Free Credit Scores for Consumers Act of 2021
Bill: H.R.4078 | Sponsor: Rep. Beatty, Joyce (D-OH)
Policy area: Finance and Financial Sector

Summary:
Free Credit Scores for Consumers Act of 2021
This bill requires credit reporting agencies to provide free credit scores to consumers with their free annual consumer reports. The bill also provides for automatic free credit scores and consumer reports in specified circumstances. Credit reporting agencies must provide consumers with additional information regarding the calculation of their credit score.
Specified lenders must give consumers free copies of any consumer reports and credit scores they used for underwriting before consumers sign the respective loan agreements.

To establish requirements relating to credit scores and educational 
                 credit scores, 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 ``Free Credit Scores for Consumers Act 
of 2021''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) While nationwide consumer reporting agencies (``CRAs'') 
        are required by law to supply consumers with a free copy of 
        their credit report annually, they can charge consumers to 
        obtain a credit score disclosure.
            (2) A July 2011 report by the Consumer Financial Protection 
        Bureau (``Consumer Bureau'') titled ``The Impact of Differences 
        between Consumer- and Creditor-Purchased Credit Scores'' found 
        that the credit scores made available to and purchased by 
        consumers from CRAs are unlikely to be the same credit scores 
        used by creditors and lenders to evaluate consumers' 
        creditworthiness.
            (3) That report found that the scarcity of public 
        educational tools to inform consumers of the differences among 
        credit scores, the large combined market share and brand 
        recognition of FICO credit scores, and the marketing practices 
        of some credit score sellers may perpetuate consumers' 
        confusion about credit scores. As a result, some consumers may 
        be purchasing an educational credit score or subscribing to a 
        credit monitoring service sold by a CRA, without realizing the 
        limitations and usefulness of these products and services.
            (4) Similarly, a September 2012 Consumer Bureau report 
        titled ``Analysis of Differences between Consumer- and 
        Creditor-Purchased Credit Scores'' found that consumers do not 
        know before they purchase a credit score from a CRA whether 
        this credit score will closely track or vary significantly from 
        the credit score sold to creditors or lenders. Given the lack 
        of transparency about the usefulness of credit scores that are 
        marketed for purchase by consumers from CRAs and the resulting 
        consumer confusion, the Consumer Bureau recommended that 
        companies selling scores to consumers clearly inform consumers 
        that the scores marketed to consumers for purchase by CRAs can 
        vary, sometimes substantially, from the scores that are 
        actually sold to and used by creditors and lenders.
            (5) A February 2011 study by Consumer Federation of America 
        and VantageScore also found that half of the consumers surveyed 
        did not know that a credit score is designed to indicate the 
        risk of not repaying a credit obligation. Consumers also did 
        not know who makes credit scores available, what numerical 
        range constitutes excellent credit standing, or the financial 
        implications of having a low credit score.
            (6) Many consumers do not realize that they have more than 
        just ``one'' credit score. Because the submission of credit 
        information to CRAs is voluntary and not all furnishers submit 
        information to every CRA, the information contained in a report 
        also varies among CRAs. As a result, the credit score generated 
        by each CRA is also likely to vary, resulting in potentially 
        different credit decisions based on an evaluation of different 
        credit reports obtained from different CRAs.
            (7) A February 2015 Consumer Bureau report titled 
        ``Consumer Voices on Credit Reports and Scores'' found that 
        consumers had questions about what actions to take to improve 
        their scores once they had seen them, suggesting that 
        additional disclosures and educational content would be helpful 
        to consumers. The Consumer Bureau found that consumers were 
        confused by conflicting advice on how to improve their scores.
            (8) That report also noted that consumers found the process 
        for obtaining consumer reports and credit scores confusing. 
        Consumers also were uncertain about whether, and under what 
        circumstances, they could obtain a consumer report for free.

SEC. 3. DEFINITIONS.

    (a) In General.--Section 603 of the Fair Credit Reporting Act (15 
U.S.C. 1681a) is amended by adding at the end the following new 
subsection:
    ``(bb) Credit Score and Educational Credit Score Definitions.--
            ``(1) Credit score.--The term `credit score' means a 
        numerical value or a categorization derived from a statistical 
        tool or modeling system used by a person who makes or arranges 
        a loan or extends credit to predict the likelihood of certain 
        credit behaviors, including default, as determined by the 
        Bureau.
            ``(2) Educational credit score.--The term `educational 
        credit score' means a numerical value or categorization derived 
        from a statistical tool or modeling system based upon 
        information from a consumer report that assists consumers in 
        understanding how a lender or creditor may view the consumer's 
        creditworthiness in deciding whether to make a loan or extend 
        credit to that consumer.
            ``(3) Key factors.--The term `key factors' means relevant 
        elements or reasons affecting the credit score for the 
        particular individual, listed in the order of importance based 
        on the effect of each element or reason on the credit score or 
        educational credit score.
            ``(4) Credit scoring model.--The term `credit scoring 
        model' means a scoring algorithm, formula, model, program, or 
        mechanism used to generate a credit score or an educational 
        credit score.''.
    (b) Conforming Amendments.--The Fair Credit Reporting Act (15 
U.S.C. 1681 et seq.) is amended--
            (1) in section 605(d)(2), by striking ``(as defined in 
        section 609(f)(2)(B))''; and
            (2) in section 615--
                    (A) by striking ``as defined in section 
                609(f)(2)(A)'' each place that term appears; and
                    (B) by striking ``set forth in subparagraphs (B) 
                through (E) of section 609(f)(1)'' and inserting ``with 
                respect to a credit score described in section 
                609(f)(2), if available'' each place that term appears.

SEC. 4. EXPANDS EXPLANATORY INFORMATION GIVEN TO CONSUMERS ABOUT HOW 
              SCORES ARE CALCULATED.

    Section 609(f) of the Fair Credit Reporting Act (15 U.S.C. 
1681g(f)) is amended to read as follows:
    ``(f) Disclosure of Credit Score and Educational Credit Score by 
Consumer Reporting Agencies.--
            ``(1) In general.--Upon the request of a consumer for a 
        credit score or educational credit score, a consumer reporting 
        agency shall supply to the consumer a statement--
                    ``(A) containing--
                            ``(i) a current credit score at the time of 
                        the request generated using a commonly used 
                        credit scoring model to generate credit scores, 
                        subject to regulations of the Bureau;
                            ``(ii) an educational credit score at the 
                        time of the request, if it is not practicable 
                        to generate such a credit score, as determined 
                        by the Bureau; or
                            ``(iii) an explanation that the consumer's 
                        file does not have sufficient information from 
                        which to generate such a credit score or 
                        educational credit score; and
                    ``(B) with respect to each previous credit score in 
                the file of the consumer--
                            ``(i) the date on which the credit score 
                        was generated;
                            ``(ii) the name of any entity that the 
                        credit score was provided to; and
                            ``(iii) the credit score itself.
            ``(2) Requirements.--A statement provided under clause (i) 
        or (ii) of paragraph (1)(A) shall include--
                    ``(A) a minimum of 4 key factors, if available, 
                that adversely affected the credit score or educational 
                credit score, except that if one of the key factors 
                consists of the number of enquiries made with respect 
                to a consumer report, that factor shall be provided to 
                the consumer in addition to the factors required by 
                this subparagraph;
                    ``(B) to the extent possible, specific actions a 
                consumer could take with respect to each key factor 
                listed in subparagraph (A) to improve the consumer's 
                credit score or educational credit score;
                    ``(C) a minimum of 4 key factors, if available, 
                that positively affected the credit score or 
                educational credit score;
                    ``(D) the range of possible credit scores or 
                educational credit scores under the credit scoring 
                model used;
                    ``(E) the distribution of credit scores or 
                educational credit scores among consumers who are 
                scored under the same credit scoring model by the 
                consumer reporting agency, and using the same scale as 
                that of the score that is provided to a creditor or 
                consumers--
                            ``(i) in the form of a bar graph containing 
                        a minimum of 6 bars that illustrates the 
                        percentage of consumers with credit scores or 
                        educational credit scores within the range of 
                        scores represented by each bar; or
                            ``(ii) by another clear and readily 
                        understandable graphical depiction, statement, 
                        or illustration comparing the consumer's credit 
                        score or educational credit score to the scores 
                        of other consumers, as determined by the 
                        Bureau;
                    ``(F) the date on which the credit score or 
                educational credit score was created; and
                    ``(G) the name of the person that developed the 
                credit scoring model on which the credit score or 
                educational credit score was based.
            ``(3) Applicability to certain uses.--This subsection shall 
        not be construed so as to compel a consumer reporting agency 
        to--
                    ``(A) develop or disclose a credit score if the 
                agency does not distribute credit scores used by a 
                person who makes or arranges a loan or extends credit 
                to predict the likelihood of certain credit behaviors; 
                or
                    ``(B) develop or disclose an educational credit 
                score if the agency does not develop educational credit 
                scores that assist in understanding the general credit 
                behavior of a consumer and predicting the future credit 
                behavior of the consumer.
            ``(4) Maintenance of credit scores.--
                    ``(A) In general.--All consumer reporting agencies 
                shall maintain in the consumer's file credit scores 
                relating to the consumer for a period of 2 years from 
                the date on which such information is generated.
                    ``(B) Disclosure only to consumers.--A past credit 
                score maintained in a consumer's file pursuant to 
                subparagraph (A) may only be provided to the consumer 
                to which the credit score relates and may not be 
                included in a consumer report or used as a factor in 
                generating a credit score or educational credit score.
                    ``(C) Removal of past credit scores.--A past credit 
                score maintained in a consumer's file pursuant to 
                subparagraph (A) shall be removed from the consumer's 
                file after the end of the 2-year period described under 
                subparagraph (A).''.

SEC. 5. REQUIRES CONSUMER REPORTING AGENCIES TO DISCLOSE PROMINENTLY 
              THE DIFFERENCES BETWEEN AND LIMITATIONS OF CREDIT SCORES 
              AND EDUCATIONAL CREDIT SCORES REQUIRED PRIOR TO A 
              CONSUMER OBTAINING SUCH SCORES.

    Section 609(f) of the Fair Credit Reporting Act (15 U.S.C. 
1681g(f)), as amended by section 3, is further amended by adding at the 
end the following new paragraphs:
            ``(5) Website disclaimer.--A consumer reporting agency that 
        generates or provides credit scores or educational credit 
        scores shall clearly and conspicuously display on the home page 
        of the agency's Internet website, and as part of any 
        application, solicitation, or marketing material or media 
        providing information related to a credit score or educational 
        credit score, the following notice, in boldface type of 18-
        point font or larger and in a text box with boldface outer 
        borders:

```CREDIT SCORE DISCLAIMER.

    ```There is no ``one'' credit score. There are many scoring 
formulas derived from a wide variety of models available to a consumer 
and used by lenders and creditors. Different lenders and creditors use 
different scoring formulas to determine whether to extend credit or 
make a loan to you, and the terms of the credit or loan. An educational 
credit score is not a credit score that a person who makes a loan or 
extends credit to you is likely to use. Educational credit scores are 
merely intended to be used as an educational tool to help consumers 
understand how the information contained in a consumer report may 
affect the terms and conditions of a loan or extension of credit that 
may be available to a consumer. Lenders and creditors may also rely on 
information not contained in your consumer report and not reflected in 
the calculation of your credit score.'.
            ``(6) Additional requirements for educational credit 
        scores.--
                    ``(A) Disclaimer.--If an educational credit score 
                is provided pursuant to paragraph (1), a consumer 
                reporting agency shall clearly and conspicuously 
                include in a prominent location on the statement, in 
                boldface type of 18-point font or larger, and in a text 
                box with boldface outer borders, the following notice:

```EDUCATIONAL CREDIT SCORE DISCLAIMER.

    ```The educational credit score provided to you is not a credit 
score that a lender or creditor is likely to use to make a loan or 
extend credit to you. There are many different credit scores derived 
from a wide variety of models used by lenders and creditors. An 
educational credit score is merely an educational tool. It is intended 
to provide consumers with a basic understanding of how the information 
contained in a consumer report may affect the terms and conditions of 
credit that are available. The credit scores you receive directly from 
different lenders and creditors may not be the same as an educational 
credit score. There are a number of reasons for this:
            ```(1) Each company may use a different formula for 
        calculating credit scores and the differences in the formulas 
        may lead to differences in your scores.
            ```(2) Companies may produce scores that give results on 
        different scales.
            ```(3) Not all lenders or creditors report to every 
        consumer reporting agency, and therefore the information 
        contained in your consumer report that the consumer reporting 
        agencies use to calculate your educational credit score may 
        differ among agencies.'.
                    ``(B) Prohibition on misleading representations.--A 
                consumer reporting agency may not refer to an 
                educational credit score as a credit score in any 
                application, solicitation, marketing, or other 
                informational materials or media.
            ``(7) Modification of disclaimers.--The Bureau may modify 
        the content, format, and manner of the disclaimers required 
        under paragraphs (5) and (6), if warranted, after conducting 
        consumer testing or research.''.

SEC. 6. PROVIDES CONSUMERS WITH FREE CREDIT SCORE DISCLOSURES WITH 
              THEIR FREE ANNUAL CONSUMER REPORTS UPON REQUEST AND 
              CREATES INSTANCES WHEN CONSUMERS AUTOMATICALLY RECEIVE 
              FREE CONSUMER REPORTS AND CREDIT SCORES.

    (a) In General.--Section 612 of the Fair Credit Reporting Act (15 
U.S.C. 1681j) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by inserting after 
                        ``section 609'' the following: ``(including the 
                        disclosure of a credit score or educational 
                        credit score under subsection (f) of such 
                        section)''; and
                            (ii) in subparagraph (C)--
                                    (I) by striking ``Commission'' each 
                                place such term appears and inserting 
                                ``Bureau''; and
                                    (II) by inserting ``, credit 
                                scores, and educational credit scores 
                                (as applicable)'' after ``consumer 
                                reports'' each place that term appears;
                    (B) in paragraph (2)--
                            (i) by striking ``15 days'' and inserting 
                        ``3 business days''; and
                            (ii) by inserting ``, credit score, or 
                        educational credit score'' after ``consumer 
                        report'';
                    (C) in paragraph (3), by inserting ``, credit 
                score, or educational credit score'' after ``consumer 
                report''; and
                    (D) in paragraph (4), by inserting ``, credit 
                scores, or educational credit scores'' after ``consumer 
                reports'';
            (2) in subsection (b), by inserting ``(including the 
        disclosure of a credit score or educational credit score, as 
        applicable, under subsection (f) of such section)'' after 
        ``section 609'';
            (3) in subsection (c)--
                    (A) by inserting ``(including the disclosure of a 
                credit score or educational credit score under 
                subsection (f) of such section)'' after ``pursuant to 
                section 609'';
                    (B) in paragraph (2), by striking ``; or'' and 
                inserting a semicolon;
                    (C) in paragraph (3), by striking the period at the 
                end and inserting a semicolon; and
                    (D) by adding at the end the following new 
                paragraphs:
            ``(4) has disputed information, or submitted an appeal of 
        an investigation or reinvestigation of such information, under 
        section 611 or 623, regardless of whether the consumer has 
        already received a credit report, credit score, or educational 
        credit score under section 611 or 623; or
            ``(5) has had information that was previously deleted under 
        section 611(a)(5) reinserted into the consumer's file, 
        regardless of whether the consumer has already received a 
        credit report, credit score, or educational credit score under 
        such section.'';
            (4) in subsection (d), by inserting ``(including the 
        disclosure of a credit score or educational credit score under 
        subsection (f) of such section)'' after ``section 609'';
            (5) in subsection (f)(1)--
                    (A) by striking ``reasonable charge'' and all that 
                follows through ``section 609'' and inserting 
                ``reasonable charge on a consumer for providing a 
                consumer report to a consumer'';
                    (B) by striking subparagraph (B);
                    (C) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively (and conforming 
                the margins accordingly); and
                    (D) in subparagraph (B) (as so redesignated), by 
                striking ``disclosure; and'' and inserting 
                ``disclosure.''; and
            (6) by adding at the end the following new subsections:
    ``(h) Centralized Source for Obtaining Free Copy of Consumer Report 
and Scores.--
            ``(1) Nationwide consumer reporting agencies.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, each consumer 
                reporting agency described under subsection (p) of 
                section 603 shall prominently display on the home page 
                of the agency's website--
                            ``(i) a hyperlink labeled `Get Your Free 
                        Annual Credit Reports along with either your 
                        Credit Scores or Educational Credit Scores 
                        provided for under Federal Law' or 
                        substantially similar text, as determined by 
                        the Bureau; and
                            ``(ii) a disclosure titled `Consumer's 
                        Right to Free Credit Scores, Educational Credit 
                        Scores, and Reports under Federal Law' or 
                        substantially similar text, as determined by 
                        the Bureau that includes the following 
                        statement:
    ```All consumers are entitled to obtain a free copy of their 
consumer report and credit score or educational credit score annually 
from each of the nationwide consumer reporting agencies. Under Federal 
law, a consumer is entitled to obtain additional free copies of their 
consumer reports, along with a copy of either the consumer's credit 
score or educational credit score (under certain circumstances), 
including:
            ```(1) When a consumer is unemployed and intends to apply 
        for employment within 60 days.
            ```(2) When a consumer is a recipient of public welfare 
        assistance.
            ```(3) When a consumer has a reasonable belief that their 
        report contains inaccuracies as a result of fraud.
            ```(4) When a consumer 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.
            ```(5) When a consumer files a dispute or an appeal of the 
        results of a dispute with a consumer reporting agency or a 
        person who furnished information to the consumer reporting 
        agency regarding the accuracy or completeness of the 
        information contained on their report.
            ```(6) After a furnisher of information discovers it has 
        furnished inaccurate or incomplete information to a consumer 
        reporting agency, and the furnisher notifies the agency of the 
        error.
            ```(7) After an adverse action is taken against a consumer 
        or a consumer receives a risk-based pricing notice.
            ```(8) When a mortgage lender, private educational lender, 
        indirect auto lender, or motor vehicle lender obtains and uses 
        a consumer's reports or scores for underwriting purposes.'.
                    ``(B) Hyperlink requirements.--The hyperlink 
                described in subparagraph (A)(i) shall be prominently 
                located on the top of the home page and should link 
                directly to the website of the centralized source 
                established pursuant to section 211(d) of the Fair and 
                Accurate Credit Transactions Act of 2003 (15 U.S.C. 
                1681j note).
                    ``(C) Modifications.--The Bureau may modify the 
                disclosure described in subparagraph (A)(ii) as 
                necessary to include other circumstances under which a 
                consumer has the right to receive a free consumer 
                report, credit score, or educational credit score.
            ``(2) Nationwide specialty consumer reporting agencies.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, each 
                nationwide specialty consumer reporting agency shall 
                prominently display on the Internet home webpage of the 
                agency a disclosure titled `Consumer's Right to Free 
                Consumer Reports and Credit Score or Educational Credit 
                Score (as applicable) under Federal Law'. Such 
                disclosure shall include the following statement:
    ```Upon request, all consumers are entitled to obtain a free copy 
of their consumer report and credit score or educational credit score 
(as applicable) during any 12-month period from each of the nationwide 
specialty consumer reporting agencies. Federal law also provides 
further circumstances under which a consumer is entitled to obtain 
additional free copies of their consumer report and credit score or 
educational credit score (as applicable) including:
            ```(1) When a consumer is unemployed and intends to apply 
        for employment within 60 days.
            ```(2) When a consumer is a recipient of public welfare 
        assistance.
            ```(3) When a consumer has a reasonable belief that their 
        report contains inaccuracies as a result of fraud.
            ```(4) When a consumer files a dispute or an appeal of the 
        results of a dispute with a consumer reporting agency or a 
        person who furnished information to the consumer reporting 
        agency regarding the accuracy or completeness of the 
        information contained on their report.
            ```(5) After a furnisher of information discovers it has 
        furnished inaccurate or incomplete information to a consumer 
        reporting agency, and the furnisher notifies the agency of the 
        error.
            ```(6) After an adverse action is taken against a consumer 
        or a consumer receives a risk-based pricing notice.
            ```(7) When a mortgage lender, private educational lender, 
        indirect auto lender, or motor vehicle lender obtains and uses 
        a consumer's reports or scores for underwriting purposes.'.
                    ``(B) Modifications.--The Bureau may modify the 
                disclosure described in subparagraph (A) as necessary 
                to include other circumstances under which a consumer 
                has the right to receive a free consumer report and 
                credit score or educational credit score (as 
                applicable).
                    ``(C) Toll-free telephone access.--The information 
                described in this paragraph shall also be made 
                available via a toll-free telephone number. Such number 
                shall be prominently displayed on the home page of the 
                website of each nationwide specialty consumer reporting 
                agency. Each of the circumstances under which a 
                consumer may obtain a free consumer report and credit 
                score or educational credit score (as applicable) shall 
                be presented in an easily understandable format and 
                consumers shall be directed to an individual who is a 
                customer service representative not later than 2 
                minutes after the initial phone connection is made by 
                the consumer. Information provided through such 
                telephone number shall comply with the requirements of 
                section 633.
                    ``(D) Online consumer reports; exemption.--Upon 
                receipt of a request by a consumer for a consumer 
                report, each nationwide specialty consumer reporting 
                agency shall provide access to such report 
                electronically on the Internet website described in 
                section 611(h).
    ``(i) Automatic Provision of Free Consumer Reports and Credit 
Scores or Educational Credit Scores.--A consumer reporting agency shall 
provide to a consumer a free copy of the file and credit score or 
educational credit score of the consumer who--
            ``(1) obtains a fraud alert, extended alert, active duty 
        alert, or security freeze as described in section 605A; or
            ``(2) has disputed information, or submitted an appeal of 
        an investigation or reinvestigation of such information, under 
        section 611 or 623.''.
    (b) Technical Amendment.--Section 615(h)(7) of such Act (15 U.S.C. 
1681m(h)(7)) is amended by striking ``section'' and inserting 
``subsection''.

SEC. 7. REQUIRES PRIVATE EDUCATIONAL LENDERS TO PROVIDE CONSUMERS WITH 
              FREE COPIES OF ANY CONSUMER REPORTS AND CREDIT SCORES 
              THAT THEY USED FOR UNDERWRITING BEFORE CONSUMERS SIGN 
              LOAN AGREEMENTS.

    Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g) is 
amended by adding at the end the following new subsection:
    ``(h) Disclosure of Consumer Reports and Credit Scores by Private 
Educational Lenders.--
            ``(1) In general.--If a private educational lender obtains 
        a copy of any consumer reports or credit scores and uses such 
        reports or scores in connection with an application of a 
        consumer for a private education loan, the private educational 
        lender shall provide to the consumer, not later than 3 business 
        days after obtaining such reports or scores and before the date 
        on which the consumer enters into a loan agreement with the 
        private educational lender, a copy of any such reports or 
        scores, along with the statement described under subsection 
        (f)(2).
            ``(2) Costs.--None of the costs to the private educational 
        lender associated with procuring consumer reports or credit 
        scores under this subsection may be charged, directly or 
        indirectly, to the consumer.
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to eliminate any requirement for creditors 
        and lenders to provide credit score disclosures, including the 
        statement described under subsection (f)(2), to consumers as 
        part of an adverse action or risk-based pricing notice.''.

SEC. 8. REQUIRES MOTOR VEHICLE LENDERS OR INDIRECT AUTO LENDERS TO 
              PROVIDE CONSUMERS WITH FREE COPIES OF ANY CONSUMER 
              REPORTS AND CREDIT SCORES THAT THEY USED FOR UNDERWRITING 
              BEFORE CONSUMERS SIGN LEASE OR LOAN AGREEMENTS.

    Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g), as 
amended by section 6, is further amended by adding at the end the 
following new subsection:
    ``(i) Disclosure of Consumer Reports and Credit Scores Used by 
Motor Vehicle Lenders or Indirect Auto Lenders.--
            ``(1) In general.--If a motor vehicle lender or indirect 
        auto lender obtains a copy of any consumer reports or credit 
        scores and uses such reports or scores in connection with an 
        application of a consumer for a motor vehicle loan or lease, 
        the motor vehicle lender or indirect auto lender shall provide 
        to the consumer a document, separate from the consumer's lease 
        or purchase agreement and before the consumer enters into a 
        lease or purchase agreement, disclosing any consumer reports 
        and credit scores, including the statement described in 
        subsection (f)(2), used by the lender to determine whether to 
        extend credit to the consumer.
            ``(2) Costs.--None of the costs to the motor vehicle lender 
        or indirect auto lender associated with procuring consumer 
        reports or credit scores under this subsection may be charged, 
        directly or indirectly, to the consumer.
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to eliminate any requirement for creditors 
        and lenders to provide credit score disclosures, including the 
        statement described under subsection (f)(2), to consumers as 
        part of an adverse action or risk-based pricing notice.
            ``(4) Definitions.--
                    ``(A) Indirect auto lender.--The term `indirect 
                auto lender' has the meaning given the term by the 
                Bureau, and shall include a person extending a loan 
                made with respect to a car, boat, motorcycle, 
                recreational vehicle, or other similar vehicle used 
                primarily for personal or household purposes.
                    ``(B) Motor vehicle lender.--The term `motor 
                vehicle lender' has the meaning given the term by the 
                Board of Governors of the Federal Reserve System, and 
                shall include a person extending a loan made with 
                respect to a car, boat, motorcycle, recreational 
                vehicle, or other similar vehicle used primarily for 
                personal or household purposes.''.

SEC. 9. REQUIRES RESIDENTIAL MORTGAGE LENDERS TO PROVIDE CONSUMERS WITH 
              FREE COPIES OF ANY CONSUMER REPORTS AND CREDIT SCORES 
              THAT THEY USED FOR UNDERWRITING BEFORE CONSUMERS SIGN 
              LOAN AGREEMENTS.

    Section 609(g) of the Fair Credit Reporting Act (15 U.S.C. 
1681g(g)) is amended--
            (1) by redesignating paragraph (2) as paragraph (5);
            (2) in paragraph (1)--
                    (A) by striking ``a consumer credit score'' and 
                inserting ``any consumer reports or credit scores'';
                    (B) by striking ``, as defined in subsection 
                (f),'';
                    (C) by striking ``the following to the consumer as 
                soon as reasonably practicable:'' and inserting ``, not 
                later than 3 business days after using such reports or 
                scores, a document disclosing any consumer reports and 
                credit scores used by the lender to determine whether 
                to extend credit to the consumer along with the 
                statement described in subsection (f)(2).'';
                    (D) by striking subparagraphs (A), (B), (C), (E), 
                and (F);
                    (E) by redesignating subparagraph (D) as paragraph 
                (3) (and adjusting the margins accordingly); and
                    (F) by redesignating subparagraph (G) as paragraph 
                (4) (and adjusting the margins accordingly);
            (3) by inserting before paragraph (3) (as so redesignated) 
        the following new paragraph:
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to eliminate any requirement for lenders to 
        provide credit score disclosures, including the statement 
        described under subsection (f)(2), to consumers as part of an 
        adverse action or risk-based pricing notice.'';
            (4) in paragraph (3) (as so redesignated), in the quoted 
        material--
                    (A) by inserting ``, free of charge,'' after 
                ``disclose to you''; and
                    (B) by striking ``affecting your credit scores'' 
                and inserting ``affecting your credit score or 
                scores'';
            (5) in paragraph (5) (as so redesignated) by inserting ``or 
        scores'' after ``credit score'' each place such term appears; 
        and
            (6) by adding at the end the following new paragraphs:
            ``(6) Actions not required.--This subsection shall not 
        require any person to disclose any credit score or related 
        information obtained by the person after a loan has closed.
            ``(7) No procurement costs.--None of the costs to the 
        creditor or lender associated with procuring any consumer 
        reports or scores under this subsection may be charged, 
        directly or indirectly, to the consumer.''.

SEC. 10. RULEMAKING.

    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.
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