by sub-
section (b) of this section) the following new subsection:
‘‘(e) PROCUREMENT OF CONSUMER REPORT FOR RE-
SALE.—
‘‘(1) DISCLOSURE.—A person may not procure
a consumer report for purposes of reselling the re-
port (or any information in the report) unless the
person discloses to the consumer reporting agency
which originally furnishes the report—
‘‘(A) the identity of the ultimate end-user
of the report (or information), and
‘‘(B) each permissible purpose under sec-
tion 604 for which the report is furnished to
the ultimate end-user of the report (or informa-
tion).
‘‘(2) RESPONSIBILITIES
OF
PROCURERS
FOR
RESALE.—A person which procures a consumer re-
port for purposes of reselling the report (or any in-
formation in the report) shall—
‘‘(A) establish and comply with reasonable
procedures designed to ensure that the report
(or information) is resold by the person only for
a purpose for which the report may be fur-
nished under section 604, including by ensuring
that the person—
‘‘(i) identifies each prospective user of
the resold report (or information);
‘‘(ii) certifies each purpose for which
the report (or information) will be used;
and
‘‘(iii) certifies that the report (or in-
formation) will be used for no other pur-
pose; and
‘‘(B) before reselling the report, makes
reasonable efforts to verify the identifications
and certifications made under subparagraph
(A).’’.
SEC. 107. AMENDMENTS RELATING TO CONSUMER DISCLO-
SURES.
(a) ALL INFORMATION IN CONSUMER’S FILE RE-
QUIRED TO BE DISCLOSED.—Section 609(a)(1) of the
Fair Credit Reporting Act (15 U.S.C. 1681g(a)(1)) is
amended to read as follows:
‘‘(1) All information in the consumer’s file at
the time of the request.’’.
(b) MORE INFORMATION CONCERNING RECIPIENTS
OF REPORTS REQUIRED.—Section 609(a)(3) of the Fair
Credit Reporting Act (15 U.S.C. 1681g(a)) is amended
to read as follows:
‘‘(3)(A) Identification of each person (including
each ultimate end-user identified under section
607(e)(1)) who procured a consumer report—
‘‘(i) for employment purposes within the 2-
year period preceding the request; or
‘‘(ii) for any other purpose within the 6-
month period preceding the request.
‘‘(B) An identification of a person under sub-
paragraph (A) shall include—
‘‘(i) the name of the person or, if applica-
ble, the trade name (written in full) under
which such person conducts business; and
‘‘(ii) upon request of the consumer, the ad-
dress of the person.’’.
(c) DISCLOSURE OF PERMISSIBLE PURPOSES.—Sec-
tion 609(a) of the Fair Credit Reporting Act (15 U.S.C.
1681g(a)) is further amended by adding at the end the
following:
‘‘(4) The permissible purpose for which each
person identified under paragraph (3) procured a
consumer report.’’.
(d) INFORMATION REGARDING INQUIRIES.—Section
609(a) of the Fair Credit Reporting Act (15 U.S.C.
1681g(a)) is amended by adding after paragraph (4) (as
added by subsection (d) of this section) the following:
‘‘(5) A record of all inquiries received by the
agency in the 6-month period preceding the request
that identified the consumer in connection with a
credit transaction which was not initiated by the
consumer.’’.
(e) SUMMARY OF RIGHTS REQUIRED TO BE IN-
CLUDED WITH DISCLOSURE.—
(1) 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:
‘‘(c) SUMMARY OF RIGHTS REQUIRED TO BE IN-
CLUDED WITH DISCLOSURE.—
‘‘(1) SUMMARY OF RIGHTS.—A consumer re-
porting agency shall provide to a consumer, with
each written disclosure by the agency to the
consumer under this section—
‘‘(A) a written summary of all rights the
consumer has under this title; and
‘‘(B) in the case of a consumer reporting
agency that compiles and maintains files on
consumers on a nationwide basis, a toll-free
telephone number which the consumer can use
to communicate with the agency.
‘‘(2) SPECIFIC
ITEMS
REQUIRED
TO
BE
IN-
CLUDED.—The summary of rights required under
paragraph (1) shall include—
‘‘(A) a brief description of this title and all
rights of consumers under this title;
‘‘(B) an explanation of how the consumer
may exercise the rights of the consumer under
this title;
‘‘(C) a list of all Federal agencies respon-
sible for enforcing any provision of this title
and the address and any appropriate phone
number of each such agency, in a form that will
assist the consumer in selecting the appropriate
agency; and
‘‘(D) a statement that a consumer report-
ing agency is not required to remove accurate
derogatory information from a consumer’s file,
unless the information is outdated under sec-
tion 605 or cannot be verified.
‘‘(3) FORM OF SUMMARY OF RIGHTS.—For pur-
poses of this subsection and any disclosure by a
consumer reporting agency required under this title
with respect to consumers’ rights, the Federal Trade
Commission (after consultation with each Federal
agency referred to in section 621(b)) shall prescribe
the form and content of any disclosure of the rights
of consumers required under this title.’’.
(2) 
TECHNICAL
AMENDMENT.—Section
606(a)(1)(B) of the Fair Credit Reporting Act (15
U.S.C. 1681d(a)(1)(B)) is amended by inserting
‘‘and the written summary of the rights of the
consumer prepared pursuant to section 609(c)’’ be-
fore the semicolon.
(f) FORM OF DISCLOSURES.—
(1) IN GENERAL.—Subsections (a) and (b) of
section 610 of the Fair Credit Reporting Act (15
U.S.C. 1681h) are amended to read as follows:
‘‘(a) FORM OF DISCLOSURE, GENERALLY.—Except
as provided in subsection (b), the disclosures required to
be made under section 609 shall be provided to a
consumer in writing.
‘‘(b) OTHER FORMS OF DISCLOSURE.—
‘‘(1) IN
GENERAL.—A consumer reporting
agency may make the disclosures required under sec-
tion 609 other than in writing if authorized by the
consumer, and in such form as may be specified by
the consumer and available from the agency.
‘‘(2) FORM.—A consumer may specify pursuant
to paragraph (1) that disclosures under section 609
shall be made—
‘‘(A) in person, upon—
‘‘(i) the appearance of the consumer
at the place of business of the consumer
reporting agency where disclosures are reg-
ularly provided, during normal business
hours, and on reasonable notice; and
‘‘(ii) the furnishing of proper identi-
fication by the consumer;
‘‘(B) by telephone, if the consumer has
made a written request for disclosure by tele-
phone that includes proper identification of the
consumer;
‘‘(C) by electronic means, if available from
the agency; or
‘‘(D) by any other reasonable means that
is available from the agency.’’.
(2) SIMPLIFIED DISCLOSURE.—Section 610 of
the Fair Credit Reporting Act (15 U.S.C. 1681h) is
amended by adding at the end the following:
‘‘(f) SIMPLIFIED DISCLOSURE.—The Federal Trade
Commission shall prescribe the form in which a consumer
reporting agency shall make the disclosures required
under section 609(a), for the purpose of maximizing the
comprehensibility and standardization of such disclo-
sures.’’.
(3) CONFORMING AMENDMENTS.—
(A) Section 610 of the Fair Credit Report-
ing Act (15 U.S.C. 1681h) is amended in the
heading for the section by inserting ‘‘and
form’’ after ‘‘Conditions’’.
(B) 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. 108. 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) IN GENERAL.—If the completeness or ac-
curacy of any item of information contained in any
consumer’s file at any 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 disputed 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 dispute
from the consumer.
‘‘(2) PROMPT
NOTICE
OF
DISPUTE
TO
FUR-
NISHER OF INFORMATION.—
‘‘(A) IN GENERAL.—Before the end of the
5-day period beginning on the date a consumer
reporting agency receives notice of a dispute
from any consumer in accordance with para-
graph (1), the agency shall provide notification
of the dispute to any person that provided any
item of information in dispute, at the address
and in the manner established with the person.
The notice shall include disclosure of the date
on which the consumer reporting agency re-
ceived notice of the dispute from the consumer
and all relevant information regarding the dis-
pute that the agency has received from the
consumer.
‘‘(B) PROVISION OF OTHER INFORMATION
FROM
CONSUMER.—The consumer reporting
agency shall promptly provide to the person
that provided the information in dispute all rel-
evant information regarding the dispute that is
received by the agency from the consumer after
the period referred to in subparagraph (A) and
before the end of the period referred to in para-
graph (1).
‘‘(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 determines that the dispute by the
consumer is frivolous or irrelevant, including by
reason of a failure by a consumer to provide
sufficient information to investigate the dis-
puted information.
‘‘(B) NOTICE OF DETERMINATION.—Upon
making any determination in accordance with
subparagraph (A) that a dispute is frivolous or
irrelevant, a consumer reporting agency shall
notify the consumer within 5 days of such de-
termination, by mail or, if authorized by the
consumer for that purpose, by any other means
available to the agency.
‘‘(C) CONTENTS
OF
NOTICE.—A notice
under subparagraph (B) shall include—
‘‘(i) the reasons for the determination
under subparagraph (A); and
‘‘(ii) identification of any information
required to investigate the disputed infor-
mation.
‘‘(4) CONSIDERATION OF CONSUMER INFORMA-
TION.—In conducting any reinvestigation under
paragraph (1) with respect to disputed information
in the file of any consumer, the consumer reporting
agency shall review and consider all relevant infor-
mation submitted by the consumer in the period de-
scribed in paragraph (1) 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 after the dele-
tion unless the person who furnishes the
information certifies that the information
is complete and accurate.
‘‘(ii) NOTICE TO CONSUMER.—If any
information which has been deleted from a
consumer’s file pursuant to subparagraph
(A) is reinserted in the file, the consumer
reporting agency shall promptly notify the
consumer of the reinsertion in writing or,
if authorized by the consumer for that pur-
pose, by any other means available to the
agency.
‘‘(iii) ADDITIONAL INFORMATION.—As
part of or in addition to the notice under
clause (ii), a consumer reporting agency
shall provide to a consumer in writing
within the 5-day period beginning on the
date of the reinsertion—
‘‘(I) a statement that the dis-
puted 
information 
has 
been
reinserted;
‘‘(II) a notice to the consumer
that if requested by the consumer the
agency shall provide to the consumer,
within 15 days after the date of the
request, the name, business address,
and telephone number of any fur-
nisher of information contacted, or of
any furnisher of information which
contacted the consumer reporting
agency, 
in 
connection 
with 
the
reinsertion of such information; and
‘‘(III) 
the 
toll-free 
telephone
number of the consumer reporting
agency that the consumer can use to
contact the agency with respect to ob-
taining the information described in
subclause (II).
‘‘(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)).
‘‘(6) 
NOTICE
OF
RESULTS
OF
REINVESTIGATION.—
‘‘(A) IN GENERAL.—A consumer reporting
agency shall provide written notice to a
consumer of the results of a reinvestigation
under this subsection within 5 days after the
completion of the reinvestigation, by mail or, if
authorized by the consumer for that purpose,
by other means available to the agency.
‘‘(B) CONTENTS.—As part of or in addi-
tion to the notice under subparagraph (A), a
consumer reporting agency shall provide to a
consumer in writing within the 5-day period
referred to in subparagraph (A)—
‘‘(i) 
a 
statement 
that 
the
reinvestigation 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
PROCEDURE.—A consumer reporting agency
shall provide to a consumer a description re-
ferred to in paragraph (6)(B)(iv) by not later
than 15 days after receiving a request from the
consumer for that description.’’.
(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. 109. 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), and (d), a consumer reporting agency may impose
a reasonable charge on a consumer—
‘‘(1) for making a disclosure to the consumer
pursuant to section 609, which—
‘‘(A) shall not exceed $8; and
‘‘(B) shall be indicated to the consumer
prior to making disclosure; and
‘‘(2) for furnishing a notification, statement,
summary, or codification to any person designated
by the consumer pursuant to section 611(d),
which—
‘‘(A) shall not exceed the charge that the
agency would impose on each designated recipi-
ent for a consumer report; and
‘‘(B) shall be indicated to the consumer
prior to furnishing such information.
‘‘(b) FREE CONSUMER REPORT AFTER ADVERSE
NOTICE TO CONSUMER.—Each consumer reporting agen-
cy that maintains a file on a consumer shall make all dis-
closures pursuant to section 609 without charge to the
consumer if, within 60 days after receipt by such
consumer of a notification pursuant to section 615 or of
a notification from a debt collection agency affiliated with
that consumer reporting agency stating that the consum-
er’s credit rating may be or has been adversely affected,
the consumer makes a request under section 609.
‘‘(c) FREE CONSUMER REPORT ANNUALLY UPON
REQUEST
OF
CONSUMER.—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 each calendar year.
‘‘(d) CHARGE
FOR
CERTAIN
NOTICES
PROHIB-
ITED.—A consumer reporting agency shall not impose any
charge for—
‘‘(1) providing any notice to a consumer re-
quired under section 611; or
‘‘(2) notifying a person pursuant to section
611(d) of the deletion of information which is found
to be inaccurate or which can no longer be verified,
if the consumer designates that person to the agency
before the end of the 30-day period beginning on the
date of the notification of the consumer under sec-
tion 611(a)(6).
‘‘(e) REFUND OF CHARGE IN CASE OF DISPUTE.—
A consumer reporting agency shall refund to a consumer
any charge assessed to the consumer for providing a
consumer report in the 60-day period ending on the date
on which the consumer notifies the agency in accordance
with section 611(a)(1), if after a reinvestigation under
that section any information in the file of the consumer
is found to be incomplete or inaccurate.’’.
SEC. 110. AMENDMENTS RELATING TO DUTIES OF USERS
OF CONSUMER REPORTS.
(a) DUTIES OF USERS TAKING ADVERSE ACTIONS.—
Section 615(a) of the Fair Credit Reporting Act (15
U.S.C. 1681m(a)) is amended to read as follows:
‘‘(a) DUTIES OF USERS TAKING ADVERSE ACTIONS
ON
THE
BASIS
OF
INFORMATION
CONTAINED
IN
CONSUMER REPORTS.—If any person takes any adverse
action with respect to any consumer in connection with
any transaction initiated by the consumer or any employ-
ment determination, which is based in whole or in part
on any information contained in a consumer report, the
person shall—
‘‘(1) provide written notice of the adverse action
to the consumer;
‘‘(2) provide to the consumer—
‘‘(A) the name, address, and telephone
number of the consumer reporting agency 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
adverse action was taken;
‘‘(3) provide to the consumer a written notice of
the consumer’s right—
‘‘(A) to obtain, under section 612, a free
copy of a consumer report on the consumer,
from the consumer reporting agency referred to
in paragraph (2) and from any other consumer
reporting agency that maintains a file on the
consumer, which notice shall include an indica-
tion of the 60-day period under that section for
obtaining such a copy; and
‘‘(B) to dispute, under section 611, with a
consumer reporting agency the accuracy or
completeness of any information in a consumer
report furnished by the agency; and
‘‘(4) in the case of an adverse action based in
whole or in part on a credit score or other predictor
of credit worthiness, provide to the consumer—
‘‘(A) notice that the predictor was used;
and
‘‘(B) the principal factors used to deter-
mine that predictor, if those factors are re-
quired to be disclosed by the person for pur-
poses of compliance with section 701(d)(3) of
the Equal Credit Opportunity Act.’’.
(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 of 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;
‘‘(D) the consumer has a right to prohibit
information contained in the consumer’s file
with any consumer reporting agency to be used
in connection with any credit transaction that 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, until the end of
the 3-year period beginning on the date on which the
offer is made to the consumer.’’.
SEC. 111. 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 ‘‘Any person who’’.
(b) MINIMUM CIVIL LIABILITY FOR WILLFUL NON-
COMPLIANCE.—Section 616(1) of the Fair Credit Report-
ing Act (15 U.S.C. 1681n(1)) is amended to read as fol-
lows:
‘‘(1)(A) any actual damages sustained by the
consumer as a result of the failure; or
‘‘(B) in the case of liability of a natural person
for obtaining a consumer report under false pre-
tenses or knowingly without a permissible purpose,
such damages or $1,000, whichever is greater;’’.
(c) CIVIL LIABILITY FOR NEGLIGENT NONCOMPLI-
ANCE.—Section 617 of the Fair Credit Reporting Act (15
U.S.C. 1681o) is amended by striking ‘‘Any consumer re-
porting agency or user of information which’’ and insert-
ing ‘‘Any person who’’.
SEC. 112. 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 622 as section 623 and inserting after section 621
the following new section:
‘‘§ 622. Responsibilities of furnishers of information
to consumer reporting agencies
‘‘(a) DUTY OF FURNISHERS OF INFORMATION TO
PROVIDE COMPLETE AND ACCURATE INFORMATION.—
‘‘(1) PROHIBITIONS.—
‘‘(A) IN
GENERAL.—A person shall not
furnish any information to any consumer re-
porting agency if the person has reasonable
cause to believe the information is incomplete or
inaccurate.
‘‘(B) ROUTINE
FURNISHERS.—A person
shall not regularly, on a routine basis, and in
the ordinary course of business furnish informa-
tion to one or more consumer reporting agen-
cies about the person’s transactions or experi-
ences with any consumer, except in compliance
with reasonable procedures which are designed
to avoid violations of this section and to assure
the accuracy of the information.
‘‘(2) DUTY TO CORRECT AND UPDATE INFOR-
MATION.—A person who—
‘‘(A) in the ordinary course of business,
regularly and on a routine basis furnishes infor-
mation to one or more consumer reporting
agencies about the person’s transactions or ex-
periences with any consumer; and
‘‘(B) furnishes information to a consumer
reporting agency, that the person determines 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.
‘‘(3) DUTY TO PROVIDE NOTICE OF CONTINU-
ING DISPUTE.—If the completeness or accuracy of
any information furnished by any person to any
consumer reporting agency continues to be disputed
to such person, the person may not furnish the in-
formation 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 furnishes infor-
mation to a consumer reporting agency regarding a
consumer who has a credit account with that person
shall notify the agency if the consumer closes the ac-
count with no outstanding balance, in information
regularly furnished for the period in which the ac-
count 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 notify the agency of the commencement
of the delinquency immediately preceding that ac-
tion, by not later than 90 days after the date of that
commencement.
‘‘(b) NOTICE TO CONSUMERS OF INFORMATION FUR-
NISHED TO CONSUMER REPORTING AGENCIES.—
‘‘(1) NOTICE REQUIRED.—A person who in the
ordinary course of business regularly and on a rou-
tine basis furnishes information about that person’s
transactions or experiences with any consumer to
any consumer reporting agency, shall give notice of
that fact in writing to the consumer before first pro-
viding any information about the consumer to any
consumer reporting agency.
‘‘(2) CONTENTS
OF
NOTICE.—Written notice
provided to a consumer by a person pursuant to
paragraph (1) shall contain the following informa-
tion:
‘‘(A) A brief description of the type of in-
formation which may be furnished regularly to
any consumer reporting agency.
‘‘(B) A brief description of the frequency
with which or the circumstances under which
information is furnished to any consumer re-
porting agency.
‘‘(3) NOTICE BY CERTAIN PERSONS.—A person
who furnishes information about consumers who
have written checks with insufficient funds may give
notice for purposes of paragraph (1) by posting the
notice in a conspicuous manner at each location
where checks are accepted by the person.
‘‘(c) DUTIES
OF FURNISHERS
OF INFORMATION
UPON NOTICE OF DISPUTE.—Upon 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 agency, the person shall,
before the end of the 30-day period beginning on the date
the agency received notice of the dispute from a consumer
in accordance with section 611(a)(1)—
‘‘(1) complete an investigation with respect to
the disputed information;
‘‘(2) review all relevant information provided by
the consumer reporting agency pursuant to section
611(a)(2);
‘‘(3) report the results of the investigation to
the consumer reporting agency; and
‘‘(4) if the investigation finds that the informa-
tion is incomplete or inaccurate, report those results
to all other consumer reporting agencies to which
the person furnished the information.’’.
(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 622 and inserting the following:
‘‘622. Responsibilities of furnishers of information to consumer reporting agen-
cies.’’.
SEC. 113. INVESTIGATIVE CONSUMER REPORTS.
Section 606 of the Fair Credit Reporting Act (15
U.S.C. 1681d) is amended—
(1) in subsection (a)(1) by striking ‘‘or’’ after
the semicolon at the end and inserting ‘‘and’’;
(2) by striking subsection (a)(2) and inserting
the following:
‘‘(2) the person certifies to the consumer re-
porting agency that—
‘‘(A) the person has made the disclosures
to the consumer required by paragraph (1); and
‘‘(B) the person will comply with sub-
section (b).’’;
(3) in subsection (b) by striking ‘‘shall’’ the sec-
ond place it appears; and
(4) by adding at the end the following:
‘‘(d) PROHIBITIONS.—
‘‘(1) CERTIFICATION.—A consumer reporting
agency shall not prepare or furnish an investigative
consumer report unless the agency has received a
certification under subsection (a)(2) from the person
who requested the report.
‘‘(2) INQUIRIES.—A consumer reporting agency
shall not make an inquiry for the purpose of prepar-
ing a consumer report on a consumer if the making
of the inquiry by an employer or prospective em-
ployer of the consumer would violate any applicable
Federal or State equal employment opportunity law
or regulation.
‘‘(3) 
PUBLIC
RECORD
INFORMATION.—A
consumer reporting agency shall not prepare or fur-
nish an investigative consumer report which includes
information which is a matter of public record unless
the agency has verified the accuracy of the informa-
tion by examining the public record.
‘‘(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 the agency
has verified the accuracy of the information by ex-
amining an independent source that is the best evi-
dence of the accuracy of the information.’’.
SEC. 114. 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. 115. ADMINISTRATIVE ENFORCEMENT.
The 2d sentence of section 621(a) of the Fair Credit
Reporting Act (15 U.S.C. 1681s(a)) is amended—
(1) by striking ‘‘Act and shall be subject to en-
forcement by the Federal Trade Commission under
section 5(b) thereof with respect to any consumer re-
porting agency or person subject to enforcement by
the Federal Trade Commission pursuant to this sub-
section, irrespective’’ and inserting ‘‘Act. All func-
tions and powers of the Federal Trade Commission
under the Federal Trade Commission Act shall be
available to the Commission to enforce compliance
with this title by any person subject to enforcement
by the Federal Trade Commission pursuant to this
subsection and not subject to enforcement pursuant
to section 8 of the Federal Deposit Insurance Act,
irrespective’’; and
(2) by inserting ‘‘, including the power to en-
force the provisions of this title in the same manner
as if the violation had been a violation of any Fed-
eral Trade Commission trade regulation rule’’ before
the period.
SEC. 116. 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 TO ENFORCE FAIR CREDIT RE-
PORTING.—
‘‘(1) AUTHORITY
OF
STATES.—Whenever the
chief law enforcement officer of the State, or an offi-
cial or agency designated by a State, has reason to
believe that any person has violated this title the
State may bring a civil action on behalf of its resi-
dents to enjoin such violation, an action to recover
for actual monetary loss, or both, and may seek such
other remedies as are provided under State law.
‘‘(2) RIGHTS OF COMMISSION.—The State shall
serve prior written notice of any such civil action
upon the Federal Trade Commission or the appro-
priate 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
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 aris-
ing therein, and (C) to file petitions for appeal.
‘‘(3) VENUE; SERVICE OF PROCESS.—Any civil
action brought under this subsection in a district
court of the United States may be brought in the
district wherein the defendant is found or is an in-
habitant or transacts business or wherein the viola-
tion occurred or is occurring, and process in such
cases may be served in any district in which the de-
fendant is an inhabitant or where the defendant may
be found.
‘‘(4) INVESTIGATORY
POWERS.—For purposes
of bringing any civil action under this subsection,
nothing in this subsection shall prevent the chief law
enforcement officer, or an official or agency des-
ignated by a State, from exercising the powers con-
ferred on the chief law enforcement officer or such
official by the laws of such State to conduct inves-
tigations or to administer oaths or affirmations or to
compel the attendance of witnesses or the production
of documentary and other evidence.
‘‘(5) EFFECT
ON
STATE
COURT
PROCEED-
INGS.—Nothing contained in this subsection shall be
construed to prohibit an authorized State official
from proceeding in State court on the basis of an al-
leged violation of any civil or criminal statute of
such State.
‘‘(6) 
LIMITATION.—Whenever 
the 
Federal
Trade Commission or the appropriate Federal regu-
lator has instituted a civil action for violation of this
title, no State may, during the pendency of such ac-
tion instituted by the Commission or the appropriate
Federal regulator, subsequently institute a civil ac-
tion against any defendant named in the complaint
of the Commission or the appropriate Federal regu-
lator for any violation of this title that is alleged in
the complaint of the Commission or the Federal reg-
ulator.’’.
SEC. 117. 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 116) the following
new subsection:
‘‘(e) INTERPRETIVE AUTHORITY.—The Federal Re-
serve Board may issue interpretations of any provision of
this title as it may apply to any persons identified under
subsection (b) (1), (2), and (3), or to the holding compa-
nies and affiliates of such persons, in consultation with
Federal agencies identified in subsection (b) (1), (2), and
(3).’’.
SEC. 118. ESTABLISHMENT OF TOLL-FREE TELEPHONE
NUMBER.
Each consumer reporting agency that compiles and
maintains files on consumers on a nationwide basis shall
establish (and thereafter maintain) a toll-free telephone
number pursuant to section 609(c)(1)(B) of the Fair
Credit Reporting Act, as amended by section 107(e) of
this Act, before the end of the 455-day period beginning
on the date of the enactment of this Act.
SEC. 119. ACTION BY FTC.
The Federal 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 270-day period beginning on the date
of the enactment of this Act.
SEC. 120. EFFECTIVE DATES OF AMENDMENTS.
(a) IN GENERAL.—Except as provided in subsection
(b), the amendments made by this title shall be effective
after the 455-day period beginning on the date of the en-
actment of this Act.
(b) EXCEPTIONS.—
(1) NOTIFICATION SYSTEM.—Section 604(d)(3)
of the Fair Credit Reporting Act, as amended by
section 104(a), shall be effective after the 365-day
period beginning on the date of the enactment of
this Act.
(2) FTC AUTHORITY.—Subsection (a) shall not
affect the authority of the Federal Trade Commis-
sion to prescribe matters under the amendments
made by this title.
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 by credit repair organizations.
‘‘405. Disclosures.
‘‘406. Credit repair organizations contracts.
‘‘407. Right to cancel contract.
‘‘408. Noncompliance with this title.
‘‘409. Civil liability.
‘‘410. Administrative enforcement.