To amend the Servicemembers Civil Relief Act to protect the credit of servicemembers deployed to an overseas combat zone and to facilitate awareness of a servicemember's rights under such Act, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Servicemembers Credit Protection 
Act''.

SEC. 2. NOTICE OF DEPLOYMENT REQUIRED.

    (a) In General.--The Servicemembers Civil Relief Act (50 U.S.C. 
App. 501 et seq.) is amended by adding at the end the following new 
title:

                   ``TITLE VIII--NOTICE OF DEPLOYMENT

``SEC. 801. NOTICE TO CONSUMER REPORTING AGENCIES.

    ``(a) In General.--In the case of the deployment of a servicemember 
away from the usual duty station of the servicemember to duty for which 
the servicemember is entitled to special pay under section 310(a) of 
title 37, United States Code, the Secretary shall--
            ``(1) notify each consumer reporting agency that compiles 
        and maintains files on consumers on a nationwide basis of the 
        deployment of the servicemember within 30 days after the 
        deployment, together with such information as may be necessary 
        to permit such consumer reporting agency to comply with section 
        605C of the Fair Credit Reporting Act with respect to the 
        servicemember; and
            ``(2) notify each such consumer reporting agency when the 
        notice under paragraph (1) ceases to apply with respect to such 
        servicemember within 30 days after the end of the deployment.
    ``(b) Administrative Action.--The Secretary shall consult with each 
consumer reporting agency that compiles and maintains files on 
consumers on a nationwide basis and take such action as may be 
appropriate to ensure that the Secretary and such consumer reporting 
agency can comply with the requirements of this section and section 
605C of the Fair Credit Reporting Act in a timely manner.
    ``(c) Definition.--For purposes of this section, the term `consumer 
reporting agency that compiles and maintains files on consumers on a 
nationwide basis' has the meaning given to such term in section 603(p) 
of the Fair Credit Reporting Act.

``SEC. 802. INCREASE IN PENALTIES FOR CERTAIN VIOLATIONS INVOLVING 
              SERVICEMEMBERS DEPLOYED TO AN OVERSEAS COMBAT ZONE.

    ``(a) In General.--In the case of any person who is subject to a 
penalty under section 301(c)(1), 302(b)(1), 303(d)(1), 305(h)(1), 
306(e)(1), or 307(e)(1) in a case involving a servicemember whose 
consumer report, at the time of the violation giving rise to such 
person's liability for the penalty, contains a combat zone duty alert, 
such section shall be applied by substituting `not more than 3 years' 
for `not more than one year'.
    ``(b) Definitions.--For purposes of subsection (a), the terms 
`combat zone duty alert' and `consumer report' have the same meanings 
as in section 603 of the Fair Credit Reporting Act.''.
    (b) Clerical Amendment.--The table of contents for the 
Servicemembers Civil Relief Act (50 U.S.C App. 501 et seq.) is amended 
by inserting after the item relating to section 706 the following new 
items:

                   ``TITLE VIII--NOTICE OF DEPLOYMENT

``Sec. 801. Notice to consumer reporting agencies.
``Sec. 802. Increase in penalties for certain violations involving 
                            servicemembers deployed to an overseas 
                            combat zone.''.

SEC. 3. NOTATIONS IN CONSUMER FILES OF SERVICEMEMBERS.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) is amended by inserting after section 605B the following new 
section:
``Sec. 605C. Combat zone duty alert
    ``(a) In General.--Each consumer reporting agency described in 
section 603(p) that receives a notice under section 801(a)(1) of the 
Servicemembers Civil Relief Act from the Secretary of Defense with 
respect to a consumer who is a servicemember (as defined in section 
101(1) of such Act) shall--
            ``(1) include a combat zone duty alert in the file of that 
        consumer, and also provide that alert along with any credit 
        score generated in using that file, until notified by the 
        Secretary of Defense that such consumer no longer qualifies for 
        such alert; and
            ``(2) during the period such alert is in effect, exclude 
        the consumer from any list of consumers prepared by the 
        consumer reporting 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.
    ``(b) Information on Consumer's Rights Required To Be Included.--
The combat zone duty alert included in any consumer's file pursuant to 
subsection (a) shall include a summary of the rights of the consumer 
under the Servicemembers Civil Relief Act and the duties of creditors 
and other persons under such Act to the consumer.
    ``(c) Notice to Furnishers of Adverse Information.--If any person, 
including another consumer reporting agency, furnishes adverse 
information to a consumer reporting agency described in section 603(p) 
with respect to a consumer whose file includes a combat zone duty alert 
under subsection (a)(1), the consumer reporting agency shall notify 
such person of the existence of the combat zone duty alert in the file 
of such consumer together with the summary of rights and duties 
described in subsection (b).
    ``(d) Duty of Reseller To Reconvey Alert.--A reseller shall include 
in its report any combat zone duty alert placed in the file of a 
consumer pursuant to this section by another consumer reporting agency.
    ``(e) Procedures.--Each consumer reporting agency described in 
section 603(p) shall establish policies and procedures to comply with 
this section and shall cooperate with the Secretary of Defense in 
establishing such procedures to ensure effective compliance with the 
requirements of this section.
    ``(f) Notice From Secretary.--This section shall cease to apply to 
with respect to any consumer as of the date the consumer reporting 
agency described in section 603(p) receives a notice from the Secretary 
of Defense under section 801(a)(2) relating to such consumer.''.
    (b) Definitions.--
            (1) In general.--Subsection (q) of section 603 of the Fair 
        Credit Reporting Act (15 U.S.C. 1681a(q)) is amended by adding 
        at the end the following new paragraph:
            ``(6) Combat zone duty alert.--The term `combat zone duty 
        alert' means a statement in the file of a consumer that--
                    ``(A) notifies all prospective users of a consumer 
                report relating to the consumer that the consumer is 
                serving as a servicemember in a combat zone and 
                includes any information required under section 605C; 
                and
                    ``(B) is presented in a manner that facilitates a 
                clear and conspicuous view of the statement described 
                in subparagraph (A) by any person requesting such 
                consumer report.''.
            (2) Technical and conforming amendment.--The heading for 
        subsection (q) of section 603 of the Fair Credit Reporting Act 
        (15 U.S.C. 1681a(q)) is amended by inserting ``and Military'' 
        after ``to Fraud''.
    (c) Clerical Amendment.--The table of sections for title VI of the 
Consumer Credit Protection Act is amended by inserting after the item 
relating to section 605B the following new item:

``605C. Combat zone duty alert.''.

Summary: Servicemembers Credit Protection Act - Amends the Servicemembers Civil Relief Act to direct the Secretary of Defense, in case of the deployment of a servicemember away from their usual duty station to duty for which the servicemember is entitled to special pay, to notify each consumer reporting agency (agency): (1) of the deployment of such servicemember within 30 days after the deployment; and (2) within 30 days after the end of such deployment. Requires the Secretary, in providing such notice, to take measures to ensure agency compliance with provisions of the Fair Credit Reporting Act with respect to the servicemember.

Increases penalties for consumer credit reporting violations involving servicemembers deployed to an overseas combat zone.

Amends the Fair Credit Reporting Act to require each agency that receives a combat zone duty alert from the Secretary with respect to a servicemember to: (1) include the alert in the file of that consumer and provide such alert along with any credit score, until notified by the Secretary that the consumer no longer qualifies for such alert; and (2) during the period of the alert, exclude the consumer from any list provided to a third party to offer credit or insurance to such consumer as part of a transaction not initiated by the consumer.

Requires the combat zone duty alert included in any consumer's file to include a summary of the consumer's rights under the Servicemembers Civil Relief Act and the duties of creditors and other persons to the consumer.