Title: Disaster Protection for Workers’ Credit Act
Policy area: Finance and Financial Sector

Summary:
Disaster Protection for Workers' Credit Act
This bill provides credit protections to consumers during the COVID-19 (i.e., coronavirus disease 2019) outbreak and other major disasters. The bill generally prohibits furnishers of credit information from reporting adverse credit information that is the result of any inaction or action that occurred during the COVID-19 outbreak. It also prohibits any such reporting regarding a consumer who resides in an area covered by a major disaster declaration. Additionally, medical debt related to the COVID-19 outbreak or a major disaster may not be reported to a consumer reporting agency regardless of when the expenses were incurred.
Credit reporting agencies are prohibited from including in a credit report any such adverse credit information.
The Consumer Financial Protection Bureau must create a website that allows consumers to report economic hardship as a result of the COVID-19 outbreak or a major disaster. Consumers may request the deletion of adverse credit information and request an extension of certain credit protections.
Credit reporting agencies must provide unlimited free credit reports and free credit scores upon request (1) during the COVID-19 outbreak or a major disaster, and (2) for a year afterwards.
The bill places restrictions on new credit scoring models created or implemented during the COVID-19 outbreak or a major disaster.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6370 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6370

    To amend the Fair Credit Reporting Act to provide for disaster 
                    protection for workers' credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 23, 2020

 Mr. Sherman introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
    To amend the Fair Credit Reporting Act to provide for disaster 
                    protection for workers' credit.

    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 ``Disaster Protection for Workers' 
Credit Act''.

SEC. 2. PURPOSE.

    The purpose of this Act, and the amendments made by this Act, is to 
protect consumers' credit from negative impacts as a result of 
financial hardship due to the coronavirus disease (COVID-19) outbreak 
and future major disasters.

SEC. 3. REPORTING OF INFORMATION DURING MAJOR DISASTERS.

    (a) In General.--The Fair Credit Reporting Act is amended by 
inserting after section 605B the following:
``Sec. 605C. Reporting of information during major disasters
    ``(a) Definitions.--In this section:
            ``(1) COVID-19 emergency period.--The term `COVID-19 
        emergency period' means the period beginning on the date of 
        enactment of this section and ending on the later of--
                    ``(A) 120 days after the date of enactment of this 
                section; or
                    ``(B) 120 days after the date of termination by the 
                Federal Emergency Management Administration of the 
                emergency declared on March 13, 2020, by the President 
                under the Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 4121 et seq.) 
                relating to the Coronavirus Disease 2019 (COVID-19) 
                pandemic.
            ``(2) Covered major disaster period.--The term `covered 
        major disaster period' means--
                    ``(A) the period beginning on the date on which a 
                major disaster is declared by the President under 
                section 401 of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5170), under 
                which assistance is authorized under section 408 of 
                such Act (42 U.S.C. 5174), and ending on the date that 
                is 120 days after the end of the incident period 
                designated in such declaration; or
                    ``(B) the period ending 120 days after the date of 
                termination by the Federal Emergency Management 
                Administration of the emergency declared on March 13, 
                2020, by the President under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act (42 U.S.C. 
                4121 et seq.) relating to the Coronavirus Disease 2019 
                (COVID-19) pandemic.
            ``(3) Major disaster.--The term `major disaster' means a 
        major disaster declared by the President under section 401 of 
        the Robert T. Stafford Disaster Relief and Emergency Assistance 
        Act (42 U.S.C. 5170),  under which assistance is authorized 
        under section 408 of such Act (42 U.S.C. 5174).
    ``(b) Moratorium on Furnishing Adverse Information During COVID-19 
Emergency Period.--No person may furnish any adverse item of 
information (except information related to a felony criminal 
conviction) relating to a consumer that was the result of any action or 
inaction that occurred during the COVID-19 emergency period.
    ``(c) Moratorium on Furnishing Adverse Information During Covered 
Major Disaster Period.--No person may furnish any adverse item of 
information (except information related to a felony criminal 
conviction) relating to a consumer that was the result of any action or 
inaction that occurred during a covered major disaster period if the 
consumer is a resident of the affected area covered by a declaration 
made by the President under section 401 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), under 
which assistance is authorized under section 408 of such Act (42 U.S.C. 
5174).
    ``(d) Information Excluded From Consumer Reports.--In addition to 
the information described in section 605(a), no consumer reporting 
agency may make any consumer report containing an adverse item of 
information (except information related to a felony criminal 
conviction) reported relating to a consumer that was the result of any 
action or inaction that occurred during the COVID-19 emergency period 
or a covered major disaster period, and as applicable under subsection 
(f)(3), for 270 days after the expiration of the applicable period.
    ``(e) Summary of Rights.--Not later than 60 days after the date of 
enactment of this subsection, the Bureau shall update the model summary 
of rights under section 609(c)(1) to include a description of the right 
of a consumer to--
            ``(1) request the deletion of adverse items of information 
        under subsection (f); and
            ``(2) request a consumer report or score, without charge to 
        the consumer, under subsection (g).
    ``(f) Deletion of Adverse Items of Information Resulting From the 
Coronavirus Disease (COVID-19) Outbreak and Major Disasters.--
            ``(1) Reporting.--
                    ``(A) In general.--Not later than 60 days after the 
                date of enactment of this subsection, the Bureau shall 
                create a website for consumers to report, under penalty 
                of perjury, economic hardship as a result of the 
                coronavirus disease (COVID-19) outbreak or a major 
                disaster (if the consumer is a resident of the affected 
                area covered by such major disaster) for the purpose of 
                extending credit report protection for an additional 
                270 days after the end of the COVID-19 emergency period 
                or covered major disaster period, as applicable.
                    ``(B) Documentation.--The Bureau shall--
                            ``(i) not require any documentation from a 
                        consumer to substantiate the economic hardship; 
                        and
                            ``(ii) provide notice to the consumer that 
                        a report under subparagraph (A) is under 
                        penalty of perjury.
                    ``(C) Reporting period.--A consumer may report 
                economic hardship under subparagraph (A) during the 
                COVID-19 emergency period or a covered major disaster 
                period, as applicable, and for 60 days thereafter.
            ``(2) Database.--The Bureau shall establish and maintain a 
        secure database that--
                    ``(A) is accessible to each consumer reporting 
                agency described in section 603(p) and nationwide 
                specialty consumer reporting agency for purposes of 
                fulfilling their duties under paragraph (3) to check 
                and automatically delete any adverse item of 
                information (except information related to a felony 
                criminal conviction) reported that occurred during the 
                COVID-19 emergency period or a covered major disaster 
                period with respect to a consumer; and
                    ``(B) contains the information reported under 
                paragraph (1).
            ``(3) Deletion of adverse items of information by 
        nationwide consumer reporting and nationwide specialty consumer 
        reporting agencies.--
                    ``(A) In general.--Each consumer reporting agency 
                described in section 603(p) and each nationwide 
                specialty consumer reporting agency shall, using the 
                information contained in the database established under 
                paragraph (2), delete from the file of each consumer 
                named in the database each adverse item of information 
                (except information related to a felony criminal 
                conviction) that was a result of an action or inaction 
                that occurred during the COVID-19 emergency period or a 
                covered major disaster period up to 270 days following 
                the end of the such period.
                    ``(B) Timeline.--Each consumer reporting agency 
                described in section 603(p) and each nationwide 
                specialty consumer reporting agency shall check the 
                database at least weekly and delete adverse items of 
                information as soon as practicable after information 
                that is reported under paragraph (1) appears in the 
                database established under paragraph (2).
            ``(4) Request for deletion of adverse items of 
        information.--
                    ``(A) In general.--A consumer who has filed a 
                report of economic hardship with the Bureau may submit 
                a request, without charge to the consumer, to a 
                consumer reporting agency to delete from the consumer's 
                file an adverse item of information (except information 
                related to a felony criminal conviction) that was a 
                result of an action or inaction that occurred during 
                the COVID-19 emergency period or a covered major 
                disaster period up to 270 days following the end of the 
                such period.
                    ``(B) Timing.--A consumer may submit a request 
                under subparagraph (A), not later than 270-day period 
                described in that subparagraph.
                    ``(C) Removal and notification.--Upon receiving a 
                request under this paragraph to delete an adverse item 
                of information, a consumer reporting agency shall--
                            ``(i) delete the adverse item of 
                        information (except information related to a 
                        felony criminal conviction) from the consumer's 
                        file; and
                            ``(ii) notify the consumer and the 
                        furnisher of the adverse item of information of 
                        the deletion.
    ``(g) Free Credit Report and Scores.--
            ``(1) In general.--During the COVID-19 emergency period or 
        a covered major disaster period and ending 12 months after the 
        expiration of the COVID-19 emergency period or covered major 
        disaster period, as applicable, each consumer reporting agency 
        as described under 603(p) and nationwide specialty consumer 
        reporting agency shall make all disclosures described under 
        section 609 upon request by a consumer, by mail or online, 
        without charge to the consumer and without limitation as to the 
        number of requests. A consumer reporting agency shall also 
        supply a consumer, upon request and without charge, with a 
        credit score that--
                    ``(A) is derived from a credit scoring model that 
                is widely distributed to users by the consumer 
                reporting agency for the purpose of any extension of 
                credit or other transaction designated by the consumer 
                who is requesting the credit score; or
                    ``(B) is widely distributed to lenders of common 
                consumer loan products and predicts the future credit 
                behavior of the consumer.
            ``(2) Timing.--A file disclosure or credit score under 
        paragraph (1) shall be provided to the consumer not later 
        than--
                    ``(A) 7 days after the date on which the request is 
                received if the request is made by mail; and
                    ``(B) not later than 15 minutes if the request is 
                made online.
            ``(3) Additional reports.--A file disclosure provided under 
        paragraph (1) shall be in addition to any disclosure requested 
        by the consumer under section 612(a).
            ``(4) Prohibition.--A consumer reporting agency that 
        receives a request under paragraph (1) may not request or 
        require any documentation from the consumer that demonstrates 
        that the consumer was impacted by the coronavirus disease 
        (COVID-19) outbreak or a major disaster (except to verify that 
        the consumer resides in an area covered by the major disaster) 
        as a condition of receiving the file disclosure or score.
    ``(h) Posting of Rights.--Not later than 30 days after the date of 
enactment of this section, each consumer reporting agency shall 
prominently post and maintain a direct link on the homepage of the 
public website of the consumer reporting agency information relating to 
the right of consumers to--
            ``(1) request the deletion of adverse items of information 
        (except information related to a felony criminal conviction) 
        under subsection (f); and
            ``(2) request consumer file disclosures and scores, without 
        charge to the consumer, under subsection (g).
    ``(i) Ban on Reporting Medical Debt Information Related to COVID-19 
or a Major Disaster.--
            ``(1) Furnishing ban.--No person shall furnish adverse 
        information to a consumer reporting agency related to medical 
        debt if such medical debt is with respect to medical expenses 
        related to treatments arising from COVID-19 or a major disaster 
        (whether or not the expenses were incurred during the COVID-19 
        emergency period or covered major disaster period).
            ``(2) Consumer report ban.--No consumer reporting agency 
        may made a consumer report containing adverse information 
        related to medical debt if such medical debt is with respect to 
        medical expenses related to treatments arising from COVID-19 or 
        a major disaster (whether or not the expenses were incurred 
        during the COVID-19 emergency period or covered major disaster 
        period).
    ``(j) Credit Scoring Models.--A person that creates and implements 
credit scoring models may not treat the absence, omission, or deletion 
of any information pursuant to this section as a negative factor or 
negative value in credit scoring models created or implemented by such 
person.''.
    (b) Technical and Conforming Amendment.--The table of contents for 
the Fair Credit Reporting Act is amended by inserting after the item 
relating to section 605B the following:

``605C. Reporting of information during major disasters.''.

SEC. 4. LIMITATIONS ON NEW CREDIT SCORING MODELS DURING THE COVID-19 
              EMERGENCY AND MAJOR DISASTERS.

    The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended--
            (1) by adding at the end the following:
``Sec. 630. Limitations on new credit scoring models during the COVID-
              19 emergency and major disasters
    ``With respect to a person that creates and implements credit 
scoring models, such person may not, during the COVID-19 emergency 
period or a covered major disaster period (as such terms are defined 
under section 605C), create or implement a new credit scoring model 
(including a revision to an existing scoring model) if the new credit 
scoring model would identify a significant percentage of consumers as 
being less creditworthy when compared to the previous credit scoring 
models created or implemented by such person.''; and
            (2) in the table of contents for such Act, by adding at the 
        end the following new item:

``630. Limitations on new credit scoring models during major 
                            disasters.''.
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