Restoring Unfairly Impaired Credit and Protecting Consumers Act
Bill: H.R.4115 | Sponsor: Rep. Tlaib, Rashida (D-MI)
Policy area: Finance and Financial Sector

Summary:
Restoring Unfairly Impaired Credit and Protecting Consumers Act
This bill revises requirements regarding consumer credit information included by a consumer reporting agency on a credit report, including by
The bill also requires a consumer reporting agency to provide free credit monitoring and identity theft protection services to certain consumers, including victims of fraud, active duty military, and those 65 years of age and older.

To amend the Fair Credit Reporting act to restore the impaired credit 
   of victims of predatory activities and unfair consumer reporting 
 practices, to expand access to tools to protect vulnerable consumers 
  from identity theft, fraud, or a related crime, and protect victims 
               from further harm, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Restoring Unfairly 
Impaired Credit and Protecting Consumers Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Effective date.
Sec. 4. General Bureau rulemaking.
    TITLE I--RESTORING THE IMPAIRED CREDIT OF VICTIMS OF PREDATORY 
           ACTIVITIES AND UNFAIR CONSUMER REPORTING PRACTICES

Sec. 101. Shortens the time period that most adverse credit information 
                            stays on consumer reports.
Sec. 102. Mandates the expedited removal of fully paid or settled debt 
                            from consumer reports.
Sec. 103. Imposes restrictions on the appearance of medical collections 
                            on consumer reports and requires the 
                            expedited removal of fully paid or settled 
                            medical collections from consumer reports.
Sec. 104. Provides credit restoration for victims of predatory mortgage 
                            lending and servicing.
Sec. 105. Provides credit relief for private education loans borrowers 
                            who were defrauded or mislead by 
                            proprietary education institution or career 
                            education programs.
Sec. 106. Establishes right for victims of financial abuse to have 
                            adverse information associated with an 
                            abuser's fraudulent activity removed from 
                            their consumer reports.
Sec. 107. Prohibits treatment of credit restoration or rehabilitation 
                            as adverse information.
  TITLE II--EXPANDING ACCESS TO TOOLS TO PROTECT VULNERABLE CONSUMERS 
  FROM IDENTITY THEFT, FRAUD, OR A RELATED CRIME, AND PROTECT VICTIMS 
                           FROM FURTHER HARM

Sec. 201. Identity theft report definition.
Sec. 202. Amendment to protection for files and credit records of 
                            protected consumers.
Sec. 203. Enhances fraud alert protections.
Sec. 204. Amendment to security freezes for consumer reports.
Sec. 205. Clarification of information to be included with agency 
                            disclosures.
Sec. 206. Provides access to fraud records for victims.
Sec. 207. Required Bureau to set procedures for reporting identity 
                            theft, fraud, and other related crime.
Sec. 208. Establishes the right to free credit monitoring and identity 
                            theft protection services for certain 
                            consumers.
Sec. 209. Ensures removal of inquiries resulting from identity theft, 
                            fraud, or other related crime from consumer 
                            reports.
                        TITLE III--MISCELLANEOUS

Sec. 301. Definitions.
Sec. 302. Technical correction related to risk-based pricing notices.
Sec. 303. FCRA findings and purpose; voids certain contracts not in the 
                            public interest.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) General findings.--
                    (A) Consumer reporting agencies (``CRAs'') are 
                companies that collect, compile, and provide 
                information about consumers in the form of consumer 
                reports for certain permissible statutory purposes 
                under the Fair Credit Reporting Act (15 U.S.C. 1681 et 
                seq.) (``FCRA''). The three largest CRAs in this 
                country are Equifax, TransUnion, and Experian. These 
                CRAs are referred to as nationwide CRAs and the reports 
                that they prepare are commonly referred to as credit 
                reports. Furnishers, such as creditors, lenders, and 
                debt collection agencies, voluntarily submit 
                information to CRAs about their accounts such as the 
                total amount for each loan or credit limit for each 
                credit card and the consumer's payment history on these 
                products. Reports also include identifying information 
                about a consumer, such as their birthdate, previous 
                mailing addresses, and current and previous employers.
                    (B) In a December 2012 paper, ``Key Dimensions and 
                Processes in the U.S. Credit Reporting System: A review 
                for how the nation's largest credit bureaus manage 
                consumer data'', the Bureau of Consumer Financial 
                Protection (``Consumer Bureau'') noted that the three 
                nationwide CRAs maintain credit files on approximately 
                200 million adults and receive information from about 
                10,000 furnishers. On a monthly basis, these furnishers 
                provide information on over 1.3 billion consumer credit 
                accounts or other trade lines.
                    (C) The 10 largest institutions furnishing credit 
                information to each of the nationwide CRAs account for 
                more than half of all accounts reflected in consumers' 
                credit files.
                    (D) Consumer reports play an increasingly important 
                role in the lives of American consumers. Most 
                creditors, for example, review these reports to make 
                decisions about whether to extend credit to consumers 
                and what terms and conditions to offer them. As such, 
                information contained in these reports affects whether 
                a person is able to get a private education loan to pay 
                for college costs, to secure a mortgage loan to buy a 
                home, or to obtain a credit card, as well as the terms 
                and conditions under which consumer credit products or 
                services are offered to them.
                    (E) Credit reports are also increasingly used for 
                many noncredit decisions, including by landlords to 
                determine whether to rent an apartment to a prospective 
                tenant and by employers to decide whether to hire 
                potential job applicants or to offer a promotion to 
                existing employees.
                    (F) CRAs have a statutory obligation to verify 
                independently the accuracy and completeness of 
                information included on the reports that they provide.
                    (G) The nationwide CRAs have failed to establish 
                and follow reasonable procedures, as required by 
                existing law, to establish the maximum level of 
                accuracy of information contained on consumer reports. 
                Given the repeated failures of these CRAs to comply 
                with accuracy requirements on their own, legislation is 
                intended to provide them with detailed guidance 
                improving the accuracy and completeness of information 
                contained in consumer reports, including procedures, 
                policies, and practices that these CRAs should already 
                be following to ensure full compliance with their 
                existing obligations.
                    (H) The presence of inaccurate or incomplete 
                information on these reports can result in substantial 
                financial and emotional harm to consumers. Credit 
                reporting errors can lead to the loss of a new 
                employment opportunity or a denial of a promotion in an 
                existing job, stop someone from being able to access 
                credit on favorable terms, prevent a person from 
                obtaining rental housing, or even trigger mental 
                distress.
                    (I) Current industry practices impose an unfair 
                burden of proof on consumers trying to fix errors on 
                their reports.
                    (J) Consumer reports containing inaccurate or 
                incomplete credit information also undermine the 
                ability of creditors and lenders to effectively and 
                accurately underwrite and price credit.
                    (K) Recognizing that credit reporting affects the 
                lives of almost all consumers in this country and that 
                the consequences of errors on a consumer report can be 
                catastrophic for a consumer, the Consumer Bureau began 
                accepting consumer complaints about credit reporting in 
                October 2012.
                    (L) As of February 2017, the Consumer Bureau has 
                handled approximately 185,717 credit reporting 
                complaints, making credit reporting consistently the 
                third most-complained-about subject matter on which the 
                Consumer Bureau accepts consumer complaints.
                    (M) In the ``Monthly Complaint Report Volume 20'', 
                released in February 2017, the Consumer Bureau noted 
                that 76 percent of credit reporting complaints involved 
                incorrect information on reports, with consumers 
                frequently expressing their frustrations about the 
                burdensome and time-consuming process to disputing 
                items.
                    (N) Other common types of credit reporting 
                complaints submitted to the Consumer Bureau related to 
                the improper use of a report, trouble obtaining a 
                report or credit score, CRAs' investigations, and 
                credit monitoring or identity protection.
                    (O) In the summer 2015 ``Supervisory Highlights'', 
                the Consumer Bureau noted that one or more of the 
                largest CRAs failed to adequately oversee furnishers to 
                ensure that they were adhering to the CRA's vetting 
                policies and to establish proper procedures to verify 
                public record information.
                    (P) According to the fall 2016 ``Supervisory 
                Highlights'', Consumer Bureau examiners determined that 
                one or more debt collectors never investigated indirect 
                disputes that lacked detail or were not accompanied by 
                attachments with relevant information from the 
                consumer. Examiners also found that notifications sent 
                to consumers about disputes considered frivolous failed 
                to identify for the consumers the type of material that 
                they could provide in order for the debt collector to 
                complete the investigation of the disputed item.
                    (Q) A February 2014 Consumer Bureau report titled 
                ``Credit Reporting Complaint Snapshot'' found that 
                consumers are confused about the extent to which the 
                nationwide CRAs are required to provide them with 
                validation and documentation of a debt that appears on 
                their credit report.
                    (R) As evidence that the current system lacks 
                sufficient market incentives for CRAs to develop more 
                robust procedures to increase the accuracy and 
                completeness of information on credit reports, 
                litigation discovery documented by the National 
                Consumer Law Center (``NCLC''), as part of a January 
                2009 report titled, ``Automated Injustice: How a 
                Mechanized Dispute System Frustrates Consumers Seeking 
                to Fix Errors in Their Credit Reports'', showed that at 
                least two of the three largest CRAs use quota systems 
                to force employees to process disputes hastily and 
                without the opportunity for conducting meaningful 
                investigations. At least one nationwide CRA only 
                allowed dispute resolution staff five minutes to handle 
                a consumer's call. Furthermore, these CRAs were found 
                to have awarded bonuses for meeting quotas and punished 
                those who didn't meet production numbers with 
                probation.
                    (S) Unlike most other business relationships, where 
                consumers can register their satisfaction or 
                unhappiness with a particular credit product or service 
                simply by taking their business elsewhere, consumers 
                have no say in whether their information is included in 
                the CRAs databases and limited legal remedies to hold 
                the CRAs accountable for inaccuracies or poor service.
                    (T) Accordingly, despite the existing statutory 
                mandate for CRAs to follow reasonable procedures to 
                assure the maximum possible accuracy of the information 
                whenever they prepare consumer reports, numerous 
                studies, the high volume of consumer complaints 
                submitted to the Consumer Bureau about incorrect 
                information on consumer reports, and supervisory 
                activities by the Consumer Bureau demonstrate that CRAs 
                continue to skirt their obligations under the law.
            (2) Private education loans.--
                    (A) The Consumer Bureau's October 2014 report 
                titled ``Annual Report of the CFPB Student Loan 
                Ombudsman'' noted many private education loan 
                borrowers, who sought to negotiate a modified repayment 
                plan when they were experiencing a period of financial 
                distress, were unable to get assistance from their loan 
                holders, which often resulting in them defaulting on 
                their loans. This pattern resembles the difficulty that 
                a significant number of mortgage loan borrowers 
                experienced when they sought to take responsible steps 
                to work with their mortgage loan servicer to avoid 
                foreclosure during the Great Recession.
                    (B) Although private student loan holders may allow 
                a borrower to postpone payments while enrolled in 
                school full-time, many limit this option to a certain 
                time period, usually 48 to 66 months. This limited time 
                period may not be sufficient for those who need 
                additional time to obtain their degree or who want to 
                continue their education by pursing a graduate or 
                professional degree. The Consumer Bureau found that 
                borrowers who were unable to make payments often 
                defaulted or had their accounts sent to collections 
                before they were even able to graduate.
            (3) Deceptive practices at certain proprietary education 
        institutions and career education programs.--
                    (A) NCLC cited the proliferation of law enforcement 
                actions against many for-profit schools in its June 
                2014 report, titled ``Ensuring Educational Integrity: 
                10 Steps to Improve State Oversight of For-profit 
                Schools'', to demonstrate the pervasive problem in this 
                sector of targeting low-income students with deceptive 
                high-pressure sales techniques involving inflated job 
                placement rates and misleading data on graduate wages, 
                and false representations about the transferability of 
                credits and the employability of graduates in 
                occupations that require licensure. Student loan 
                borrowers at these schools may be left with nothing but 
                worthless credentials and large debt. Those who default 
                on their student loans face years with damaged credit 
                that will adversely impact their ability to rent or buy 
                homes, purchase cars, and find employment.
                    (B) The closure and bankruptcy of Corinthian 
                Colleges, which was found to have deceived students by 
                steering them into high-interest student loans based on 
                misleading graduation rates and employment data, is a 
                good example of the problem. Even after its closure, 
                many Corinthian students remained saddled with student 
                loan debt, worthless degrees, and few prospects for 
                employment.
                    (C) Attending a two-year, for-profit college costs, 
                on average, four times as much as attending a community 
                college. Students at for-profit colleges represent only 
                about 11 percent of the total higher education 
                population but a startling 44 percent of all Federal 
                student loan defaults, according to the United States 
                Department of Education (``DOE'').
                    (D) According to NCLC, a disproportionate number of 
                for-profit students are low-income and people of color. 
                These schools target veterans, working parents, first-
                generation students, and non-English speaking students, 
                who may be more likely than their public or private 
                nonprofit school counterparts to drop out, incur 
                enormous student debt, and default on this debt. In the 
                2011-2012 school year, 28 percent of African Americans 
                and 15 percent of Latinos attending four-year 
                institutions were enrolled in a for-profit school, 
                compared to 10 percent of Whites.
                    (E) As highlighted in a press release titled 
                ``Obama Administration Announces Final Rules to Protect 
                Students from Poor-Performing Career College 
                Programs'', that was issued by the DOE on October 30, 
                2014, ``[t]oo often, students at career colleges--
                including thousands of veterans--are charged excessive 
                costs, but don't get the education they paid for. 
                Instead, students in such programs are provided with 
                poor quality training, often for low-wage jobs or in 
                occupations where there are simply no job 
                opportunities. They find themselves with large amounts 
                of debt and, too often, end up in default. In many 
                cases, students are drawn into these programs with 
                confusing or misleading information.''.
            (4) Medical debt.--
                    (A) Research by the Consumer Bureau has found that 
                the inclusion of medical collections on consumer 
                reports has unfairly reduced consumers' credit scores.
                    (B) The Consumer Bureau's review of 5 million 
                anonymized credit files from September 2011 to 
                September 2013, for example, found that credit scores 
                may underestimate a person's creditworthiness by up to 
                10 points for those who owe medical debt, and may 
                underestimate a person's creditworthiness by up to 22 
                points after the medical debt has been paid. For 
                consumers with lower credit scores, especially those on 
                the brink of what is considered subprime, a 10 to 22 
                point decrease in their credit scores can have a 
                significant impact on their lives, including by 
                affecting whether they are able to qualify for credit 
                and, if so, the terms and conditions under which it is 
                extended to them.
                    (C) The Consumer Bureau found that half of all 
                collections trade lines that appear on consumer reports 
                are related to medical bills claimed to be owed to 
                hospitals and other medical providers. These trade 
                lines affect the reports of nearly 1/5 of all consumers 
                in the credit reporting system.
                    (D) The Consumer Bureau has found that there are no 
                objective or enforceable standards that determine when 
                a debt can or should be reported as a collection trade 
                line. Because debt buyers and collectors determine 
                whether, when, and for how long to report a collection 
                account, there is only a limited relationship between 
                the time period reported, the severity of a 
                delinquency, and when or whether a collection trade 
                line appears on a consumer's credit report.
                    (E) Medical bills can be complex and confusing for 
                many consumers, which results in consumers' uncertainty 
                about what they owe, to whom, when, or for what, that 
                may cause some people, who ordinarily pay their bills 
                on time, to delay or withhold payments on their medical 
                debts. This uncertainty can also result in medical 
                collections appearing on consumer reports. In a 
                December 2014 report titled ``Consumer Credit Reports: 
                A Study of Medical and Non-Medical Collections'', the 
                Consumer Bureau found that a large portion of consumers 
                with medical collections show no other evidence of 
                financial distress and are consumers who ordinarily pay 
                their other financial obligations on time. Unlike with 
                most credit products or services, such as credit cards, 
                installment loans, utilities, or wireless or cable 
                services that have contractual account disclosures 
                describing the terms and conditions of use, most 
                consumers are not told what their out-of-pocket medical 
                costs will be in advance. Consumers needing urgent or 
                emergency care rarely know, or are provided, the cost 
                of a medical treatment or procedure before the service 
                is rendered.
                    (F) The Consumer Bureau concluded that the presence 
                of medical collections is less predictive of future 
                defaults or serious delinquencies than the presence of 
                a nonmedical collection in a study titled ``Data Point: 
                Medical Debt and Credit Scores'', issued in May 2014.
                    (G) FICO's latest credit scoring model, ``FICO 9'', 
                changes the treatment of paid collections to disregard 
                any collection matters that the consumer has paid in 
                full. FICO 9, however, is not yet widely used by 
                lenders.
                    (H) VantageScore's latest credit scoring model, 
                ``VantageScore 4.0'', will be available in the fall of 
                2017. This model will penalize medical collections less 
                than non-medical ones.
                    (I) The three nationwide CRAs entered into a 
                settlement agreement with the New York State attorney 
                general in 2015 to address deficiencies in their 
                dispute resolution process and enhance the accuracy of 
                items on reports. These policy changes will be 
                implemented in a three-phrased rollout, culminating by 
                June 2018. Subsequently, these CRAs entered into a 
                cooperative agreement with 31 State Attorneys General, 
                which was the basis of the creation of the National 
                Consumer Assistance Plan (``NCAP'') to change some of 
                their business practices.
                    (J) While the CRAs appear to be voluntarily 
                adopting policy changes on a nationwide basis, they are 
                not obligated to do so for consumers who reside in 
                States that are not party to any of the consent orders.
                    (K) As a result of the settlement agreements, the 
                three nationwide CRAs will set a 180-day waiting period 
                before including medical collections on a report and 
                will remove a medical collection from a report once it 
                is paid by an insurance company. While this change will 
                benefit many, once a medical collection appears on a 
                report, it will only be deleted or suppressed if it is 
                found to have been the insurance company's obligation 
                to pay and the insurer pays it. Given the research 
                showing there is little predictive value in medical 
                debt information, medical collections that are paid or 
                settled should quickly be removed from a report, 
                regardless of who pays or settles this debt.
            (5) Financial abuse by known persons.--
                    (A) Financial abuse and exploitation are frequently 
                associated with domestic violence. This type of abuse 
                may result in fraudulent charges to a credit card or 
                having fraudulent accounts created by the abuser in the 
                survivor's name. Financial abuse may also result in the 
                survivor's inability to make timely payments on their 
                valid obligations due to loss or changes in income that 
                can occur when their abuser steals from or coerces the 
                survivor to relinquish their paychecks or savings.
                    (B) By racking up substantial debts in the 
                survivor's name, abusers are able to exercise financial 
                control over their survivors to make it economically 
                difficult for the survivor, whose credit is often 
                destroyed, to escape the situation.
                    (C) Domestic abuse survivors with poor credit are 
                likely to face significant obstacles in establishing 
                financial independence from their abusers. This can be 
                due, in part, because consumer reports may be used when 
                a person attempts to obtain a checking account, 
                housing, insurance, utilities, employment, and even a 
                security clearance as required for certain jobs.
                    (D) Providing documentation of identity (``ID'') 
                theft in order to dispute information on one's consumer 
                report can be particularly challenging for those who 
                know their financial abuser.
                    (E) While it is easier for consumers who obtain a 
                police report to remove fraudulent information from 
                their consumer report and prevent it from reappearing 
                in the future, according to the Empire Justice Center, 
                safety and other noncredit concerns may impact the 
                capacity of a survivor of financial abuse committed by 
                a known person to turn to law enforcement to get a 
                police report.
                    (F) According to the Legal Aid Society in New York, 
                domestic abuse survivors, seeking to remove adverse 
                information stemming from financial abuse by contacting 
                their furnishers directly, are likely to face 
                skepticism about claims of ID theft perpetrated by a 
                partner because of an assumption that they are aware 
                of, and may have been complicit in, the activity which 
                the survivor alleges stems from financial abuse.
            (6) Deceptive and misleading marketing practices.--
                    (A) The Consumer Bureau's February 2015 report 
                titled ``Consumer Voices on Credit Reports and Scores'' 
                found that some consumers did not obtain a copy of 
                their consumer report due to concerns about security or 
                of being trapped into purchasing unwanted products like 
                an additional report or a credit monitoring service.
                    (B) In January 2017, the Consumer Bureau fined 
                TransUnion and Equifax for deceptively marketing credit 
                scores for purchase by consumers as the same credit 
                scores typically used by lenders to determine 
                creditworthiness and for luring consumers into costly 
                subscription services that were advertised as ``free'' 
                or ``$1'' that automatically charged recurring fees 
                unless cancelled by consumers. The Consumer Bureau also 
                found that Equifax was illegally advertising its 
                products on webpages that consumers accessed through 
                AnnualCreditReport.com before consumers obtained their 
                free disclosures. Because of these troubling practices, 
                TransUnion was ordered to pay $13.9 million in 
                restitution to harmed consumers and a civil penalty of 
                $3 million to the Consumer Bureau. Equifax was ordered 
                to pay more than $3.7 million to affected consumers as 
                well as a civil money penalty of $2.5 million to the 
                Consumer Bureau. As part of the consent orders, the 
                CRAs are also supposed to change the way that they sell 
                their products to consumers. The CRAs must also obtain 
                consumers' express consent before enrolling them into 
                subscription services as well as make it easer for 
                consumers to cancel these programs.
                    (C) The Consumer Bureau fined the other nationwide 
                CRA--Experian--in March 2017 for deceiving consumers 
                about the use of credit scores that it marketed and 
                sold to consumers as credit scores that were used by 
                lenders and for illegally advertising its products on 
                web pages that consumers accessed through 
                AnnualCreditReport.com before they obtained their free 
                annual disclosures. Experian was ordered to pay more 
                than $3.7 million in restitution to harmed consumers 
                and a civil monetary penalty of $2.5 million to the 
                Consumer Bureau.
                    (D) The Consumer Bureau's January and March 2017 
                consent orders with the three nationwide CRAs show that 
                these CRAs have enticed consumers into purchasing 
                products and services that they may not want or need, 
                in some instances by advertising products or services 
                ``free'' that automatically converted into an ongoing 
                subscription service at the regular price unless 
                cancelled by the consumer. Although these CRAs must now 
                change their deceptive marketing practices, codifying 
                these duties is an appropriate way to ensure that these 
                companies never revert back to such misleading tactics.
                    (E) Given the ubiquitous use of consumer reports in 
                consumers' lives and the fact that consumers' 
                participation in the credit reporting system is 
                involuntary, CRAs should also prioritize providing 
                consumers with the effective means to safeguard their 
                personal and financial information and improve their 
                credit standing, rather than seeking to exploit 
                consumers' concerns and confusion about credit 
                reporting and scoring, to boost their companies' 
                profits.
                    (F) Vulnerable consumers, who have legitimate 
                concerns about the security of their personal and 
                financial information, deserve clear, accurate, and 
                transparent information about the credit reporting 
                tools that may be available to them, such as fraud 
                alerts and freezes.
            (7) Protections for consumers' credit information.--
                    (A) Despite heightened awareness, incidents of ID 
                theft continue to rise. In February 2015, the FTC 
                reported that ID theft was the top consumer complaint 
                that it received for the 15th consecutive year. As 
                these incidents increase, consumers experience 
                significant financial loss and emotional distress from 
                the inability to safeguard effectively and 
                inexpensively their credit information from bad actors.
                    (B) According to a Carnegie Mellon study, children 
                are 50 times more likely than adults to have their 
                identities stolen. Child identities are valuable to 
                thieves because most children do not have existing 
                files, and their parents may not notice fraudulent 
                activity until their child applies for a student loan, 
                a job, or a credit card. As a result, the fraudulent 
                activity of the bad actors may go undetected for years.
                    (C) Despite the increasing incidents of children's 
                ID theft, parents who want to proactively prevent their 
                children from having their identity stolen, may not be 
                able to do so. Only one of the three nationwide CRAs 
                currently allows parents from any State to set up a 
                freeze for a minor child. At the other two nationwide 
                CRAs, parents can only obtain a freeze after a child 
                has become an ID theft victim because, it is only at 
                this point, that these CRAs have an existing credit 
                file for the child. While many States have enacted laws 
                to address this problem, there is no existing Federal 
                law.
                    (D) According to Javelin Strategy & Research's 2015 
                Identity Fraud study, $16 billion was stolen by 
                fraudsters from 12.7 million American consumers in 
                2014. Similarly, the United States Department of 
                Justice found an estimated 7 percent of all residents 
                age 16 or older (about 17.6 million persons) in this 
                country were victims of one or more incidents of ID 
                theft in 2014, and the number of elderly victims age 65 
                or older (about 86 percent) increased from 2.1 million 
                in 2012 to 2.6 million in 2014.
                    (E) Consumers frequently express concern about the 
                security of their financial information. According to a 
                2015 MasterCard survey, a majority of consumers (77 
                percent) have anxiety about the possibility that their 
                financial information and Social Security numbers may 
                be stolen or compromised, with about 55 percent of 
                consumers indicating that they would rather have naked 
                pictures of themselves leaked online than have their 
                financial information stolen.
                    (F) That survey also revealed that consumers' fears 
                about the online security of their financial 
                information even outweighed consumers' worries about 
                other physical security dangers such as having their 
                houses robbed (59 percent) or being pickpocketed (46 
                percent).
                    (G) According to Consumer Reports, roughly 50 
                million American consumers spent about $3.5 billion in 
                2010 to purchase products aimed at protecting their 
                identity, with the annual cost of these services 
                ranging from $120 to $300. As risks to consumers' 
                personal and financial information continue to grow, 
                consumers need additional protections to ensure that 
                they have fair and reasonable access to the full suite 
                of ID theft and fraud prevention measures that may be 
                right for them.

SEC. 3. EFFECTIVE DATE.

    Except as otherwise specified, the amendments made by this Act 
shall take effect 2 years after the date of the enactment of this Act.

SEC. 4. GENERAL BUREAU RULEMAKING.

    Except as otherwise provided, not later than the end of the 2-year 
period beginning on the date of the enactment of this Act, the Bureau 
of Consumer Financial Protection shall issue final rules to implement 
the amendments made by this Act.

    TITLE I--RESTORING THE IMPAIRED CREDIT OF VICTIMS OF PREDATORY 
           ACTIVITIES AND UNFAIR CONSUMER REPORTING PRACTICES

SEC. 101. SHORTENS THE TIME PERIOD THAT MOST ADVERSE CREDIT INFORMATION 
              STAYS ON CONSUMER REPORTS.

    (a) In General.--Section 605 of the Fair Credit Reporting Act (15 
U.S.C. 1681c) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Except as authorized under 
                subsection (b), no'' and inserting ``No'';
                    (B) in paragraph (1), by striking ``10 years'' and 
                inserting ``7 years'';
                    (C) in paragraph (2), by striking ``Civil suits, 
                civil judgments, and records'' and inserting 
                ``Records'';
                    (D) in paragraph (3), by striking ``seven years'' 
                and inserting ``4 years'';
                    (E) in paragraph (4), by striking ``seven years'' 
                and inserting ``4 years, except as provided in 
                paragraph (8), (10), (11), (12), or (13), or as 
                required by section 605C, 605D, 605E, or 605F'';
                    (F) in paragraph (5)--
                            (i) by striking ``, other than records of 
                        convictions of crimes''; and
                            (ii) by striking ``seven years'' and 
                        inserting ``4 years, except as required by 
                        section 605C, 605D, 605E, or 605F''; and
                    (G) by adding at the end the following new 
                paragraphs:
            ``(9) Civil suits and civil judgments (except as provided 
        in paragraph (8)) that, from date of entry, antedate the report 
        by more than 4 years or until the governing statute of 
        limitations has expired, whichever is the longer period.
            ``(10) A civil suit or civil judgment--
                    ``(A) brought by a private education loan holder 
                that, from the date of successful completion of credit 
                restoration or rehabilitation in accordance with the 
                requirements of section 605D or 605E, antedates the 
                report by 45 calendar days; or
                    ``(B) brought by a lender with respect to a covered 
                residential mortgage loan that antedates the report by 
                45 calendar days.
            ``(11) Records of convictions of crimes which antedate the 
        report by more than 7 years.
            ``(12) Any other adverse item of information relating to 
        the collection of debt that did not arise from a contract or an 
        agreement to pay by a consumer, including fines, tickets, and 
        other assessments, as determined by the Bureau, excluding tax 
        liability.'';
            (2) by striking subsection (b) and redesignating 
        subsections (c) through (h) as subsections (b) through (g), 
        respectively; and
            (3) in subsection (b) (as so redesignated), by striking 
        ``7-year period referred to in paragraphs (4) and (6)'' and 
        inserting ``4-year period referred to in paragraphs (4) and 
        (5)''.
    (b) Conforming Amendments.--The Fair Credit Reporting Act (15 
U.S.C. 1681) is amended--
            (1) in section 616(d), by striking ``section 605(g)'' each 
        place that term appears and inserting ``section 605(f)''; and
            (2) in section 625(b)(5)(A), by striking ``section 605(g)'' 
        and inserting ``section 605(f)''.

SEC. 102. MANDATES THE EXPEDITED REMOVAL OF FULLY PAID OR SETTLED DEBT 
              FROM CONSUMER REPORTS.

    Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681c(a)), as amended by section 101(a)(1), is further amended by 
adding at the end the following new paragraph:
            ``(13) Any other adverse item of information related to a 
        fully paid or settled debt that had been characterized as 
        delinquent, charged off, or in collection which, from the date 
        of payment or settlement, antedates the report by more than 45 
        calendar days.''.

SEC. 103. IMPOSES RESTRICTIONS ON THE APPEARANCE OF MEDICAL COLLECTIONS 
              ON CONSUMER REPORTS AND REQUIRES THE EXPEDITED REMOVAL OF 
              FULLY PAID OR SETTLED MEDICAL COLLECTIONS FROM CONSUMER 
              REPORTS.

    (a) Removal of Fully Paid or Settled Medical Debt From Consumer 
Reports.--Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681c(a)), as amended by section 102, is further amended by adding at 
the end the following new paragraph:
            ``(14) Any other adverse item of information related to a 
        fully paid or settled debt arising from the receipt of medical 
        services, products, or devices that had been characterized as 
        delinquent, charged off, or in collection which, from the date 
        of payment or settlement, antedates the report by more than 45 
        calendar days.''.
    (b) Establishing an Extended Time Period Before Certain Medical 
Debt Information May Be Reported.--Section 605(a) of such Act is 
further amended by adding at the end the following new paragraph:
            ``(15) Any information related to a debt arising from the 
        receipt of medical services, products, or devices, if the date 
        on which such debt was placed for collection, charged to profit 
        or loss, or subjected to any similar action antedates the 
        report by less than 365 calendar days.''.
    (c) Prohibition on Reporting Medically Necessary Procedures.--
Section 605(a) of such Act is further amended by adding at the end the 
following new paragraph:
            ``(16) Any information related to a debt arising from a 
        medically necessary procedure.''.
    (d) Technical Amendment.--Section 604(g)(1)(C) of the Fair Credit 
Reporting Act (15 U.S.C. 1681b(g)(1)(C)) is further amended by striking 
``devises'' and inserting ``devices''.

SEC. 104. PROVIDES CREDIT RESTORATION FOR VICTIMS OF PREDATORY MORTGAGE 
              LENDING AND SERVICING.

    (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. Credit restoration for victims of predatory mortgage 
              lending
    ``(a) In General.--A consumer reporting agency may not furnish any 
consumer report containing any adverse item of information relating to 
a covered residential mortgage loan (including the origination and 
servicing of such a loan, any loss mitigation activities related to 
such a loan, and any foreclosure, deed in lieu of foreclosure, or short 
sale related to such a loan), if the action or inaction to which the 
item of information relates--
            ``(1) resulted from an unfair, deceptive, or abusive act or 
        practice, or a fraudulent, discriminatory, or illegal activity 
        of a financial institution, as determined by the Bureau or a 
        court of competent jurisdiction; or
            ``(2) is related to an unfair, deceptive, or abusive act, 
        practice, or a fraudulent, discriminatory, or illegal activity 
        of a financial institution that is the subject of a settlement 
        agreement initiated on behalf of a consumer or consumers and 
        that is between the financial institution and an agency or 
        department of a local, State, or Federal Government, regardless 
        of whether such settlement includes an admission of wrongdoing.
    ``(b) Covered Residential Mortgage Loan Defined.--In this section, 
the term `covered residential mortgage loan' means any loan primarily 
for personal, family, or household use that is secured by a mortgage, 
deed of trust, or other equivalent consensual security interest on a 
dwelling (as defined in section 103(w) of the Truth in Lending Act), 
including a loan in which the proceeds will be used for--
            ``(1) a manufactured home (as defined in section 603 of the 
        Housing and Community Development Act of 1974 (42 U.S.C. 
        5402));
            ``(2) any installment sales contract, land contract, or 
        contract for deed on a residential property; or
            ``(3) a reverse mortgage transaction (as defined in section 
        103 of the Truth in Lending Act).''.
    (b) Table of Contents Amendment.--The table of contents of the Fair 
Credit Reporting Act is amended by inserting after the item relating to 
section 605B the following new item:

``605C. Credit restoration for victims of predatory mortgage 
                            lending.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect at the end of the 18-month period beginning on the date of the 
enactment of this Act.

SEC. 105. PROVIDES CREDIT RELIEF FOR PRIVATE EDUCATION LOANS BORROWERS 
              WHO WERE DEFRAUDED OR MISLEAD BY PROPRIETARY EDUCATION 
              INSTITUTION OR CAREER EDUCATION PROGRAMS.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.), as amended by section 104, is further amended by inserting after 
section 605C the following new section:
``Sec. 605D. Private education loan credit restoration for defrauded 
              student borrowers who attend certain proprietary 
              educational institution or career education programs
    ``(a) Process for Certification as a Qualifying Private Education 
Loan Borrower.--
            ``(1) In general.--A consumer may submit a request to the 
        Bureau, along with a defraudment claim, to be certified as a 
        qualifying private education loan borrower with respect to a 
        private education loan.
            ``(2) Certification.--The Bureau shall certify a consumer 
        described in paragraph (1) as a qualifying private education 
        loan borrower with respect to a private education loan if the 
        Bureau or a court of competent jurisdiction determines that the 
        consumer has a valid defraudment claim with respect to such 
        loan.
    ``(b) Removal of Adverse Information.--Upon receipt of a notice 
described in subsection (d)(5), a consumer reporting agency shall 
remove any adverse information relating to any private education loan 
with respect to which a consumer is a qualifying private education loan 
borrower from any consumer report within 45 calendar days of receipt of 
such notification.
    ``(c) Disclosure.--The Bureau shall disclose the results of a 
certification determination in writing to the consumer that provides a 
clear and concise explanation of the basis for the determination of 
whether such consumer is a qualifying private education loan borrower 
with respect to a private education loan and, as applicable, an 
explanation of the consumer's right to have adverse information 
relating to such loan removed from their consumer report by a consumer 
reporting agency.
    ``(d) Procedures.--The Bureau shall--
            ``(1) establish procedures for a consumer to submit a 
        request described in subsection (a);
            ``(2) establish procedures to efficiently review, accept, 
        and process such a request;
            ``(3) develop ongoing outreach initiatives and education 
        programs to inform consumers of the circumstances under which 
        such consumer may be eligible to be certified as a qualifying 
        private education loan borrower with respect to a private 
        education loan;
            ``(4) establish procedures, including the manner, form, and 
        content of the notice informing a private educational loan 
        holder of the prohibition on reporting any adverse information 
        relating to a private education loan with respect to which a 
        consumer is a qualifying private education loan borrower; and
            ``(5) establish procedures, including the manner, form, and 
        content of the notice informing a consumer reporting agency of 
        the obligation to remove any adverse information as described 
        in subsection (c).
    ``(e) Standardized Reporting Codes.--A consumer reporting agency 
shall develop standardized reporting codes for use by private education 
loan holders to identify and report a qualifying private education loan 
borrower's status of a request to remove any adverse information 
relating to any private education loan with respect to which such 
consumer is a qualifying private education loan borrower. A consumer 
report in which a person furnishes such codes shall be deemed to comply 
with the requirements for accuracy and completeness required under 
sections 623(a)(1) and 630. Such codes shall not appear on any report 
provided to a third party, and shall be removed from the consumer's 
credit report upon the successful restoration of the consumer's credit 
under this section.
    ``(f) Defraudment Claim Defined.--For purposes of this section, the 
term `defraudment claim' means a claim made with respect to a consumer 
who is a borrower of a private education loan with respect to a 
proprietary educational institution or career education program in 
which the consumer alleges that--
            ``(1) the proprietary educational institution or career 
        education program--
                    ``(A) engaged in an unfair, deceptive, or abusive 
                act or practice, or a fraudulent, discriminatory, or 
                illegal activity--
                            ``(i) as defined by State law of the State 
                        in which the proprietary educational 
                        institution or career education program is 
                        headquartered or maintains or maintained 
                        significant operations; or
                            ``(ii) under Federal law;
                    ``(B) is the subject of an enforcement order, a 
                settlement agreement, a memorandum of understanding, a 
                suspension of tuition assistance, or any other action 
                relating to an unfair, deceptive, or abusive act or 
                practice that is between the proprietary educational 
                institution or career education program and an agency 
                or department of a local, State, or Federal Government; 
                or
                    ``(C) misrepresented facts to students or 
                accrediting agencies or associations about graduation 
                or gainful employment rates in recognized occupations 
                or failed to provide the coursework necessary for 
                students to successfully obtain a professional 
                certification or degree from the proprietary 
                educational institution or career education program; or
            ``(2) the consumer has submitted a valid defense to 
        repayment claim with respect to such loan, as determined by the 
        Secretary of Education.''.
    (b) Table of Contents Amendment.--The table of contents of the Fair 
Credit Reporting Act is amended by inserting after the item relating to 
section 605C (as added by section 104) the following new item:

``605D. Private education loan credit restoration for defrauded student 
                            borrowers who attend certain proprietary 
                            educational institution or career education 
                            programs.''.

SEC. 106. ESTABLISHES RIGHT FOR VICTIMS OF FINANCIAL ABUSE TO HAVE 
              ADVERSE INFORMATION ASSOCIATED WITH AN ABUSER'S 
              FRAUDULENT ACTIVITY REMOVED FROM THEIR CONSUMER REPORTS.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.), as amended by section 105, is further amended by inserting after 
section 605D the following new section:
``Sec. 605E. Financial abuse prevention
    ``For a consumer who is the victim of intentionally abusive or 
harmful financial behavior, including severe forms of trafficking in 
persons or sex trafficking, as such terms are defined in the 
Trafficking Victims Protection Act of 2000, as determined by a court of 
competent jurisdiction including a family court, juvenile court, or 
other court with personal jurisdiction, that was conducted by a spouse, 
family or household member, caregiver, or person with whom such 
consumer had a dating relationship in a manner which resulted in the 
inclusion of an adverse item of information on the consumer report of 
the consumer, and the consumer did not participate in or consent to 
such behavior, the consumer may apply to a court of competent 
jurisdiction, including a family court, juvenile court, or other court 
with personal jurisdiction, for an order to require the removal of such 
adverse information from the consumer's file maintained by any consumer 
reporting agency.''.
    (b) Table of Contents Amendment.--The table of contents of the Fair 
Credit Reporting Act is amended by inserting after the item relating to 
section 605D the following new item:

``605E. Financial abuse prevention.''.

SEC. 107. PROHIBITS TREATMENT OF CREDIT RESTORATION OR REHABILITATION 
              AS ADVERSE INFORMATION.

    The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended--
            (1) by adding at the end the following new section:
``Sec. 630. Prohibition of certain factors related to Federal credit 
              restoration or rehabilitation
    ``(a) Restriction on Credit Scoring Models.--A credit scoring model 
may not--
            ``(1) take into consideration, in a manner adverse to a 
        consumer's credit score or educational credit score, any 
        information in a consumer report concerning the consumer's 
        participation in credit restoration or rehabilitation under 
        section 605C, 605D, or 605E; or
            ``(2) treat negatively, in a manner adverse to a consumer's 
        credit score or educational credit score, the absence of 
        payment history data for an existing account, whether the 
        account is open or closed, where the absence of such 
        information is the result of a consumer's participation in 
        credit restoration or rehabilitation under section 605C, 605D, 
        or 605E.
    ``(b) Restriction on Persons Obtaining Consumer Reports.--A person 
who obtains a consumer report may not--
            ``(1) take into consideration, in a manner adverse to a 
        consumer, any information in a consumer report concerning the 
        consumer's participation in credit restoration or 
        rehabilitation under section 605C, 605D, or 605E; or
            ``(2) treat negatively the absence of payment history data 
        for an existing account, whether the account is open or closed, 
        where the absence of such information is the result of a 
        consumer's participation in credit restoration or 
        rehabilitation under section 605C, 605D, or 605E.
    ``(c) Accuracy and Completeness.--If a person who furnishes 
information to a consumer reporting agency requests the removal of 
information from a consumer report or a consumer reporting agency 
removes information from a consumer report in compliance with the 
requirements under section 605C, 605D, or 605E, or such information was 
removed pursuant at section 605(a)(11), such report shall be deemed to 
satisfy the requirements for accuracy and completeness with respect to 
such information.
    ``(d) Prohibition Related to Adverse Actions and Risk-Based Pricing 
Decisions.--No person shall use information related to a consumer's 
participation in credit restoration or rehabilitation under section 
605C, 605D, or 605E in connection with any determination of--
            ``(1) the consumer's eligibility or continued eligibility 
        for an extension of credit;
            ``(2) the terms and conditions offered to a consumer 
        regarding an extension of credit; or
            ``(3) an adverse action made for employment purposes.''; 
        and
            (2) in the table of contents for such Act, by adding at the 
        end the following new item:

``630. Prohibition of certain factors related to Federal credit 
                            restoration or rehabilitation.''.

  TITLE II--EXPANDING ACCESS TO TOOLS TO PROTECT VULNERABLE CONSUMERS 
  FROM IDENTITY THEFT, FRAUD, OR A RELATED CRIME, AND PROTECT VICTIMS 
                           FROM FURTHER HARM

SEC. 201. IDENTITY THEFT REPORT DEFINITION.

    Paragraph (4) of section 603(q) of the Fair Credit Reporting Act 
(15 U.S.C. 1681a(q)(4)) is amended to read as follows:
            ``(4) Identity theft report.--The term `identity theft 
        report' has the meaning given that term by rule of the Bureau, 
        and means, at a minimum, a report--
                    ``(A) that is a standardized affidavit that alleges 
                that a consumer has been a victim of identity theft, 
                fraud, or a related crime, or has been harmed by the 
                unauthorized disclosure of the consumer's financial or 
                personally identifiable information, that was developed 
                and made available by the Bureau; or
                    ``(B)(i) that alleges an identity theft, fraud, or 
                a related crime, or alleges harm from the unauthorized 
                disclosure of the consumer's financial or personally 
                identifiable information;
                    ``(ii) that is a copy of an official, valid report 
                filed by a consumer with an appropriate Federal, State, 
                or local law enforcement agency, including the United 
                States Postal Inspection Service, or such other 
                government agency deemed appropriate by the Bureau; and
                    ``(iii) the filing of which subjects the person 
                filing the report to criminal penalties relating to the 
                filing of false information if, in fact, the 
                information in the report is false.''.

SEC. 202. AMENDMENT TO PROTECTION FOR FILES AND CREDIT RECORDS OF 
              PROTECTED CONSUMERS.

    (a) Amendment to Definition of ``File''.--Section 603(g) of the 
Fair Credit Reporting Act (15 U.S.C. 1681a(g)) is amended by inserting 
``, except that such term excludes a record created pursuant to section 
605A(j)'' after ``stored''.
    (b) Amendment to Protection for Files and Credit Records.--Section 
605A(j) of the Fair Credit Reporting Act (15 U.S.C. 1681c-1(j)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)(ii), by striking ``an 
                incapacitated person or a protected person'' and 
                inserting ``a person''; and
                    (B) by amending subparagraph (E) to read as 
                follows:
                    ``(E) The term `security freeze'--
                            ``(i) has the meaning given in subsection 
                        (i)(1)(C); and
                            ``(ii) with respect to a protected consumer 
                        for whom the consumer reporting agency does not 
                        have a file, means a record that is subject to 
                        a security freeze that a consumer reporting 
                        agency is prohibited from disclosing to any 
                        person requesting the consumer report for the 
                        purpose of opening a new account involving the 
                        extension of credit.''; and
            (2) in paragraph (4)(D), by striking ``a protected consumer 
        or a protected consumer's representative under subparagraph 
        (A)(i)'' and inserting ``a protected consumer described under 
        subparagraph (A)(ii) or a protected consumer's 
        representative''.

SEC. 203. ENHANCES FRAUD ALERT PROTECTIONS.

    Section 605A of the Fair Credit Reporting Act (15 U.S.C. 1681c-1) 
is amended--
            (1) in subsection (a)--
                    (A) in the subsection heading, by striking ``One-
                Call'' and inserting ``One-Year'';
                    (B) in paragraph (1)--
                            (i) in the paragraph heading, by striking 
                        ``Initial alerts'' and inserting ``In 
                        general'';
                            (ii) by inserting ``or harmed by the 
                        unauthorized disclosure of the consumer's 
                        financial or personally identifiable 
                        information,'' after ``identity theft,'';
                            (iii) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (iv) in subparagraph (B)--
                                    (I) by inserting ``1-year'' before 
                                ``fraud alert''; and
                                    (II) by striking the period at the 
                                end and inserting ``; and''; and
                            (v) by adding at the end the following new 
                        subparagraph:
                    ``(C) upon the expiration of the 1-year period 
                described in subparagraph (A) or a subsequent 1-year 
                period, and in response to a direct request by the 
                consumer or such representative, continue the fraud 
                alert for a period of 1 additional year if the 
                information asserted in this paragraph remains 
                applicable.''; and
                    (C) in paragraph (2)--
                            (i) in the paragraph heading, by inserting 
                        ``and credit or educational credit scores'' 
                        after ``reports'';
                            (ii) by inserting ``1-year'' before ``fraud 
                        alert'';
                            (iii) in subparagraph (A), by inserting 
                        ``and credit score or educational credit 
                        score'' after ``file''; and
                            (iv) in subparagraph (B), by striking ``any 
                        request described in subparagraph (A)'' and 
                        inserting ``the consumer reporting agency 
                        includes the 1-year fraud alert in the file of 
                        a consumer'';
            (2) in subsection (b)--
                    (A) in the subsection heading, by striking 
                ``Extended'' and inserting ``Seven-Year'';
                    (B) in paragraph (1)--
                            (i) in subparagraph (B)--
                                    (I) by striking ``5-year period 
                                beginning on the date of such request'' 
                                and inserting ``such 7-year period''; 
                                and
                                    (II) by striking ``and'' at the 
                                end;
                            (ii) in subparagraph (C)--
                                    (I) by striking ``extended'' and 
                                inserting ``7-year''; and
                                    (II) by striking the period at the 
                                end and inserting ``; and''; and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(D) upon the expiration of such 7-year period or 
                a subsequent 7-year period, and in response to a direct 
                request by the consumer or such representative, 
                continue the fraud alert for a period of 7 additional 
                years if the consumer or such representative submits an 
                updated identity theft report.''; and
                    (C) in paragraph (2)--
                            (i) in the paragraph heading, by inserting 
                        ``and credit or educational credit scores'' 
                        after ``reports''; and
                            (ii) by amending subparagraph (A) to read 
                        as follows:
                    ``(A) disclose to the consumer that the consumer 
                may request a free copy of the file and credit score or 
                educational credit score of the consumer pursuant to 
                section 612(d) during each 12-month period beginning on 
                the date on which the 7-year fraud alert was included 
                in the file and ending on the date of the last day that 
                the 7-year fraud alert applies to the consumer's file; 
                and'';
            (3) in subsection (c)--
                    (A) in paragraph (1), by inserting ``or educational 
                credit score'' after ``credit score'';
                    (B) by redesignating paragraphs (1), (2), and (3), 
                as subparagraphs (A), (B), and (C), respectively (and 
                conforming the margins accordingly);
                    (C) by striking ``Upon the direct request'' and 
                inserting:
            ``(1) In general.--Upon the direct request''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(2) Access to free reports and credit or educational 
        credit scores.--If a consumer reporting agency includes an 
        active duty alert in the file of an active duty military 
        consumer, the consumer reporting agency shall--
                    ``(A) disclose to the active duty military consumer 
                that the active duty military consumer may request a 
                free copy of the file and credit score or educational 
                credit score of the active duty military consumer 
                pursuant to section 612(d), during each 12-month period 
                beginning on the date that the activity duty military 
                alert is requested and ending on the date of the last 
                day the active duty alert applies to the file of the 
                active duty military consumer; and
                    ``(B) provide to the active duty military consumer 
                all disclosures required to be made under section 609, 
                without charge to the consumer, not later than 3 
                business days after any request described in 
                subparagraph (A).'';
            (4) by amending subsection (d) to read as follows:
    ``(d) Procedures.--Each consumer reporting agency described in 
section 603(p) shall include on the webpage required under subsection 
(i) policies and procedures to comply with this section, including 
policies and procedures--
            ``(1) that inform consumers of the availability of 1-year 
        fraud alerts, 7-year fraud alerts, active duty alerts, and 
        security freezes (as applicable);
            ``(2) that allow consumers to request 1-year fraud alerts, 
        7-year fraud alerts, and active duty alerts (as applicable) and 
        to place, temporarily lift, or fully remove a security freeze 
        in a simple and easy manner; and
            ``(3) for asserting in good faith a suspicion that the 
        consumer has been or is about to become a victim of identity 
        theft, fraud, or a related crime, or harmed by the unauthorized 
        disclosure of the consumer's financial or personally 
        identifiable information, for a consumer seeking a 1-year fraud 
        alert or security freeze.'';
            (5) in subsection (e), by inserting ``1-year or 7-year'' 
        before ``fraud alert'';
            (6) in subsection (f), by striking ``or active duty alert'' 
        and inserting ``active duty alert, or security freeze (as 
        applicable)'';
            (7) in subsection (g)--
                    (A) by inserting ``or has been harmed by the 
                unauthorized disclosure of the consumer's financial or 
                personally identifiable information, or to inform such 
                agency of the consumer's participation in credit 
                restoration or rehabilitation under section 605C, 605D, 
                or 605E,'' after ``identity theft,''; and
                    (B) by inserting ``or security freezes'' after 
                ``request alerts'';
            (8) in subsection (h)--
                    (A) in paragraph (1)--
                            (i) in the paragraph heading, by striking 
                        ``initial'' and inserting ``1-year''; and
                            (ii) by striking ``initial'' and inserting 
                        ``1-year'' each place such term appears; and
                    (B) in paragraph (2)--
                            (i) in the paragraph heading, by striking 
                        ``extended'' and inserting ``7-year''; and
                            (ii) by striking ``extended'' and inserting 
                        ``7-year'' each place such term appears; and
            (9) in subsection (i)(4)--
                    (A) by striking subparagraphs (E) and (I); and
                    (B) by redesignating subparagraphs (F), (G), (H), 
                and (J) as subparagraphs (E), (F), (G), and (H), 
                respectively.

SEC. 204. AMENDMENT TO SECURITY FREEZES FOR CONSUMER REPORTS.

    (a) In General.--Section 605A(i) of the Fair Credit Reporting Act 
(15 U.S.C. 1681c-1(i)) is amended--
            (1) by amending the subsection heading to read as follows: 
        ``Security Freezes for Consumer Reports'';
            (2) in paragraph (3)(E), by striking ``Upon receiving'' and 
        all that follows through ``subparagraph (C),'' and inserting 
        ``Upon receiving a direct request from a consumer for a 
        temporary removal of a security freeze, a consumer reporting 
        agency shall''; and
            (3) by adding at the end the following:
            ``(7) Relation to state law.--This subsection does not 
        modify or supersede the laws of any State relating to security 
        freezes or other similar actions, except to the extent those 
        laws are inconsistent with any provision of this title, and 
        then only to the extent of the inconsistency. For purposes of 
        this subsection, a term or provision of a State law is not 
        inconsistent with the provisions of this subsection if the term 
        or provision affords greater protection to the consumer than 
        the protection provided under this subsection as determined by 
        the Bureau.''.
    (b) Amendment to Webpage Requirements.--Section 605A(i)(6)(A) of 
the Fair Credit Reporting Act (15 U.S.C. 1681c-1(i)(6)(A)) is amended--
            (1) in clause (ii), by striking ``initial fraud alert'' and 
        inserting ``1-year fraud alert'';
            (2) in clause (iii), by striking ``extended fraud alert'' 
        and inserting ``7-year fraud alert''; and
            (3) in clause (iv), by striking ``fraud''.
    (c) Amendment to Exceptions for Certain Persons.--Section 
605A(i)(4)(A) of the Consumer Credit Protection Act (15 U.S.C. 1681c-
1(i)(4)(A)) is amended to read as follows:
                    ``(A) A person, or the person's subsidiary, 
                affiliate, agent, subcontractor, or assignee with whom 
                the consumer has, or prior to assignment had, an 
                authorized account, contract, or debtor-creditor 
                relationship for the purposes of reviewing the active 
                account or collecting the financial obligation owed on 
                the account, contract, or debt.''.
    (d) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 205. CLARIFICATION OF INFORMATION TO BE INCLUDED WITH AGENCY 
              DISCLOSURES.

    Section 609(c)(2) of such Act (15 U.S.C. 1681g(c)(2)) is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``consumer reporting agency 
                described in section 603(p)'' and inserting ``consumer 
                reporting agency described in subsection (p) or (x) of 
                section 603'';
                    (B) by striking ``the agency'' and inserting ``such 
                an agency''; and
                    (C) by inserting ``and an Internet website 
                address'' after ``hours''; and
            (2) in subparagraph (E), by striking ``outdated under 
        section 605 or'' and inserting ``outdated, required to be 
        removed, or''.

SEC. 206. PROVIDES ACCESS TO FRAUD RECORDS FOR VICTIMS.

    Section 609(e) of the Fair Credit Reporting Act (15 U.S.C. 
1681g(e)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``resulting from identity theft'';
                    (B) by striking ``claim of identity theft'' and 
                inserting ``claim of fraudulent activity''; and
                    (C) by striking ``any transaction alleged to be a 
                result of identity theft'' and inserting ``any 
                fraudulent transaction'';
            (2) in paragraph (2)(B)--
                    (A) by striking ``identity theft, at the election 
                of the business entity'' and inserting ``fraudulent 
                activity'';
                    (B) by amending clause (i) to read as follows:
                            ``(i) a copy of an identity theft report; 
                        or''; and
                    (C) by amending clause (ii) to read as follows:
                            ``(ii) an affidavit of fact that is 
                        acceptable to the business entity for that 
                        purpose.'';
            (3) in paragraph (3)(C), by striking ``identity theft'' and 
        inserting ``fraudulent activity'';
            (4) by striking paragraph (8) and redesignating paragraphs 
        (9) through (13) as paragraphs (8) through (12), respectively; 
        and
            (5) in paragraph (10) (as so redesignated), by striking 
        ``or a similar crime'' and inserting ``, fraud, or a related 
        crime''.

SEC. 207. REQUIRED BUREAU TO SET PROCEDURES FOR REPORTING IDENTITY 
              THEFT, FRAUD, AND OTHER RELATED CRIME.

    Section 621(f)(2) of the Fair Credit Reporting Act (15 U.S.C. 
1681s(f)(2)) is amended--
            (1) in the paragraph heading, by striking ``Model form'' 
        and inserting ``Standardized affidavit'';
            (2) by striking ``The Commission'' and inserting ``The 
        Bureau'';
            (3) by striking ``model form'' and inserting ``standardized 
        affidavit'';
            (4) by inserting after ``identity theft'' the following: 
        ``, fraud, or a related crime, or otherwise are harmed by the 
        unauthorized disclosure of the consumer's financial or 
        personally identifiable information,''; and
            (5) by striking ``fraud.'' and inserting ``identity theft, 
        fraud, or other related crime. Such standardized affidavit and 
        procedures shall not include a requirement that a consumer 
        obtain a police report.''.

SEC. 208. ESTABLISHES THE RIGHT TO FREE CREDIT MONITORING AND IDENTITY 
              THEFT PROTECTION SERVICES FOR CERTAIN CONSUMERS.

    (a) Enforcement of Credit Monitoring for Servicemembers.--
            (1) In general.--Subsection (k) of section 605A (15 U.S.C. 
        1681c-1(a)) is amended by striking paragraph (4).
            (2) Effective date.--This subsection and the amendments 
        made by this subsection shall take effect on the date of the 
        enactment of this Act.
    (b) Free Credit Monitoring and Identity Theft Protection Services 
for Certain Consumers.--Subsection (k) of section 605A (15 U.S.C. 
1681c-1), is amended to read as follows:
    ``(k) Credit Monitoring and Identity Theft Protection Services.--
            ``(1) In general.--Upon the direct request of a consumer, a 
        consumer reporting agency described in section 603(p) that 
        maintains a file on the consumer and has received appropriate 
        proof of the identity of the requester (as described in section 
        1022.123 of title 12, Code of Federal Regulations) shall 
        provide the consumer with credit monitoring and identity theft 
        protection services not later than 1 business day after 
        receiving such request sent by postal mail, toll-free 
        telephone, or secure electronic means as established by the 
        agency.
            ``(2) Fees.--
                    ``(A) Classes of consumers.--The Bureau may 
                establish classes of consumers eligible to receive 
                credit monitoring and identity theft protection 
                services free of charge.
                    ``(B) No fee.--A consumer reporting agency 
                described in section 603(p) may not charge a consumer a 
                fee to receive credit monitoring and identity theft 
                protection services if the consumer or a representative 
                of the consumer--
                            ``(i) asserts in good faith a suspicion 
                        that the consumer has been or is about to 
                        become a victim of identity theft, fraud, or a 
                        related crime, or harmed by the unauthorized 
                        disclosure of the consumer's financial or 
                        personally identifiable information;
                            ``(ii) is unemployed and intends to apply 
                        for employment in the 60-day period beginning 
                        on the date on which the request is made;
                            ``(iii) is a recipient of public welfare 
                        assistance;
                            ``(iv) is an active duty military consumer 
                        or a member of the National Guard (as defined 
                        in section 101(c) of title 10, United States 
                        Code);
                            ``(v) is 65 years of age or older; or
                            ``(vi) is a member of a class established 
                        by the Bureau under subparagraph (A).
            ``(3) Bureau rulemaking.--The Bureau shall issue 
        regulations--
                    ``(A) to define the scope of credit monitoring and 
                identity theft protection services required under this 
                subsection; and
                    ``(B) to set a fair and reasonable fee that a 
                consumer reporting agency may charge a consumer (other 
                than a consumer described under paragraph (2)(B)) for 
                such credit monitoring and identity theft protection 
                services.
            ``(4) Relation to state law.--This subsection does not 
        modify or supersede the laws of any State relating to credit 
        monitoring and identity theft protection services or other 
        similar actions, except to the extent those laws are 
        inconsistent with any provision of this title, and then only to 
        the extent of the inconsistency. For purposes of this 
        subsection, a term or provision of a State law is not 
        inconsistent with the provisions of this subsection if the term 
        or provision affords greater protection to the consumer than 
        the protection provided under this subsection as determined by 
        the Bureau.''.

SEC. 209. ENSURES REMOVAL OF INQUIRIES RESULTING FROM IDENTITY THEFT, 
              FRAUD, OR OTHER RELATED CRIME FROM CONSUMER REPORTS.

    Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681c(a)), as amended by section 103, is further amended by adding at 
the end the following:
            ``(17) Information about inquiries made for a credit report 
        based on requests that the consumer reporting agency verifies 
        were initiated as the result of identity theft, fraud, or other 
        related crime.''.

                        TITLE III--MISCELLANEOUS

SEC. 301. DEFINITIONS.

    Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is 
further amended by adding at the end the following:
    ``(bb) Definitions Related to Days.--
            ``(1) Calendar day; day.--The term `calendar day' or `day' 
        means a calendar day, excluding any federally recognized 
        holiday.
            ``(2) Business day.--The term `business day' means a day 
        between and including Monday to Friday, and excluding any 
        federally recognized holiday.''.

SEC. 302. TECHNICAL CORRECTION RELATED TO RISK-BASED PRICING NOTICES.

    Section 615(h)(8) of the Fair Credit Reporting Act (15 U.S.C. 
1681m) is amended--
            (1) in subparagraph (A), by striking ``this section'' and 
        inserting ``this subsection''; and
            (2) in subparagraph (B), by striking ``This section'' and 
        inserting ``This subsection''.

SEC. 303. FCRA FINDINGS AND PURPOSE; VOIDS CERTAIN CONTRACTS NOT IN THE 
              PUBLIC INTEREST.

    (a) FCRA Findings and Purpose.--Section 602 of the Fair Credit 
Reporting Act (15 U.S.C. 1681(a)) is amended--
            (1) in subsection (a)--
                    (A) by amending paragraph (1) to read as follows:
    ``(1) Many financial and non-financial decisions affecting 
consumers' lives depend upon fair, complete, and accurate credit 
reporting. Inaccurate and incomplete credit reports directly impair the 
efficiency of the financial system and undermine the integrity of using 
credit reports in other circumstances, and unfair credit reporting and 
credit scoring methods undermine the public confidence which is 
essential to the continued functioning of the financial services system 
and the provision of many other consumer products and services.''; and
                    (B) in paragraph (4), by inserting after 
                ``agencies'' the following: ``, furnishers, and credit 
                scoring developers''; and
            (2) in subsection (b)--
                    (A) by striking ``It is the purpose of this title 
                to require'' and inserting the following: ``The purpose 
                of this title is the following:
            ``(1) To require''; and
                    (B) by adding at the end the following:
            ``(2) To prohibit any practices and procedures with respect 
        to credit reports and credit scores that are not in the public 
        interest.''.
    (b) Voiding of Certain Contracts Not in the Public Interest.--
            The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as 
        amended by section 107, is further amended--
            (1) by adding at the end the following new section:
``Sec. 631. Voiding of certain contracts not in the public interest
    ``(a) In General.--Any provision contained in a contract that 
requires a person to not follow a provision of this title, that is 
against the public interest, or that otherwise circumvents the purposes 
of this title shall be null and void.
    ``(b) Rule of Construction.--Nothing in subsection (a) shall be 
construed as affecting other provisions of a contract that are not 
described under subsection (a).''; and
            (2) in the table of contents for such Act, by adding at the 
        end the following new item:

``631. Voiding of certain contracts not in the public interest.''.
                                 <all>