Title: Disaster Protection for Workers’ Credit Act of 2020
Policy area: Finance and Financial Sector

Summary:
Disaster Protection for Workers' Credit Act of 2020
This bill generally provides credit protections to consumers during the COVID-19 (i.e., coronavirus disease 2019) outbreak and other major disasters. The bill 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.
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.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3508 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3508

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2020

 Mr. Schatz (for himself and Mr. Brown) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 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 of 2020''.

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) Covered coronavirus disease (covid-19) outbreak 
        period.--The term `covered coronavirus disease (COVID-19) 
        outbreak period' means the period beginning on January 31, 
        2020, and ending on the later of--
                    ``(A) 120 days after the date of enactment of this 
                section; or
                    ``(B) 120 days after the date on which the public 
                health emergency declared by the Secretary of Health 
                and Human Services on January 31, 2020, under section 
                319 of the Public Health Service Act (42 U.S.C. 247d), 
                terminates.
            ``(2) Covered major disaster period.--The term `covered 
        major disaster period' means 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) and ending on the 
        date that is 120 days after the end of the incident period 
        designated in such declaration.
            ``(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 Covered 
Coronavirus Disease (COVID-19) Outbreak Period.--No person may furnish 
any adverse item of information relating to a consumer that was the 
result of any action or inaction that occurred during the covered 
coronavirus disease (COVID-19) outbreak period.
    ``(c) Moratorium on Furnishing Adverse Information During Covered 
Major Disaster Period.--No person may furnish any adverse item of 
information 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).
    ``(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 reported relating to a consumer that was the result of any 
action or inaction that occurred during the covered coronavirus disease 
(COVID-19) outbreak 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.--The model summary of rights under section 
609(c)(1) shall 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 30 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 for the purpose of extending credit report 
                protection for an additional 270 days after the end of 
                the covered coronavirus disease (COVID-19) outbreak 
                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 
                covered coronavirus disease (COVID-19) outbreak 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 reported that occurred during the covered 
                coronavirus disease (COVID-19) outbreak 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 
                that was a result of an action or inaction that 
                occurred during the covered coronavirus disease (COVID-
                19) outbreak 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 that was a result 
                of an action or inaction that occurred during the 
                covered coronavirus disease (COVID-19) outbreak 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 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 covered coronavirus disease 
        (COVID-19) outbreak period or a covered major disaster period 
        and ending 12 months after the expiration of the covered 
        coronavirus disease (COVID-19) outbreak 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 
        under subsection (f); and
            ``(2) request consumer file disclosures and scores, without 
        charge to the consumer, under subsection (g).''.
    (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.''.
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