Fair Credit Reporting for Servicemembers Act
Bill: H.R.3439 | Sponsor: Rep. Sánchez, Linda T. (D-CA)
Policy area: Finance and Financial Sector

Summary:
Fair Credit Reporting for Servicemembers Act
This bill revises consumer credit protections for service members. Specifically, the bill (1) extends consumer credit protections to certain active duty uniformed consumers in a combat zone or aboard a U.S. vessel, and (2) prohibits the inclusion on a consumer report of adverse credit information that occurred while a uniformed consumer was engaged in that type of active duty.
The bill also adds to those groups covered by specified active duty credit protections individuals in the commissioned corps of the National Oceanic and Atmospheric Administration and the Public Health Service.


To amend the Fair Credit Reporting Act to provide protections for 
   extended active duty uniformed consumers, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Credit Reporting for 
Servicemembers Act''.

SEC. 2. PROTECTIONS FOR ACTIVE DUTY UNIFORMED CONSUMER.

    (a) Definitions.--Section 603 of the Fair Credit Reporting Act (15 
U.S.C. 1681a) is amended--
            (1) in subsection (q), by amending paragraph (1) to read as 
        follows:
            ``(1) Active duty uniformed consumer.--The term `active 
        duty uniformed consumer' means a consumer who is--
                    ``(A) in military service and on active service (as 
                defined in section 101(d) of title 10, United States 
                Code); or
                    ``(B) a member of the uniformed services (as 
                defined in section 101(a) of title 10, United States 
                Code) who is not a member of the armed forces and is on 
                active service.''; and
            (2) by adding at the end the following:
    ``(bb) Extended Active Duty Uniformed Consumer.--The term `extended 
active duty uniformed consumer' means an active duty uniformed consumer 
that is deployed--
            ``(1) in a combat zone (as defined under section 112(c) of 
        the Internal Revenue Code of 1986); or
            ``(2) aboard a United States vessel.''.
    (b) Prohibition on Including Certain Adverse Information in 
Consumer Reports.--Section 605 of the Fair Credit Reporting Act (15 
U.S.C. 1681c) is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(9) Any item of adverse information about a consumer, if 
        the action or inaction that gave rise to the item occurred 
        while the consumer was an extended active duty uniformed 
        consumer.''; and
            (2) by adding at the end the following:
    ``(i) Notice of Status as an Extended Active Duty Uniformed 
Consumer.--With respect to an item of adverse information about a 
consumer, if the action or inaction that gave rise to the item occurred 
while the consumer was an extended active duty uniformed consumer, the 
consumer may provide appropriate proof, including official orders, to a 
consumer reporting agency that the consumer was an extended active duty 
uniformed consumer at the time such action or inaction occurred. The 
consumer reporting agency shall promptly delete that item of adverse 
information from the file of the consumer and notify the consumer and 
the furnisher of the information of the deletion.''.
    (c) Communications Between the Consumer and Consumer Reporting 
Agencies.--Section 605A of the Fair Credit Reporting Act (15 U.S.C. 
1681c-1) is amended--
            (1) in subsection (c)--
                    (A) by striking ``Upon'' and inserting the 
                following:
            ``(1) In general.--Upon'';
                    (B) by redesignating paragraphs (1), (2), and (3) 
                as subparagraphs (A), (B), and (C), and moving such 
                redesignated subparagraphs 2 ems to the right; and
                    (C) by adding at the end the following:
            ``(2) Negative information alert.--Any time a consumer 
        reporting agency receives an item of adverse information about 
        a consumer, if the consumer has provided appropriate proof that 
        the consumer is an extended active duty uniformed consumer, the 
        consumer reporting agency shall promptly notify the consumer--
                    ``(A) that the agency has received such item of 
                adverse information, along with a description of the 
                item; and
                    ``(B) the method by which the consumer can dispute 
                the validity of the item.
            ``(3) Contact information for extended active duty 
        uniformed consumers.--With respect to any consumer that has 
        provided appropriate proof to a consumer reporting agency that 
        the consumer is an extended active duty uniformed consumer, if 
        the consumer provides the consumer reporting agency with 
        separate contact information to be used when communicating with 
        the consumer while the consumer is an extended active duty 
        uniformed consumer, the consumer reporting agency shall use 
        such contact information for all communications while the 
        consumer is an extended active duty uniformed consumer.''; and
            (2) in subsection (e), by amending paragraph (3) to read as 
        follows:
            ``(3) subparagraphs (A) and (B) of subsection (c)(1), in 
        the case of a referral under subsection (c)(1)(C).''.
    (d) Conforming Amendment.--The Fair Credit Reporting Act (15 U.S.C. 
1681 et seq.) is amended by striking ``active duty military'' each 
place such term appears and inserting ``active duty uniformed''.
    (e) Sense of Congress.--It is the sense of Congress that any person 
making use of a consumer report containing an item of adverse 
information should, if the action or inaction that gave rise to the 
item occurred while the consumer was an extended active duty uniformed 
consumer, take such fact into account when evaluating the 
creditworthiness of the consumer.
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