One Hundred Eighth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, two thousand and three
An Act
To amend the Fair Credit Reporting Act, to prevent identity theft,
improve resolution of consumer disputes, improve the accuracy of consumer
records, make improvements in the use of, and consumer access to, credit
information, 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 `Fair and Accurate Credit
Transactions Act of 2003'.
(b) TABLE OF CONTENTS- The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION
Subtitle A--Identity Theft Prevention
Sec. 111. Amendment to definitions.
Sec. 112. Fraud alerts and active duty alerts.
Sec. 113. Truncation of credit card and debit card account
numbers.
Sec. 114. Establishment of procedures for the identification of possible
instances of identity theft.
Sec. 115. Authority to truncate social security numbers.
Subtitle B--Protection and Restoration of Identity Theft Victim Credit
History
Sec. 151. Summary of rights of identity theft victims.
Sec. 152. Blocking of information resulting from identity theft.
Sec. 153. Coordination of identity theft complaint investigations.
Sec. 154. Prevention of repollution of consumer reports.
Sec. 155. Notice by debt collectors with respect to fraudulent
information.
Sec. 156. Statute of limitations.
Sec. 157. Study on the use of technology to combat identity theft.
TITLE II--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT
INFORMATION
Sec. 211. Free consumer reports.
Sec. 212. Disclosure of credit scores.
Sec. 213. Enhanced disclosure of the means available to opt out of
prescreened lists.
Sec. 214. Affiliate sharing.
Sec. 215. Study of effects of credit scores and credit-based insurance
scores on availability and affordability of financial products.
Sec. 216. Disposal of consumer report information and records.
Sec. 217. Requirement to disclose communications to a consumer reporting
agency.
TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION
Sec. 311. Risk-based pricing notice.
Sec. 312. Procedures to enhance the accuracy and integrity of
information furnished to consumer reporting agencies.
Sec. 313. FTC and consumer reporting agency action concerning
complaints.
Sec. 314. Improved disclosure of the results of reinvestigation.
Sec. 315. Reconciling addresses.
Sec. 316. Notice of dispute through reseller.
Sec. 317. Reasonable reinvestigation required.
Sec. 318. FTC study of issues relating to the Fair Credit Reporting
Act.
Sec. 319. FTC study of the accuracy of consumer reports.
TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE
FINANCIAL SYSTEM
Sec. 411. Protection of medical information in the financial
system.
Sec. 412. Confidentiality of medical contact information in consumer
reports.
TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT
Sec. 513. Establishment of Financial Literacy and Education
Commission.
Sec. 514. Duties of the Commission.
Sec. 515. Powers of the Commission.
Sec. 516. Commission personnel matters.
Sec. 517. Studies by the Comptroller General.
Sec. 518. The national public service multimedia campaign to enhance the
state of financial literacy.
Sec. 519. Authorization of appropriations.
TITLE VI--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS
Sec. 611. Certain employee investigation communications excluded from
definition of consumer report.
TITLE VII--RELATION TO STATE LAWS
Sec. 711. Relation to State laws.
TITLE VIII--MISCELLANEOUS
Sec. 811. Clerical amendments.
SEC. 2. DEFINITIONS.
(1) the term `Board' means the Board of Governors of the Federal Reserve
System;
(2) the term `Commission', other than as used in title V, means the
Federal Trade Commission;
(3) the terms `consumer', `consumer report', `consumer reporting
agency', `creditor', `Federal banking agencies', and `financial institution'
have the same meanings as in section 603 of the Fair Credit Reporting Act,
as amended by this Act; and
(4) the term `affiliates' means persons that are related by common
ownership or affiliated by corporate control.
SEC. 3. EFFECTIVE DATES.
Except as otherwise specifically provided in this Act and the amendments
made by this Act--
(1) before the end of the 2-month period beginning on the date of
enactment of this Act, the Board and the Commission shall jointly prescribe
regulations in final form establishing effective dates for each provision of
this Act; and
(2) the regulations prescribed under paragraph (1) shall establish
effective dates that are as early as possible, while allowing a reasonable
time for the implementation of the provisions of this Act, but in no case
shall any such effective date be later than 10 months after the date of
issuance of such regulations in final form.
TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY
RESTORATION
Subtitle A--Identity Theft Prevention
SEC. 111. AMENDMENT TO DEFINITIONS.
Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is amended
by adding at the end the following:
`(q) DEFINITIONS RELATING TO FRAUD ALERTS-
`(1) ACTIVE DUTY MILITARY CONSUMER- The term `active duty military
consumer' means a consumer in military service who--
`(A) is on active duty (as defined in section 101(d)(1) of title 10,
United States Code) or is a reservist performing duty under a call or
order to active duty under a provision of law referred to in section
101(a)(13) of title 10, United States Code; and
`(B) is assigned to service away from the usual duty station of the
consumer.
`(2) FRAUD ALERT; ACTIVE DUTY ALERT- The terms `fraud alert' and `active
duty alert' mean a statement in the file of a consumer that--
`(A) notifies all prospective users of a consumer report relating to
the consumer that the consumer may be a victim of fraud, including
identity theft, or is an active duty military consumer, as applicable;
and
`(B) is presented in a manner that facilitates a clear and conspicuous
view of the statement described in subparagraph (A) by any person
requesting such consumer report.
`(3) IDENTITY THEFT- The term `identity theft' means a fraud committed
using the identifying information of another person, subject to such further
definition as the Commission may prescribe, by regulation.
`(4) IDENTITY THEFT REPORT- The term `identity theft report' has the
meaning given that term by rule of the Commission, and means, at a minimum,
a report--
`(A) that alleges an identity theft;
`(B) 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 Commission; and
`(C) 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.
`(5) NEW CREDIT PLAN- The term `new credit plan' means a new account
under an open end credit plan (as defined in section 103(i) of the Truth in
Lending Act) or a new credit transaction not under an open end credit
plan.
`(r) Credit and Debit Related Terms--
`(1) CARD ISSUER- The term `card issuer' means--
`(A) a credit card issuer, in the case of a credit card; and
`(B) a debit card issuer, in the case of a debit card.
`(2) CREDIT CARD- The term `credit card' has the same meaning as in
section 103 of the Truth in Lending Act.
`(3) DEBIT CARD- The term `debit card' means any card issued by a
financial institution to a consumer for use in initiating an electronic fund
transfer from the account of the consumer at such financial institution, for
the purpose of transferring money between accounts or obtaining money,
property, labor, or services.
`(4) ACCOUNT AND ELECTRONIC FUND TRANSFER- The terms `account' and
`electronic fund transfer' have the same meanings as in section 903 of the
Electronic Fund Transfer Act.
`(5) CREDIT AND CREDITOR- The terms `credit' and `creditor' have the
same meanings as in section 702 of the Equal Credit Opportunity Act.
`(s) FEDERAL BANKING AGENCY- The term `Federal banking agency' has the
same meaning as in section 3 of the Federal Deposit Insurance Act.
`(t) FINANCIAL INSTITUTION- The term `financial institution' means a State
or National bank, a State or Federal savings and loan association, a mutual
savings bank, a State or Federal credit union, or any other person that,
directly or indirectly, holds a transaction account (as defined in section
19(b) of the Federal Reserve Act) belonging to a consumer.
`(u) RESELLER- The term `reseller' means a consumer reporting agency
that--
`(1) assembles and merges information contained in the database of
another consumer reporting agency or multiple consumer reporting agencies
concerning any consumer for purposes of furnishing such information to any
third party, to the extent of such activities; and
`(2) does not maintain a database of the assembled or merged information
from which new consumer reports are produced.
`(v) COMMISSION- The term `Commission' means the Federal Trade
Commission.
`(w) NATIONWIDE SPECIALTY CONSUMER REPORTING AGENCY- The term `nationwide
specialty consumer reporting agency' means a consumer reporting agency that
compiles and maintains files on consumers on a nationwide basis relating
to--
`(1) medical records or payments;
`(2) residential or tenant history;
`(3) check writing history;
`(4) employment history; or
SEC. 112. FRAUD ALERTS AND ACTIVE DUTY ALERTS.
(a) FRAUD ALERTS- The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.)
is amended by inserting after section 605 the following:
`Sec. 605A. Identity theft prevention; fraud alerts and active duty
alerts
`(a) ONE-CALL FRAUD ALERTS-
`(1) INITIAL ALERTS- Upon the direct request of a consumer, or an
individual acting on behalf of or as a personal representative of a
consumer, who asserts in good faith a suspicion that the consumer has been
or is about to become a victim of fraud or related crime, including identity
theft, 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 shall--
`(A) include a fraud alert in the file of that consumer, and also
provide that alert along with any credit score generated in using that
file, for a period of not less than 90 days, beginning on the date of such
request, unless the consumer or such representative requests that such
fraud alert be removed before the end of such period, and the agency has
received appropriate proof of the identity of the requester for such
purpose; and
`(B) refer the information regarding the fraud alert under this
paragraph to each of the other consumer reporting agencies described in
section 603(p), in accordance with procedures developed under section
621(f).
`(2) ACCESS TO FREE REPORTS- In any case in which a consumer reporting
agency includes a fraud alert in the file of a consumer pursuant to this
subsection, the consumer reporting agency shall--
`(A) disclose to the consumer that the consumer may request a free
copy of the file of the consumer pursuant to section 612(d); and
`(B) provide to the 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).
`(1) IN GENERAL- Upon the direct request of a consumer, or an individual
acting on behalf of or as a personal representative of a consumer, who
submits an identity theft report to a consumer reporting agency described in
section 603(p) that maintains a file on the consumer, if the agency has
received appropriate proof of the identity of the requester, the agency
shall--
`(A) include a fraud alert in the file of that consumer, and also
provide that alert along with any credit score generated in using that
file, during the 7-year period beginning on the date of such request,
unless the consumer or such representative requests that such fraud alert
be removed before the end of such period and the agency has received
appropriate proof of the identity of the requester for such
purpose;
`(B) during the 5-year period beginning on the date of such request,
exclude the consumer from any list of consumers prepared by the consumer
reporting agency and provided to any third party to offer credit or
insurance to the consumer as part of a transaction that was not initiated
by the consumer, unless the consumer or such representative requests that
such exclusion be rescinded before the end of such period; and
`(C) refer the information regarding the extended fraud alert under
this paragraph to each of the other consumer reporting agencies described
in section 603(p), in accordance with procedures developed under section
621(f).
`(2) ACCESS TO FREE REPORTS- In any case in which a consumer reporting
agency includes a fraud alert in the file of a consumer pursuant to this
subsection, the consumer reporting agency shall--
`(A) disclose to the consumer that the consumer may request 2 free
copies of the file of the consumer pursuant to section 612(d) during the
12-month period beginning on the date on which the fraud alert was
included in the file; and
`(B) provide to the 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).
`(c) ACTIVE DUTY ALERTS- Upon the direct request of an active duty
military consumer, or an individual acting on behalf of or as a personal
representative of an active duty military consumer, a consumer reporting
agency described in section 603(p) that maintains a file on the active duty
military consumer and has received appropriate proof of the identity of the
requester shall--
`(1) include an active duty alert in the file of that active duty
military consumer, and also provide that alert along with any credit score
generated in using that file, during a period of not less than 12 months, or
such longer period as the Commission shall determine, by regulation,
beginning on the date of the request, unless the active duty military
consumer or such representative requests that such fraud alert be removed
before the end of such period, and the agency has received appropriate proof
of the identity of the requester for such purpose;
`(2) during the 2-year period beginning on the date of such request,
exclude the active duty military consumer from any list of consumers
prepared by the consumer reporting agency and provided to any third party to
offer credit or insurance to the consumer as part of a transaction that was
not initiated by the consumer, unless the consumer requests that such
exclusion be rescinded before the end of such period; and
`(3) refer the information regarding the active duty alert to each of
the other consumer reporting agencies described in section 603(p), in
accordance with procedures developed under section 621(f).
`(d) PROCEDURES- Each consumer reporting agency described in section
603(p) shall establish policies and procedures to comply with this section,
including procedures that inform consumers of the availability of initial,
extended, and active duty alerts and procedures that allow consumers and
active duty military consumers to request initial, extended, or active duty
alerts (as applicable) in a simple and easy manner, including by telephone.
`(e) REFERRALS OF ALERTS- Each consumer reporting agency described in
section 603(p) that receives a referral of a fraud alert or active duty alert
from another consumer reporting agency pursuant to this section shall, as
though the agency received the request from the consumer directly, follow the
procedures required under--
`(1) paragraphs (1)(A) and (2) of subsection (a), in the case of a
referral under subsection (a)(1)(B);
`(2) paragraphs (1)(A), (1)(B), and (2) of subsection (b), in the case
of a referral under subsection (b)(1)(C); and
`(3) paragraphs (1) and (2) of subsection (c), in the case of a referral
under subsection (c)(3).
`(f) DUTY OF RESELLER TO RECONVEY ALERT- A reseller shall include in its
report any fraud alert or active duty alert placed in the file of a consumer
pursuant to this section by another consumer reporting agency.
`(g) DUTY OF OTHER CONSUMER REPORTING AGENCIES TO PROVIDE CONTACT
INFORMATION- If a consumer contacts any consumer reporting agency that is not
described in section 603(p) to communicate a suspicion that the consumer has
been or is about to become a victim of fraud or related crime, including
identity theft, the agency shall provide information to the consumer on how to
contact the Commission and the consumer reporting agencies described in
section 603(p) to obtain more detailed information and request alerts under
this section.
`(h) LIMITATIONS ON USE OF INFORMATION FOR CREDIT EXTENSIONS-
`(1) REQUIREMENTS FOR INITIAL AND ACTIVE DUTY ALERTS-
`(A) NOTIFICATION- Each initial fraud alert and active duty alert
under this section shall include information that notifies all prospective
users of a consumer report on the consumer to which the alert relates that
the consumer does not authorize the establishment of any new credit plan
or extension of credit, other than under an open-end credit plan (as
defined in section 103(i)), in the name of the consumer, or issuance of an
additional card on an existing credit account requested by a consumer, or
any increase in credit limit on an existing credit account requested by a
consumer, except in accordance with subparagraph (B).
`(B) LIMITATION ON USERS-
`(i) IN GENERAL- No prospective user of a consumer report that
includes an initial fraud alert or an active duty alert in accordance
with this section may establish a new credit plan or extension of
credit, other than under an open-end credit plan (as defined in section
103(i)), in the name of the consumer, or issue an additional card on an
existing credit account requested by a consumer, or grant any increase
in credit limit on an existing credit account requested by a consumer,
unless the user utilizes reasonable policies and procedures to form a
reasonable belief that the user knows the identity of the person making
the request.
`(ii) VERIFICATION- If a consumer requesting the alert has specified
a telephone number to be used for identity verification purposes, before
authorizing any new credit plan or extension described in clause (i) in
the name of such consumer, a user of such consumer report shall contact
the consumer using that telephone number or take reasonable steps to
verify the consumer's identity and confirm that the application for a
new credit plan is not the result of identity theft.
`(2) REQUIREMENTS FOR EXTENDED ALERTS-
`(A) NOTIFICATION- Each extended alert under this section shall
include information that provides all prospective users of a consumer
report relating to a consumer with--
`(i) notification that the consumer does not authorize the
establishment of any new credit plan or extension of credit described in
clause (i), other than under an open-end credit plan (as defined in
section 103(i)), in the name of the consumer, or issuance of an
additional card on an existing credit account requested by a consumer,
or any increase in credit limit on an existing credit account requested
by a consumer, except in accordance with subparagraph (B);
and
`(ii) a telephone number or other reasonable contact method
designated by the consumer.
`(B) LIMITATION ON USERS- No prospective user of a consumer report or
of a credit score generated using the information in the file of a
consumer that includes an extended fraud alert in accordance with this
section may establish a new credit plan or extension of credit, other than
under an open-end credit plan (as defined in section 103(i)), in the name
of the consumer, or issue an additional card on an existing credit account
requested by a consumer, or any increase in credit limit on an existing
credit account requested by a consumer, unless the user contacts the
consumer in person or using the contact method described in subparagraph
(A)(ii) to confirm that the application for a new credit plan or increase
in credit limit, or request for an additional card is not the result of
identity theft.'.
(b) RULEMAKING- The Commission shall prescribe regulations to define what
constitutes appropriate proof of identity for purposes of sections 605A, 605B,
and 609(a)(1) of the Fair Credit Reporting Act, as amended by this Act.
SEC. 113. TRUNCATION OF CREDIT CARD AND DEBIT CARD ACCOUNT NUMBERS.
Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is amended
by adding at the end the following:
`(g) TRUNCATION OF CREDIT CARD AND DEBIT CARD NUMBERS-
`(1) IN GENERAL- Except as otherwise provided in this subsection, no
person that accepts credit cards or debit cards for the transaction of
business shall print more than the last 5 digits of the card number or the
expiration date upon any receipt provided to the cardholder at the point of
the sale or transaction.
`(2) LIMITATION- This subsection shall apply only to receipts that are
electronically printed, and shall not apply to transactions in which the
sole means of recording a credit card or debit card account number is by
handwriting or by an imprint or copy of the card.
`(3) EFFECTIVE DATE- This subsection shall become effective--
`(A) 3 years after the date of enactment of this subsection, with
respect to any cash register or other machine or device that
electronically prints receipts for credit card or debit card transactions
that is in use before January 1, 2005; and
`(B) 1 year after the date of enactment of this subsection, with
respect to any cash register or other machine or device that
electronically prints receipts for credit card or debit card transactions
that is first put into use on or after January 1, 2005.'.
SEC. 114. ESTABLISHMENT OF PROCEDURES FOR THE IDENTIFICATION OF POSSIBLE
INSTANCES OF IDENTITY THEFT.
Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m) is
amended--
(1) by striking `(e)' at the end; and
(2) by adding at the end the following:
`(e) RED FLAG GUIDELINES AND REGULATIONS REQUIRED-
`(1) GUIDELINES- The Federal banking agencies, the National Credit Union
Administration, and the Commission shall jointly, with respect to the
entities that are subject to their respective enforcement authority under
section 621--
`(A) establish and maintain guidelines for use by each financial
institution and each creditor regarding identity theft with respect to
account holders at, or customers of, such entities, and update such
guidelines as often as necessary;
`(B) prescribe regulations requiring each financial institution and
each creditor to establish reasonable policies and procedures for
implementing the guidelines established pursuant to subparagraph (A), to
identify possible risks to account holders or customers or to the safety
and soundness of the institution or customers; and
`(C) prescribe regulations applicable to card issuers to ensure that,
if a card issuer receives notification of a change of address for an
existing account, and within a short period of time (during at least the
first 30 days after such notification is received) receives a request for
an additional or replacement card for the same account, the card issuer
may not issue the additional or replacement card, unless the card issuer,
in accordance with reasonable policies and procedures--
`(i) notifies the cardholder of the request at the former address of
the cardholder and provides to the cardholder a means of promptly
reporting incorrect address changes;
`(ii) notifies the cardholder of the request by such other means of
communication as the cardholder and the card issuer previously agreed
to; or
`(iii) uses other means of assessing the validity of the change of
address, in accordance with reasonable policies and procedures
established by the card issuer in accordance with the regulations
prescribed under subparagraph (B).
`(A) IN GENERAL- In developing the guidelines required by paragraph
(1)(A), the agencies described in paragraph (1) shall identify patterns,
practices, and specific forms of activity that indicate the possible
existence of identity theft.
`(B) INACTIVE ACCOUNTS- In developing the guidelines required by
paragraph (1)(A), the agencies described in paragraph (1) shall consider
including reasonable guidelines providing that when a transaction occurs
with respect to a credit or deposit account that has been inactive for
more than 2 years, the creditor or financial institution shall follow
reasonable policies and procedures that provide for notice to be given to
a consumer in a manner reasonably designed to reduce the likelihood of
identity theft with respect to such account.
`(3) CONSISTENCY WITH VERIFICATION REQUIREMENTS- Guidelines established
pursuant to paragraph (1) shall not be inconsistent with the policies and
procedures required under section 5318(l) of title 31, United States
Code.'.
SEC. 115. AUTHORITY TO TRUNCATE SOCIAL SECURITY NUMBERS.
Section 609(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681g(a)(1))
is amended by striking `except that nothing' and inserting the following:
`except that--
`(A) if the consumer to whom the file relates requests that the first
5 digits of the social security number (or similar identification number)
of the consumer not be included in the disclosure and the consumer
reporting agency has received appropriate proof of the identity of the
requester, the consumer reporting agency shall so truncate such number in
such disclosure; and
Subtitle B--Protection and Restoration of Identity Theft Victim Credit
History
SEC. 151. SUMMARY OF RIGHTS OF IDENTITY THEFT VICTIMS.
(1) SUMMARY- Section 609 of the Fair Credit Reporting Act (15 U.S.C.
1681g) is amended by adding at the end the following:
`(d) SUMMARY OF RIGHTS OF IDENTITY THEFT VICTIMS-
`(1) IN GENERAL- The Commission, in consultation with the Federal
banking agencies and the National Credit Union Administration, shall prepare
a model summary of the rights of consumers under this title with respect to
the procedures for remedying the effects of fraud or identity theft
involving credit, an electronic fund transfer, or an account or transaction
at or with a financial institution or other creditor.
`(2) SUMMARY OF RIGHTS AND CONTACT INFORMATION- Beginning 60 days after
the date on which the model summary of rights is prescribed in final form by
the Commission pursuant to paragraph (1), if any consumer contacts a
consumer reporting agency and expresses a belief that the consumer is a
victim of fraud or identity theft involving credit, an electronic fund
transfer, or an account or transaction at or with a financial institution or
other creditor, the consumer reporting agency shall, in addition to any
other action that the agency may take, provide the consumer with a summary
of rights that contains all of the information required by the Commission
under paragraph (1), and information on how to contact the Commission to
obtain more detailed information.
`(e) INFORMATION AVAILABLE TO VICTIMS-
`(1) IN GENERAL- For the purpose of documenting fraudulent transactions
resulting from identity theft, not later than 30 days after the date of
receipt of a request from a victim in accordance with paragraph (3), and
subject to verification of the identity of the victim and the claim of
identity theft in accordance with paragraph (2), a business entity that has
provided credit to, provided for consideration products, goods, or services
to, accepted payment from, or otherwise entered into a commercial
transaction for consideration with, a person who has allegedly made
unauthorized use of the means of identification of the victim, shall provide
a copy of application and business transaction records in the control of the
business entity, whether maintained by the business entity or by another
person on behalf of the business entity, evidencing any transaction alleged
to be a result of identity theft to--
`(B) any Federal, State, or local government law enforcement agency or
officer specified by the victim in such a request; or
`(C) any law enforcement agency investigating the identity theft and
authorized by the victim to take receipt of records provided under this
subsection.
`(2) VERIFICATION OF IDENTITY AND CLAIM- Before a business entity
provides any information under paragraph (1), unless the business entity, at
its discretion, otherwise has a high degree of confidence that it knows the
identity of the victim making a request under paragraph (1), the victim
shall provide to the business entity--
`(A) as proof of positive identification of the victim, at the
election of the business entity--
`(i) the presentation of a government-issued identification
card;
`(ii) personally identifying information of the same type as was
provided to the business entity by the unauthorized person;
or
`(iii) personally identifying information that the business entity
typically requests from new applicants or for new transactions, at the
time of the victim's request for information, including any
documentation described in clauses (i) and (ii); and
`(B) as proof of a claim of identity theft, at the election of the
business entity--
`(i) a copy of a police report evidencing the claim of the victim of
identity theft; and
`(ii) a properly completed--
`(I) copy of a standardized affidavit of identity theft developed
and made available by the Commission; or
`(II) an affidavit of fact that is acceptable to the business
entity for that purpose.
`(3) PROCEDURES- The request of a victim under paragraph (1)
shall--
`(B) be mailed to an address specified by the business entity, if any;
and
`(C) if asked by the business entity, include relevant information
about any transaction alleged to be a result of identity theft to
facilitate compliance with this section including--
`(i) if known by the victim (or if readily obtainable by the
victim), the date of the application or transaction; and
`(ii) if known by the victim (or if readily obtainable by the
victim), any other identifying information such as an account or
transaction number.
`(4) NO CHARGE TO VICTIM- Information required to be provided under
paragraph (1) shall be so provided without charge.
`(5) AUTHORITY TO DECLINE TO PROVIDE INFORMATION- A business entity may
decline to provide information under paragraph (1) if, in the exercise of
good faith, the business entity determines that--
`(A) this subsection does not require disclosure of the
information;
`(B) after reviewing the information provided pursuant to paragraph
(2), the business entity does not have a high degree of confidence in
knowing the true identity of the individual requesting the
information;
`(C) the request for the information is based on a misrepresentation
of fact by the individual requesting the information relevant to the
request for information; or
`(D) the information requested is Internet navigational data or
similar information about a person's visit to a website or online
service.
`(6) LIMITATION ON LIABILITY- Except as provided in section 621,
sections 616 and 617 do not apply to any violation of this subsection.
`(7) LIMITATION ON CIVIL LIABILITY- No business entity may be held
civilly liable under any provision of Federal, State, or other law for
disclosure, made in good faith pursuant to this subsection.
`(8) NO NEW RECORDKEEPING OBLIGATION- Nothing in this subsection creates
an obligation on the part of a business entity to obtain, retain, or
maintain information or records that are not otherwise required to be
obtained, retained, or maintained in the ordinary course of its business or
under other applicable law.
`(9) RULE OF CONSTRUCTION-
`(A) IN GENERAL- No provision of subtitle A of title V of Public Law
106-102, prohibiting the disclosure of financial information by a business
entity to third parties shall be used to deny disclosure of information to
the victim under this subsection.
`(B) LIMITATION- Except as provided in subparagraph (A), nothing in
this subsection permits a business entity to disclose information,
including information to law enforcement under subparagraphs (B) and (C)
of paragraph (1), that the business entity is otherwise prohibited from
disclosing under any other applicable provision of Federal or State
law.
`(10) AFFIRMATIVE DEFENSE- In any civil action brought to enforce this
subsection, it is an affirmative defense (which the defendant must establish
by a preponderance of the evidence) for a business entity to file an
affidavit or answer stating that--
`(A) the business entity has made a reasonably diligent search of its
available business records; and
`(B) the records requested under this subsection do not exist or are
not reasonably available.
`(11) DEFINITION OF VICTIM- For purposes of this subsection, the term
`victim' means a consumer whose means of identification or financial
information has been used or transferred (or has been alleged to have been
used or transferred) without the authority of that consumer, with the intent
to commit, or to aid or abet, an identity theft or a similar crime.
`(12) EFFECTIVE DATE- This subsection shall become effective 180 days
after the date of enactment of this subsection.
`(13) EFFECTIVENESS STUDY- Not later than 18 months after the date of
enactment of this subsection, the Comptroller General of the United States
shall submit a report to Congress assessing the effectiveness of this
provision.'.
(2) RELATION TO STATE LAWS- Section 625(b)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681t(b)(1), as so redesignated) is amended by
adding at the end the following new subparagraph:
`(G) section 609(e), relating to information available to victims
under section 609(e);'.
(b) PUBLIC CAMPAIGN TO PREVENT IDENTITY THEFT- Not later than 2 years
after the date of enactment of this Act, the Commission shall establish and
implement a media and distribution campaign to teach the public how to prevent
identity theft. Such campaign shall include existing Commission education
materials, as well as radio, television, and print public service
announcements, video cassettes, interactive digital video discs (DVD's) or
compact audio discs (CD's), and Internet resources.
SEC. 152. BLOCKING OF INFORMATION RESULTING FROM IDENTITY THEFT.
(a) IN GENERAL- The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is
amended by inserting after section 605A, as added by this Act, the
following:
`Sec. 605B. Block of information resulting from identity theft
`(a) BLOCK- Except as otherwise provided in this section, a consumer
reporting agency shall block the reporting of any information in the file of a
consumer that the consumer identifies as information that resulted from an
alleged identity theft, not later than 4 business days after the date of
receipt by such agency of--
`(1) appropriate proof of the identity of the consumer;
`(2) a copy of an identity theft report;
`(3) the identification of such information by the consumer; and
`(4) a statement by the consumer that the information is not information
relating to any transaction by the consumer.
`(b) NOTIFICATION- A consumer reporting agency shall promptly notify the
furnisher of information identified by the consumer under subsection (a)--
`(1) that the information may be a result of identity theft;
`(2) that an identity theft report has been filed;
`(3) that a block has been requested under this section; and
`(4) of the effective dates of the block.
`(c) AUTHORITY TO DECLINE OR RESCIND-
`(1) IN GENERAL- A consumer reporting agency may decline to block, or
may rescind any block, of information relating to a consumer under this
section, if the consumer reporting agency reasonably determines that--
`(A) the information was blocked in error or a block was requested by
the consumer in error;
`(B) the information was blocked, or a block was requested by the
consumer, on the basis of a material misrepresentation of fact by the
consumer relevant to the request to block; or
`(C) the consumer obtained possession of goods, services, or money as
a result of the blocked transaction or transactions.
`(2) NOTIFICATION TO CONSUMER- If a block of information is declined or
rescinded under this subsection, the affected consumer shall be notified
promptly, in the same manner as consumers are notified of the reinsertion of
information under section 611(a)(5)(B).
`(3) SIGNIFICANCE OF BLOCK- For purposes of this subsection, if a
consumer reporting agency rescinds a block, the presence of information in
the file of a consumer prior to the blocking of such information is not
evidence of whether the consumer knew or should have known that the consumer
obtained possession of any goods, services, or money as a result of the
block.
`(d) EXCEPTION FOR RESELLERS-
`(1) NO RESELLER FILE- This section shall not apply to a consumer
reporting agency, if the consumer reporting agency--
`(B) is not, at the time of the request of the consumer under
subsection (a), otherwise furnishing or reselling a consumer report
concerning the information identified by the consumer; and
`(C) informs the consumer, by any means, that the consumer may report
the identity theft to the Commission to obtain consumer information
regarding identity theft.
`(2) RESELLER WITH FILE- The sole obligation of the consumer reporting
agency under this section, with regard to any request of a consumer under
this section, shall be to block the consumer report maintained by the
consumer reporting agency from any subsequent use, if--
`(A) the consumer, in accordance with the provisions of subsection
(a), identifies, to a consumer reporting agency, information in the file
of the consumer that resulted from identity theft; and
`(B) the consumer reporting agency is a reseller of the identified
information.
`(3) NOTICE- In carrying out its obligation under paragraph (2), the
reseller shall promptly provide a notice to the consumer of the decision to
block the file. Such notice shall contain the name, address, and telephone
number of each consumer reporting agency from which the consumer information
was obtained for resale.
`(e) EXCEPTION FOR VERIFICATION COMPANIES- The provisions of this section
do not apply to a check services company, acting as such, which issues
authorizations for the purpose of approving or processing negotiable
instruments, electronic fund transfers, or similar methods of payments, except
that, beginning 4 business days after receipt of information described in
paragraphs (1) through (3) of subsection (a), a check services company shall
not report to a national consumer reporting agency described in section
603(p), any information identified in the subject identity theft report as
resulting from identity theft.
`(f) ACCESS TO BLOCKED INFORMATION BY LAW ENFORCEMENT AGENCIES- No
provision of this section shall be construed as requiring a consumer reporting
agency to prevent a Federal, State, or local law enforcement agency from
accessing blocked information in a consumer file to which the agency could
otherwise obtain access under this title.'.
(b) CLERICAL AMENDMENT- The table of sections for the Fair Credit
Reporting Act (15 U.S.C. 1681 et seq.) is amended by inserting after the item
relating to section 605 the following new items:
`605A. Identity theft prevention; fraud alerts and active duty
alerts.
`605B. Block of information resulting from identity theft.'.
SEC. 153. COORDINATION OF IDENTITY THEFT COMPLAINT INVESTIGATIONS.
Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is amended
by adding at the end the following:
`(f) COORDINATION OF CONSUMER COMPLAINT INVESTIGATIONS-
`(1) IN GENERAL- Each consumer reporting agency described in section
603(p) shall develop and maintain procedures for the referral to each other
such agency of any consumer complaint received by the agency alleging
identity theft, or requesting a fraud alert under section 605A or a block
under section 605B.
`(2) MODEL FORM AND PROCEDURE FOR REPORTING IDENTITY THEFT- The
Commission, in consultation with the Federal banking agencies and the
National Credit Union Administration, shall develop a model form and model
procedures to be used by consumers who are victims of identity theft for
contacting and informing creditors and consumer reporting agencies of the
fraud.
`(3) ANNUAL SUMMARY REPORTS- Each consumer reporting agency described in
section 603(p) shall submit an annual summary report to the Commission on
consumer complaints received by the agency on identity theft or fraud
alerts.'.
SEC. 154. PREVENTION OF REPOLLUTION OF CONSUMER REPORTS.
(a) PREVENTION OF REINSERTION OF ERRONEOUS INFORMATION- Section 623(a) of
the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)) is amended by adding at
the end the following:
`(6) DUTIES OF FURNISHERS UPON NOTICE OF IDENTITY THEFT-RELATED
INFORMATION-
`(A) REASONABLE PROCEDURES- A person that furnishes information to any
consumer reporting agency shall have in place reasonable procedures to
respond to any notification that it receives from a consumer reporting
agency under section 605B relating to information resulting from identity
theft, to prevent that person from refurnishing such blocked
information.
`(B) INFORMATION ALLEGED TO RESULT FROM IDENTITY THEFT- If a consumer
submits an identity theft report to a person who furnishes information to
a consumer reporting agency at the address specified by that person for
receiving such reports stating that information maintained by such person
that purports to relate to the consumer resulted from identity theft, the
person may not furnish such information that purports to relate to the
consumer to any consumer reporting agency, unless the person subsequently
knows or is informed by the consumer that the information is
correct.'.
(b) PROHIBITION ON SALE OR TRANSFER OF DEBT CAUSED BY IDENTITY THEFT-
Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m), as amended by
this Act, is amended by adding at the end the following:
`(f) PROHIBITION ON SALE OR TRANSFER OF DEBT CAUSED BY IDENTITY THEFT-
`(1) IN GENERAL- No person shall sell, transfer for consideration, or
place for collection a debt that such person has been notified under section
605B has resulted from identity theft.
`(2) APPLICABILITY- The prohibitions of this subsection shall apply to
all persons collecting a debt described in paragraph (1) after the date of a
notification under paragraph (1).
`(3) RULE OF CONSTRUCTION- Nothing in this subsection shall be construed
to prohibit--
`(A) the repurchase of a debt in any case in which the assignee of the
debt requires such repurchase because the debt has resulted from identity
theft;
`(B) the securitization of a debt or the pledging of a portfolio of
debt as collateral in connection with a borrowing; or
`(C) the transfer of debt as a result of a merger, acquisition,
purchase and assumption transaction, or transfer of substantially all of
the assets of an entity.'.
SEC. 155. NOTICE BY DEBT COLLECTORS WITH RESPECT TO FRAUDULENT
INFORMATION.
Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m), as amended
by this Act, is amended by adding at the end the following:
`(g) DEBT COLLECTOR COMMUNICATIONS CONCERNING IDENTITY THEFT- If a person
acting as a debt collector (as that term is defined in title VIII) on behalf
of a third party that is a creditor or other user of a consumer report is
notified that any information relating to a debt that the person is attempting
to collect may be fraudulent or may be the result of identity theft, that
person shall--
`(1) notify the third party that the information may be fraudulent or
may be the result of identity theft; and
`(2) upon request of the consumer to whom the debt purportedly relates,
provide to the consumer all information to which the consumer would
otherwise be entitled if the consumer were not a victim of identity theft,
but wished to dispute the debt under provisions of law applicable to that
person.'.
SEC. 156. STATUTE OF LIMITATIONS.
Section 618 of the Fair Credit Reporting Act (15 U.S.C. 1681p) is amended
to read as follows:
`Sec. 618. Jurisdiction of courts; limitation of actions
`An action to enforce any liability created under this title may be
brought in any appropriate United States district court, without regard to the
amount in controversy, or in any other court of competent jurisdiction, not
later than the earlier of--
`(1) 2 years after the date of discovery by the plaintiff of the
violation that is the basis for such liability; or
`(2) 5 years after the date on which the violation that is the basis for
such liability occurs.'.
SEC. 157. STUDY ON THE USE OF TECHNOLOGY TO COMBAT IDENTITY THEFT.
(a) STUDY REQUIRED- The Secretary of the Treasury shall conduct a study of
the use of biometrics and other similar technologies to reduce the incidence
and costs to society of identity theft by providing convincing evidence of who
actually performed a given financial transaction.
(b) CONSULTATION- The Secretary of the Treasury shall consult with Federal
banking agencies, the Commission, and representatives of financial
institutions, consumer reporting agencies, Federal, State, and local
government agencies that issue official forms or means of identification,
State prosecutors, law enforcement agencies, the biometric industry, and the
general public in formulating and conducting the study required by subsection
(a).
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of the Treasury for fiscal year 2004, such sums
as may be necessary to carry out the provisions of this section.
(d) REPORT REQUIRED- Before the end of the 180-day period beginning on the
date of enactment of this Act, the Secretary shall submit a report to Congress
containing the findings and conclusions of the study required under subsection
(a), together with such recommendations for legislative or administrative
actions as may be appropriate.
TITLE II--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT
INFORMATION
SEC. 211. FREE CONSUMER REPORTS.
(a) IN GENERAL- Section 612 of the Fair Credit Reporting Act (15 U.S.C.
1681j) is amended--
(1) by redesignating subsection (a) as subsection (f), and transferring
it to the end of the section;
(2) by inserting before subsection (b) the following:
`(a) FREE ANNUAL DISCLOSURE-
`(1) NATIONWIDE CONSUMER REPORTING AGENCIES-
`(A) IN GENERAL- All consumer reporting agencies described in
subsections (p) and (w) of section 603 shall make all disclosures pursuant
to section 609 once during any 12-month period upon request of the
consumer and without charge to the consumer.
`(B) CENTRALIZED SOURCE- Subparagraph (A) shall apply with respect to
a consumer reporting agency described in section 603(p) only if the
request from the consumer is made using the centralized source established
for such purpose in accordance with section 211(c) of the Fair and
Accurate Credit Transactions Act of 2003.
`(C) NATIONWIDE SPECIALTY CONSUMER REPORTING AGENCY-
`(i) IN GENERAL- The Commission shall prescribe regulations
applicable to each consumer reporting agency described in section 603(w)
to require the establishment of a streamlined process for consumers to
request consumer reports under subparagraph (A), which shall include, at
a minimum, the establishment by each such agency of a toll-free
telephone number for such requests.
`(ii) CONSIDERATIONS- In prescribing regulations under clause (i),
the Commission shall consider--
`(I) the significant demands that may be placed on consumer
reporting agencies in providing such consumer reports;
`(II) appropriate means to ensure that consumer reporting agencies
can satisfactorily meet those demands, including the efficacy of a
system of staggering the availability to consumers of such consumer
reports; and
`(III) the ease by which consumers should be able to contact
consumer reporting agencies with respect to access to such consumer
reports.
`(iii) DATE OF ISSUANCE- The Commission shall issue the regulations
required by this subparagraph in final form not later than 6 months
after the date of enactment of the Fair and Accurate Credit Transactions
Act of 2003.
`(iv) CONSIDERATION OF ABILITY TO COMPLY- The regulations of the
Commission under this subparagraph shall establish an effective date by
which each nationwide specialty consumer reporting agency (as defined in
section 603(w)) shall be required to comply with subsection (a), which
effective date--
`(I) shall be established after consideration of the ability of
each nationwide specialty consumer reporting agency to comply with
subsection (a); and
`(II) shall be not later than 6 months after the date on which
such regulations are issued in final form (or such additional period
not to exceed 3 months, as the Commission determines
appropriate).
`(2) TIMING- A consumer reporting agency shall provide a consumer report
under paragraph (1) not later than 15 days after the date on which the
request is received under paragraph (1).
`(3) REINVESTIGATIONS- Notwithstanding the time periods specified in
section 611(a)(1), a reinvestigation under that section by a consumer
reporting agency upon a request of a consumer that is made after receiving a
consumer report under this subsection shall be completed not later than 45
days after the date on which the request is received.
`(4) EXCEPTION FOR FIRST 12 MONTHS OF OPERATION- This subsection shall
not apply to a consumer reporting agency that has not been furnishing
consumer reports to third parties on a continuing basis during the 12-month
period preceding a request under paragraph (1), with respect to consumers
residing nationwide.';
(3) by redesignating subsection (d) as subsection (e);
(4) by inserting before subsection (e), as redesignated, the
following:
`(d) FREE DISCLOSURES IN CONNECTION WITH FRAUD ALERTS- Upon the request of
a consumer, a consumer reporting agency described in section 603(p) shall make
all disclosures pursuant to section 609 without charge to the consumer, as
provided in subsections (a)(2) and (b)(2) of section 605A, as applicable.';
(5) in subsection (e), as redesignated, by striking `subsection (a)' and
inserting `subsection (f)'; and
(6) in subsection (f), as redesignated, by striking `Except as provided
in subsections (b), (c), and (d), a' and inserting `In the case of a request
from a consumer other than a request that is covered by any of subsections
(a) through (d), a'.
(b) CIRCUMVENTION PROHIBITED- The Fair Credit Reporting Act (15 U.S.C.
1681 et seq.) is amended by adding after section 628, as added by section 216
of this Act, the following new section:
`Sec. 629. Corporate and technological circumvention prohibited
`The Commission shall prescribe regulations, to become effective not later
than 90 days after the date of enactment of this section, to prevent a
consumer reporting agency from circumventing or evading treatment as a
consumer reporting agency described in section 603(p) for purposes of this
title, including--
`(1) by means of a corporate reorganization or restructuring, including
a merger, acquisition, dissolution, divestiture, or asset sale of a consumer
reporting agency; or
`(2) by maintaining or merging public record and credit account
information in a manner that is substantially equivalent to that described
in paragraphs (1) and (2) of section 603(p), in the manner described in
section 603(p).'.
(c) SUMMARY OF RIGHTS TO OBTAIN AN Section 625(b)(1) of the Fair Credit Reporting
Act (15 U.S.C. 1681t(b)(1)), as so designated by section 214 of this Act, is
amended by adding at the end the following:
`(I) section 615(h), relating to the duties of users of consumer
reports to provide notice with respect to terms in certain credit
transactions;'.
SEC. 312. PROCEDURES TO ENHANCE THE ACCURACY AND INTEGRITY OF INFORMATION
FURNISHED TO CONSUMER REPORTING AGENCIES.
(a) ACCURACY GUIDELINES AND REGULATIONS- Section 623 of the Fair Credit
Reporting Act (15 U.S.C. 1681s-2) is amended by adding at the end the
following:
`(e) ACCURACY GUIDELINES AND REGULATIONS REQUIRED-
`(1) GUIDELINES- The Federal banking agencies, the National Credit Union
Administration, and the Commission shall, with respect to the entities that
are subject to their respective enforcement authority under section 621, and
in coordination as described in paragraph (2)--
`(A) establish and maintain guidelines for use by each person that
furnishes information to a consumer reporting agency regarding the
accuracy and integrity of the information relating to consumers that such
entities furnish to consumer reporting agencies, and update such
guidelines as often as necessary; and
`(B) prescribe regulations requiring each person that furnishes
information to a consumer reporting agency to establish reasonable
policies and procedures for implementing the guidelines established
pursuant to subparagraph (A).
`(2) COORDINATION- Each agency required to prescribe regulations under
paragraph (1) shall consult and coordinate with each other such agency so
that, to the extent possible, the regulations prescribed by each such entity
are consistent and comparable with the regulations prescribed by each other
such agency.
`(3) CRITERIA- In developing the guidelines required by paragraph
(1)(A), the agencies described in paragraph (1) shall--
`(A) identify patterns, practices, and specific forms of activity that
can compromise the accuracy and integrity of information furnished to
consumer reporting agencies;
`(B) review the methods (including technological means) used to
furnish information relating to consumers to consumer reporting
agencies;
`(C) determine whether persons that furnish information to consumer
reporting agencies maintain and enforce policies to assure the accuracy
and integrity of information furnished to consumer reporting agencies;
and
`(D) examine the policies and processes that persons that furnish
information to consumer reporting agencies employ to conduct
reinvestigations and correct inaccurate information relating to consumers
that has been furnished to consumer reporting agencies.'.
(b) DUTY OF FURNISHERS TO PROVIDE ACCURATE INFORMATION- Section 623(a)(1)
of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)(1)) is amended--
(1) in subparagraph (A), by striking `knows or consciously avoids
knowing that the information is inaccurate' and inserting `knows or has
reasonable cause to believe that the information is inaccurate'; and
(2) by adding at the end the following:
`(D) DEFINITION- For purposes of subparagraph (A), the term
`reasonable cause to believe that the information is inaccurate' means
having specific knowledge, other than solely allegations by the consumer,
that would cause a reasonable person to have substantial doubts about the
accuracy of the information.'.
(c) ABILITY OF CONSUMER TO DISPUTE INFORMATION DIRECTLY WITH FURNISHER-
Section 623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)), as
amended by this Act, is amended by adding at the end the following:
`(8) ABILITY OF CONSUMER TO DISPUTE INFORMATION DIRECTLY WITH
FURNISHER-
`(A) IN GENERAL- The Federal banking agencies, the National Credit
Union Administration, and the Commission shall jointly prescribe
regulations that shall identify the circumstances under which a furnisher
shall be required to reinvestigate a dispute concerning the accuracy of
information contained in a consumer report on the consumer, based on a
direct request of a consumer.
`(B) CONSIDERATIONS- In prescribing regulations under subparagraph
(A), the agencies shall weigh--
`(i) the benefits to consumers with the costs on furnishers and the
credit reporting system;
`(ii) the impact on the overall accuracy and integrity of consumer
reports of any such requirements;
`(iii) whether direct contact by the consumer with the furnisher
would likely result in the most expeditious resolution of any such
dispute; and
`(iv) the potential impact on the credit reporting process if credit
repair organizations, as defined in section 403(3), including entities
that would be a credit repair organization, but for section
403(3)(B)(i), are able to circumvent the prohibition in subparagraph
(G).
`(C) APPLICABILITY- Subparagraphs (D) through (G) shall apply in any
circumstance identified under the regulations promulgated under
subparagraph (A).
`(D) SUBMITTING A NOTICE OF DISPUTE- A consumer who seeks to dispute
the accuracy of information shall provide a dispute notice directly to
such person at the address specified by the person for such notices
that--
`(i) identifies the specific information that is being
disputed;
`(ii) explains the basis for the dispute; and
`(iii) includes all supporting documentation required by the
furnisher to substantiate the basis of the dispute.
`(E) DUTY OF PERSON AFTER RECEIVING NOTICE OF DISPUTE- After receiving
a notice of dispute from a consumer pursuant to subparagraph (D), the
person that provided the information in dispute to a consumer reporting
agency shall--
`(i) conduct an investigation with respect to the disputed
information;
`(ii) review all relevant information provided by the consumer with
the notice;
`(iii) complete such person's investigation of the dispute and
report the results of the investigation to the consumer before the
expiration of the period under section 611(a)(1) within which a consumer
reporting agency would be required to complete its action if the
consumer had elected to dispute the information under that section;
and
`(iv) if the investigation finds that the information reported was
inaccurate, promptly notify each consumer reporting agency to which the
person furnished the inaccurate information of that determination and
provide to the agency any correction to that information that is
necessary to make the information provided by the person
accurate.
`(F) FRIVOLOUS OR IRRELEVANT DISPUTE-
`(i) IN GENERAL- This paragraph shall not apply if the person
receiving a notice of a dispute from a consumer reasonably determines
that the dispute is frivolous or irrelevant, including--
`(I) by reason of the failure of a consumer to provide sufficient
information to investigate the disputed information; or
`(II) the submission by a consumer of a dispute that is
substantially the same as a dispute previously submitted by or for the
consumer, either directly to the person or through a consumer
reporting agency under subsection (b), with respect to which the
person has already performed the person's duties under this paragraph
or subsection (b), as applicable.
`(ii) NOTICE OF DETERMINATION- Upon making any determination under
clause (i) that a dispute is frivolous or irrelevant, the person shall
notify the consumer of such determination not later than 5 business days
after making such determination, by mail or, if authorized by the
consumer for that purpose, by any other means available to the
person.
`(iii) CONTENTS OF NOTICE- A notice under clause (ii) shall
include--
`(I) the reasons for the determination under clause (i);
and
`(II) identification of any information required to investigate
the disputed information, which may consist of a standardized form
describing the general nature of such information.
`(G) EXCLUSION OF CREDIT REPAIR ORGANIZATIONS- This paragraph shall
not apply if the notice of the dispute is submitted by, is prepared on
behalf of the consumer by, or is submitted on a form supplied to the
consumer by, a credit repair organization, as defined in section 403(3),
or an entity that would be a credit repair organization, but for section
403(3)(B)(i).'.
(d) FURNISHER LIABILITY EXCEPTION- Section 623(a)(5) of the Fair Credit
Reporting Act (15 U.S.C. 1681s-2(a)(5)) is amended--
(1) by striking `A person' and inserting the following:
`(A) IN GENERAL- A person';
(2) by inserting `date of delinquency on the account, which shall be
the' before `month';
(3) by inserting `on the account' before `that immediately preceded';
and
(4) by adding at the end the following:
`(B) RULE OF CONSTRUCTION- For purposes of this paragraph only, and
provided that the consumer does not dispute the information, a person that
furnishes information on a delinquent account that is placed for
collection, charged for profit or loss, or subjected to any similar
action, complies with this paragraph, if--
`(i) the person reports the same date of delinquency as that
provided by the creditor to which the account was owed at the time at
which the commencement of the delinquency occurred, if the creditor
previously reported that date of delinquency to a consumer reporting
agency;
`(ii) the creditor did not previously report the date of delinquency
to a consumer reporting agency, and the person establishes and follows
reasonable procedures to obtain the date of delinquency from the
creditor or another reliable source and reports that date to a consumer
reporting agency as the date of delinquency; or
`(iii) the creditor did not previously report the date of
delinquency to a consumer reporting agency and the date of delinquency
cannot be reasonably obtained as provided in clause (ii), the person
establishes and follows reasonable procedures to ensure the date
reported as the date of delinquency precedes the date on which the
account is placed for collection, charged to profit or loss, or
subjected to any similar action, and reports such date to the credit
reporting agency.'.
(e) LIABILITY AND ENFORCEMENT-
(1) CIVIL LIABILITY- Section 623 of the Fair Credit Reporting Act (15
U.S.C. 1681s-2) is amended by striking subsections (c) and (d) and inserting
the following:
`(c) LIMITATION ON LIABILITY- Except as provided in section 621(c)(1)(B),
sections 616 and 617 do not apply to any violation of--
`(1) subsection (a) of this section, including any regulations issued
thereunder;
`(2) subsection (e) of this section, except that nothing in this
paragraph shall limit, expand, or otherwise affect liability under section
616 or 617, as applicable, for violations of subsection (b) of this section;
or
`(3) subsection (e) of section 615.
`(d) LIMITATION ON ENFORCEMENT- The provisions of law described in
paragraphs (1) through (3) of subsection (c) (other than with respect to the
exception described in paragraph (2) of subsection (c)) shall be enforced
exclusively as provided under section 621 by the Federal agencies and
officials and the State officials identified in section 621.'.
(2) STATE ACTIONS- Section 621(c) of the Fair Credit Reporting Act (15
U.S.C. 1681s(c)) is amended--
(A) in paragraph (1)(B)(ii), by striking `of section 623(a)' and
inserting `described in any of paragraphs (1) through (3) of section
623(c)'; and
(i) in each of subparagraphs (A) and (B), by striking `of section
623(a)(1)' each place that term appears and inserting `described in any
of paragraphs (1) through (3) of section 623(c)'; and
(ii) by amending the paragraph heading to read as
follows:
`(5) LIMITATIONS ON STATE ACTIONS FOR CERTAIN VIOLATIONS- '.
(f) RULE OF CONSTRUCTION- Nothing in this section, the amendments made by
this section, or any other provision of this Act shall be construed to affect
any liability under section 616 or 617 of the Fair Credit Reporting Act (15
U.S.C. 1681n, 1681o) that existed on the day before the date of enactment of
this Act.
SEC. 313. FTC AND CONSUMER REPORTING AGENCY ACTION CONCERNING
COMPLAINTS.
(a) IN GENERAL- Section 611 of the Fair Credit Reporting Act (15 U.S.C.
1681i) is amended by adding at the end the following:
`(e) TREATMENT OF COMPLAINTS AND REPORT TO CONGRESS-
`(1) IN GENERAL- The Commission shall--
`(A) compile all complaints that it receives that a file of a consumer
that is maintained by a consumer reporting agency described in section
603(p) contains incomplete or inaccurate information, with respect to
which, the consumer appears to have disputed the completeness or accuracy
with the consumer reporting agency or otherwise utilized the procedures
provided by subsection (a); and
`(B) transmit each such complaint to each consumer reporting agency
involved.
`(2) EXCLUSION- Complaints received or obtained by the Commission
pursuant to its investigative authority under the Federal Trade Commission
Act shall not be subject to paragraph (1).
`(3) AGENCY RESPONSIBILITIES- Each consumer reporting agency described
in section 603(p) that receives a complaint transmitted by the Commission
pursuant to paragraph (1) shall--
`(A) review each such complaint to determine whether all legal
obligations imposed on the consumer reporting agency under this title
(including any obligation imposed by an applicable court or administrative
order) have been met with respect to the subject matter of the
complaint;
`(B) provide reports on a regular basis to the Commission regarding
the determinations of and actions taken by the consumer reporting agency,
if any, in connection with its review of such complaints; and
`(C) maintain, for a reasonable time period, records regarding the
disposition of each such complaint that is sufficient to demonstrate
compliance with this subsection.
`(4) RULEMAKING AUTHORITY- The Commission may prescribe regulations, as
appropriate to implement this subsection.
`(5) ANNUAL REPORT- The Commission shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives an annual report
regarding information gathered by the Commission under this
subsection.'.
(b) PROMPT INVESTIGATION OF DISPUTED CONSUMER INFORMATION-
(1) STUDY REQUIRED- The Board and the Commission shall jointly study the
extent to which, and the manner in which, consumer reporting agencies and
furnishers of consumer information to consumer reporting agencies are
complying with the procedures, time lines, and requirements under the Fair
Credit Reporting Act for the prompt investigation of the disputed accuracy
of any consumer information, the completeness of the information provided to
consumer reporting agencies, and the prompt correction or deletion, in
accordance with such Act, of any inaccurate or incomplete information or
information that cannot be verified.
(2) REPORT REQUIRED- Before the end of the 12-month period beginning on
the date of enactment of this Act, the Board and the Commission shall
jointly submit a progress report to the Congress on the results of the study
required under paragraph (1).
(3) CONSIDERATIONS- In preparing the report required under paragraph
(2), the Board and the Commission shall consider information relating to
complaints compiled by the Commission under section 611(e) of the Fair
Credit Reporting Act, as added by this section.
(4) RECOMMENDATIONS- The report required under paragraph (2) shall
include such recommendations as the Board and the Commission jointly
determine to be appropriate for legislative or administrative action, to
ensure that--
(A) consumer disputes with consumer reporting agencies over the
accuracy or completeness of information in a consumer's file are promptly
and fully investigated and any incorrect, incomplete, or unverifiable
information is corrected or deleted immediately thereafter;
(B) furnishers of information to consumer reporting agencies maintain
full and prompt compliance with the duties and responsibilities
established under section 623 of the Fair Credit Reporting Act;
and
(C) consumer reporting agencies establish and maintain appropriate
internal controls and management review procedures for maintaining full
and continuous compliance with the procedures, time lines, and
requirements under the Fair Credit Reporting Act for the prompt
investigation of the disputed accuracy of any consumer information and the
prompt correction or deletion, in accordance with such Act, of any
inaccurate or incomplete information or information that cannot be
verified.
SEC. 314. IMPROVED DISCLOSURE OF THE RESULTS OF REINVESTIGATION.
(a) IN GENERAL- Section 611(a)(5)(A) of the Fair Credit Reporting Act (15
U.S.C. 1681i(a)(5)(A)) is amended by striking `shall' and all that follows
through the end of the subparagraph, and inserting the following: `shall--
`(i) promptly delete that item of information from the file of the
consumer, or modify that item of information, as appropriate, based on
the results of the reinvestigation; and
`(ii) promptly notify the furnisher of that information that the
information has been modified or deleted from the file of the
consumer.'.
(b) FURNISHER REQUIREMENTS RELATING TO INACCURATE, INCOMPLETE, OR
UNVERIFIABLE INFORMATION- Section 623(b)(1) of the Fair Credit Reporting Act
(15 U.S.C. 1681s-2(b)(1)) is amended--
(1) in subparagraph (C), by striking `and' at the end; and
(2) in subparagraph (D), by striking the period at the end and inserting
the following: `; and
`(E) if an item of information disputed by a consumer is found to be
inaccurate or incomplete or cannot be verified after any reinvestigation
under paragraph (1), for purposes of reporting to a consumer reporting
agency only, as appropriate, based on the results of the reinvestigation
promptly--
`(i) modify that item of information;
`(ii) delete that item of information; or
`(iii) permanently block the reporting of that item of
information.'.
SEC. 315. RECONCILING ADDRESSES.
Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c), as amended
by this Act, is amended by adding at the end the following:
`(h) NOTICE OF DISCREPANCY IN ADDRESS-
`(1) IN GENERAL- If a person has requested a consumer report relating to
a consumer from a consumer reporting agency described in section 603(p), the
request includes an address for the consumer that substantially differs from
the addresses in the file of the consumer, and the agency provides a
consumer report in response to the request, the consumer reporting agency
shall notify the requester of the existence of the discrepancy.
`(A) REGULATIONS REQUIRED- The Federal banking agencies, the National
Credit Union Administration, and the Commission shall jointly, with
respect to the entities that are subject to their respective enforcement
authority under section 621, prescribe regulations providing guidance
regarding reasonable policies and procedures that a user of a consumer
report should employ when such user has received a notice of discrepancy
under paragraph (1).
`(B) POLICIES AND PROCEDURES TO BE INCLUDED- The regulations
prescribed under subparagraph (A) shall describe reasonable policies and
procedures for use by a user of a consumer report--
`(i) to form a reasonable belief that the user knows the identity of
the person to whom the consumer report pertains; and
`(ii) if the user establishes a continuing relationship with the
consumer, and the user regularly and in the ordinary course of business
furnishes information to the consumer reporting agency from which the
notice of discrepancy pertaining to the consumer was obtained, to
reconcile the address of the consumer with the consumer reporting agency
by furnishing such address to such consumer reporting agency as part of
information regularly furnished by the user for the period in which the
relationship is established.'.
SEC. 316. NOTICE OF DISPUTE THROUGH RESELLER.
(a) REQUIREMENT FOR REINVESTIGATION OF DISPUTED INFORMATION UPON NOTICE
FROM A RESELLER- Section 611(a) of the Fair Credit Reporting Act (15 U.S.C.
1681i(a)(1)(A)) is amended--
(1) in paragraph (1)(A)--
(A) by striking `If the completeness' and inserting `Subject to
subsection (f), if the completeness';
(B) by inserting `, or indirectly through a reseller,' after `notifies
the agency directly'; and
(C) by inserting `or reseller' before the period at the end;
(2) in paragraph (2)(A)--
(A) by inserting `or a reseller' after `dispute from any consumer';
and
(B) by inserting `or reseller' before the period at the end;
and
(3) in paragraph (2)(B), by inserting `or the reseller' after `from the
consumer'.
(b) REINVESTIGATION REQUIREMENT APPLICABLE TO RESELLERS- Section 611 of
the Fair Credit Reporting Act (15 U.S.C. 1681i), as amended by this Act, is
amended by adding at the end the following:
`(f) REINVESTIGATION REQUIREMENT APPLICABLE TO RESELLERS-
`(1) EXEMPTION FROM GENERAL REINVESTIGATION REQUIREMENT- Except as
provided in paragraph (2), a reseller shall be exempt from the requirements
of this section.
`(2) ACTION REQUIRED UPON RECEIVING NOTICE OF A DISPUTE- If a reseller
receives a notice from a consumer of a dispute concerning the completeness
or accuracy of any item of information contained in a consumer report on
such consumer produced by the reseller, the reseller shall, within 5
business days of receiving the notice, and free of charge--
`(A) determine whether the item of information is incomplete or
inaccurate as a result of an act or omission of the reseller; and
`(i) the reseller determines that the item of information is
incomplete or inaccurate as a result of an act or omission of the
reseller, not later than 20 days after receiving the notice, correct the
information in the consumer report or delete it; or
`(ii) if the reseller determines that the item of information is not
incomplete or inaccurate as a result of an act or omission of the
reseller, convey the notice of the dispute, together with all relevant
information provided by the consumer, to each consumer reporting agency
that provided the reseller with the information that is the subject of
the dispute, using an address or a notification mechanism specified by
the consumer reporting agency for such notices.
`(3) RESPONSIBILITY OF CONSUMER REPORTING AGENCY TO NOTIFY CONSUMER
THROUGH RESELLER- Upon the completion of a reinvestigation under this
section of a dispute concerning the completeness or accuracy of any
information in the file of a consumer by a consumer reporting agency that
received notice of the dispute from a reseller under paragraph (2)--
`(A) the notice by the consumer reporting agency under paragraph (6),
(7), or (8) of subsection (a) shall be provided to the reseller in lieu of
the consumer; and
`(B) the reseller shall immediately reconvey such notice to the
consumer, including any notice of a deletion by telephone in the manner
required under paragraph (8)(A).
`(4) RESELLER REINVESTIGATIONS- No provision of this subsection shall be
construed as prohibiting a reseller from conducting a reinvestigation of a
consumer dispute directly.'.
(c) TECHNICAL AND CONFORMING AMENDMENT- Section 611(a)(2)(B) of the Fair
Credit Reporting Act (15 U.S.C. 1681i(a)(2)(B)) is amended in the subparagraph
heading, by striking `FROM CONSUMER'.
SEC. 317. REASONABLE REINVESTIGATION REQUIRED.
Section 611(a)(1)(A) of the Fair Credit Reporting Act (15 U.S.C.
1681i(a)(1)(A)) is amended by striking `shall reinvestigate free of charge'
and inserting `shall, free of charge, conduct a reasonable reinvestigation to
determine whether the disputed information is inaccurate'.
SEC. 318. FTC STUDY OF ISSUES RELATING TO THE FAIR CREDIT REPORTING
ACT.
(1) IN GENERAL- The Commission shall conduct a study on ways to improve
the operation of the Fair Credit Reporting Act.
(2) AREAS FOR STUDY- In conducting the study under paragraph (1), the
Commission shall review--
(A) the efficacy of increasing the number of points of identifying
information that a credit reporting agency is required to match to ensure
that a consumer is the correct individual to whom a consumer report
relates before releasing a consumer report to a user, including--
(i) the extent to which requiring additional points of such
identifying information to match would--
(I) enhance the accuracy of credit reports; and
(II) combat the provision of incorrect consumer reports to
users;
(ii) the extent to which requiring an exact match of the first and
last name, social security number, and address and ZIP Code of the
consumer would enhance the likelihood of increasing credit report
accuracy; and
(iii) the effects of allowing consumer reporting agencies to use
partial matches of social security numbers and name recognition software
on the accuracy of credit reports;
(B) requiring notification to consumers when negative information has
been added to their credit reports, including--
(i) the potential impact of such notification on the ability of
consumers to identify errors on their credit reports; and
(ii) the potential impact of such notification on the ability of
consumers to remove fraudulent information from their credit
reports;
(C) the effects of requiring that a consumer who has experienced an
adverse action based on a credit report receives a copy of the same credit
report that the creditor relied on in taking the adverse action,
including--
(i) the extent to which providing such reports to consumers would
increase the ability of consumers to identify errors in their credit
reports; and
(ii) the extent to which providing such reports to consumers would
increase the ability of consumers to remove fraudulent information from
their credit reports;
(D) any common financial transactions that are not generally reported
to the consumer reporting agencies, but would provide useful information
in determining the credit worthiness of consumers; and
(E) any actions that might be taken within a voluntary reporting
system to encourage the reporting of the types of transactions described
in subparagraph (D).
(3) COSTS AND BENEFITS- With respect to each area of study described in
paragraph (2), the Commission shall consider the extent to which such
requirements would benefit consumers, balanced against the cost of
implementing such provisions.
(b) REPORT REQUIRED- Not later than 1 year after the date of enactment of
this Act, the chairman of the Commission shall submit a report to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives containing a
detailed summary of the findings and conclusions of the study under this
section, together with such recommendations for legislative or administrative
actions as may be appropriate.
SEC. 319. FTC STUDY OF THE ACCURACY OF CONSUMER REPORTS.
(a) STUDY REQUIRED- Until the final report is submitted under subsection
(b)(2), the Commission shall conduct an ongoing study of the accuracy and
completeness of information contained in consumer reports prepared or
maintained by consumer reporting agencies and methods for improving the
accuracy and completeness of such information.
(b) BIENNIAL REPORTS REQUIRED-
(1) INTERIM REPORTS- The Commission shall submit an interim report to
the Congress on the study conducted under subsection (a) at the end of the
1-year period beginning on the date of enactment of this Act and biennially
thereafter for 8 years.
(2) FINAL REPORT- The Commission shall submit a final report to the
Congress on the study conducted under subsection (a) at the end of the
2-year period beginning on the date on which the final interim report is
submitted to the Congress under paragraph (1).
(3) CONTENTS- Each report submitted under this subsection shall contain
a detailed summary of the findings and conclusions of the Commission with
respect to the study required under subsection (a) and such recommendations
for legislative and administrative action as the Commission may determine to
be appropriate.
TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE
FINANCIAL SYSTEM
SEC. 411. PROTECTION OF MEDICAL INFORMATION IN THE FINANCIAL SYSTEM.
(a) IN GENERAL- Section 604(g) of the Fair Credit Reporting Act (15 U.S.C.
1681b(g)) is amended to read as follows:
`(g) PROTECTION OF MEDICAL INFORMATION-
`(1) LIMITATION ON CONSUMER REPORTING AGENCIES- A consumer reporting
agency shall not furnish for employment purposes, or in connection with a
credit or insurance transaction, a consumer report that contains medical
information about a consumer, unless--
`(A) if furnished in connection with an insurance transaction, the
consumer affirmatively consents to the furnishing of the report;
`(B) if furnished for employment purposes or in connection with a
credit transaction--
`(i) the information to be furnished is relevant to process or
effect the employment or credit transaction; and
`(ii) the consumer provides specific written consent for the
furnishing of the report that describes in clear and conspicuous
language the use for which the information will be furnished;
or
`(C) the information to be furnished pertains solely to transactions,
accounts, or balances relating to debts arising from the receipt of
medical services, products, or devises, where such information, other than
account status or amounts, is restricted or reported using codes that do
not identify, or do not provide information sufficient to infer, the
specific provider or the nature of such services, products, or devices, as
provided in section 605(a)(6).
`(2) LIMITATION ON CREDITORS- Except as permitted pursuant to paragraph
(3)(C) or regulations prescribed under paragraph (5)(A), a creditor shall
not obtain or use medical information pertaining to a consumer in connection
with any determination of the consumer's eligibility, or continued
eligibility, for credit.
`(3) ACTIONS AUTHORIZED BY FEDERAL LAW, INSURANCE ACTIVITIES AND
REGULATORY DETERMINATIONS- Section 603(d)(3) shall not be construed so as to
treat information or any communication of information as a consumer report
if the information or communication is disclosed--
`(A) in connection with the business of insurance or annuities,
including the activities described in section 18B of the model Privacy of
Consumer Financial and Health Information Regulation issued by the
National Association of Insurance Commissioners (as in effect on January
1, 2003);
`(B) for any purpose permitted without authorization under the
Standards for Individually Identifiable Health Information promulgated by
the Department of Health and Human Services pursuant to the Health
Insurance Portability and Accountability Act of 1996, or referred to under
section 1179 of such Act, or described in section 502(e) of Public Law
106-102; or
`(C) as otherwise determined to be necessary and appropriate, by
regulation or order and subject to paragraph (6), by the Commission, any
Federal banking agency or the National Credit Union Administration (with
respect to any financial institution subject to the jurisdiction of such
agency or Administration under paragraph (1), (2), or (3) of section
621(b), or the applicable State insurance authority (with respect to any
person engaged in providing insurance or annuities).
`(4) LIMITATION ON REDISCLOSURE OF MEDICAL INFORMATION- Any person that
receives medical information pursuant to paragraph (1) or (3) shall not
disclose such information to any other person, except as necessary to carry
out the purpose for which the information was initially disclosed, or as
otherwise permitted by statute, regulation, or order.
`(5) REGULATIONS AND EFFECTIVE DATE FOR PARAGRAPH (2)-
`(A) REGULATIONS REQUIRED- Each Federal banking agency and the
National Credit Union Administration shall, subject to paragraph (6) and
after notice and opportunity for comment, prescribe regulations that
permit transactions under paragraph (2) that are determined to be
necessary and appropriate to protect legitimate operational,
transactional, risk, consumer, and other needs (and which shall include
permitting actions necessary for administrative verification purposes),
consistent with the intent of paragraph (2) to restrict the use of medical
information for inappropriate purposes.
`(B) FINAL REGULATIONS REQUIRED- The Federal banking agencies and the
National Credit Union Administration shall issue the regulations required
under subparagraph (A) in final form before the end of the 6-month period
beginning on the date of enactment of the Fair and Accurate Credit
Transactions Act of 2003.
`(6) COORDINATION WITH OTHER LAWS- No provision of this subsection shall
be construed as altering, affecting, or superseding the applicability of any
other provision of Federal law relating to medical confidentiality.'.
(b) RESTRICTION ON SHARING OF MEDICAL INFORMATION- Section 603(d) of the
Fair Credit Reporting Act (15 U.S.C. 1681a(d)) is amended--
(1) in paragraph (2), by striking `The term' and inserting `Except as
provided in paragraph (3), the term'; and
(2) by adding at the end the following new paragraph:
`(3) RESTRICTION ON SHARING OF MEDICAL INFORMATION- Except for
information or any communication of information disclosed as provided in
section 604(g)(3), the exclusions in paragraph (2) shall not apply with
respect to information disclosed to any person related by common ownership
or affiliated by corporate control, if the information is--
`(A) medical information;
`(B) an individualized list or description based on the payment
transactions of the consumer for medical products or services; or
`(C) an aggregate list of identified consumers based on payment
transactions for medical products or services.'.
(c) DEFINITION- Section 603(i) of the Fair Credit Reporting Act (15 U.S.C.
1681a(i)) is amended to read as follows:
`(i) MEDICAL INFORMATION- The term `medical information'--
`(1) means information or data, whether oral or recorded, in any form or
medium, created by or derived from a health care provider or the consumer,
that relates to--
`(A) the past, present, or future physical, mental, or behavioral
health or condition of an individual;
`(B) the provision of health care to an individual; or
`(C) the payment for the provision of health care to an
individual.
`(2) does not include the age or gender of a consumer, demographic
information about the consumer, including a consumer's residence address or
e-mail address, or any other information about a consumer that does not
relate to the physical, mental, or behavioral health or condition of a
consumer, including the existence or value of any insurance policy.'.
(d) EFFECTIVE DATES- This section shall take effect at the end of the
180-day period beginning on the date of enactment of this Act, except that
paragraph (2) of section 604(g) of the Fair Credit Reporting Act (as amended
by subsection (a) of this section) shall take effect on the later of--
(1) the end of the 90-day period beginning on the date on which the
regulations required under paragraph (5)(B) of such section 604(g) are
issued in final form; or
(2) the date specified in the regulations referred to in paragraph
(1).
SEC. 412. CONFIDENTIALITY OF MEDICAL CONTACT INFORMATION IN CONSUMER
REPORTS.
(a) DUTIES OF MEDICAL INFORMATION FURNISHERS- Section 623(a) of the Fair
Credit Reporting Act (15 U.S.C. 1681s-2(a)), as amended by this Act, is
amended by adding at the end the following:
`(9) DUTY TO PROVIDE NOTICE OF STATUS AS MEDICAL INFORMATION FURNISHER-
A person whose primary business is providing medical services, products, or
devices, or the person's agent or assignee, who furnishes information to a
consumer reporting agency on a consumer shall be considered a medical
information furnisher for purposes of this title, and shall notify the
agency of such status.'.
(b) RESTRICTION OF DISSEMINATION OF MEDICAL CONTACT INFORMATION- Section
605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)) is amended by
adding at the end the following:
`(6) The name, address, and telephone number of any medical information
furnisher that has notified the agency of its status, unless--
`(A) such name, address, and telephone number are restricted or
reported using codes that do not identify, or provide information
sufficient to infer, the specific provider or the nature of such services,
products, or devices to a person other than the consumer; or
`(B) the report is being provided to an insurance company for a
purpose relating to engaging in the business of insurance other than
property and casualty insurance.'.
(c) NO EXCEPTIONS ALLOWED FOR DOLLAR AMOUNTS- Section 605(b) of the Fair
Credit Reporting Act (15 U.S.C. 1681c(b)) is amended by striking `The
provisions of subsection (a)' and inserting `The provisions of paragraphs (1)
through (5) of subsection (a)'.
(d) COORDINATION WITH OTHER LAWS- No provision of any amendment made by
this section shall be construed as altering, affecting, or superseding the
applicability of any other provision of Federal law relating to medical
confidentiality.
(e) FTC REGULATION OF CODING OF TRADE NAMES- Section 621 of the Fair
Credit Reporting Act (15 U.S.C. 1681s), as amended by this Act, is amended by
adding at the end the following:
`(g) FTC REGULATION OF CODING OF TRADE NAMES- If the Commission determines
that a person described in paragraph (9) of section 623(a) has not met the
requirements of such paragraph, the Commission shall take action to ensure the
person's compliance with such paragraph, which may include issuing model
guidance or prescribing reasonable policies and procedures, as necessary to
ensure that such person complies with such paragraph.'.
(f) TECHNICAL AND CONFORMING AMENDMENTS- Section 604(g) of the Fair Credit
Reporting Act (15 U.S.C. 1681b(g)), as amended by section 411 of this Act, is
amended--
(1) in paragraph (1), by inserting `(other than medical contact
information treated in the manner required under section 605(a)(6))' after
`a consumer report that contains medical information'; and
(2) in paragraph (2), by inserting `(other than medical information
treated in the manner required under section 605(a)(6))' after `a creditor
shall not obtain or use medical information'.
(g) EFFECTIVE DATE- The amendments made by this section shall take effect
at the end of the 15-month period beginning on the date of enactment of this
Act.
TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT
SEC. 511. SHORT TITLE.
This title may be cited as the `Financial Literacy and Education
Improvement Act'.
SEC. 512. DEFINITIONS.
(1) the term `Chairperson' means the Chairperson of the Financial
Literacy and Education Commission; and
(2) the term `Commission' means the Financial Literacy and Education
Commission established under section 513.
SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION COMMISSION.
(a) IN GENERAL- There is established a commission to be known as the
`Financial Literacy and Education Commission'.
(b) PURPOSE- The Commission shall serve to improve the financial literacy
and education of persons in the United States through development of a
national strategy to promote financial literacy and education.
(1) COMPOSITION- The Commission shall be composed of--
(A) the Secretary of the Treasury;
(B) the respective head of each of the Federal banking agencies (as
defined in section 3 of the Federal Deposit Insurance Act), the National
Credit Union Administration, the Securities and Exchange Commission, each
of the Departments of Education, Agriculture, Defense, Health and Human
Services, Housing and Urban Development, Labor, and Veterans Affairs, the
Federal Trade Commission, the General Services Administration, the Small
Business Administration, the Social Security Administration, the Commodity
Futures Trading Commission, and the Office of Personnel Management;
and
(C) at the discretion of the President, not more than 5 individuals
appointed by the President from among the administrative heads of any
other Federal agencies, departments, or other Federal Government entities,
whom the President determines to be engaged in a serious effort to improve
financial literacy and education.
(2) ALTERNATES- Each member of the Commission may designate an alternate
if the member is unable to attend a meeting of the Commission. Such
alternate shall be an individual who exercises significant decisionmaking
authority.
(d) CHAIRPERSON- The Secretary of the Treasury shall serve as the
Chairperson.
(e) MEETINGS- The Commission shall hold, at the call of the Chairperson,
at least 1 meeting every 4 months. All such meetings shall be open to the
public. The Commission may hold, at the call of the Chairperson, such other
meetings as the Chairperson sees fit to carry out this title.
(f) QUORUM- A majority of the members of the Commission shall constitute a
quorum, but a lesser number of members may hold hearings.
(g) INITIAL MEETING- The Commission shall hold its first meeting not later
than 60 days after the date of enactment of this Act.
SEC. 514. DUTIES OF THE COMMISSION.
(1) IN GENERAL- The Commission, through the authority of the members
referred to in section 513(c), shall take such actions as it deems necessary
to streamline, improve, or augment the financial literacy and education
programs, grants, and materials of the Federal Government, including
curricula for all Americans.
(2) AREAS OF EMPHASIS- To improve financial literacy and education, the
Commission shall emphasize, among other elements, basic personal income and
household money management and planning skills, including how to--
(A) create household budgets, initiate savings plans, and make
strategic investment decisions for education, retirement, home ownership,
wealth building, or other savings goals;
(B) manage spending, credit, and debt, including credit card debt,
effectively;
(C) increase awareness of the availability and significance of credit
reports and credit scores in obtaining credit, the importance of their
accuracy (and how to correct inaccuracies), their effect on credit terms,
and the effect common financial decisions may have on credit
scores;
(D) ascertain fair and favorable credit terms;
(E) avoid abusive, predatory, or deceptive credit offers and financial
products;
(F) understand, evaluate, and compare financial products, services,
and opportunities;
(G) understand resources that ought to be easily accessible and
affordable, and that inform and educate investors as to their rights and
avenues of recourse when an investor believes his or her rights have been
violated by unprofessional conduct of market intermediaries;
(H) increase awareness of the particular financial needs and financial
transactions (such as the sending of remittances) of consumers who are
targeted in multilingual financial literacy and education programs and
improve the development and distribution of multilingual financial
literacy and education materials;
(I) promote bringing individuals who lack basic banking services into
the financial mainstream by opening and maintaining an account with a
financial institution; and
(J) improve financial literacy and education through all other related
skills, including personal finance and related economic education, with
the primary goal of programs not simply to improve knowledge, but rather
to improve consumers' financial choices and outcomes.
(1) IN GENERAL- The Commission shall establish and maintain a website,
such as the domain name `FinancialLiteracy.gov', or a similar domain
name.
(2) PURPOSES- The website established under paragraph (1) shall--
(A) serve as a clearinghouse of information about Federal financial
literacy and education programs;
(B) provide a coordinated entry point for accessing information about
all Federal publications, grants, and materials promoting enhanced
financial literacy and education;
(C) offer information on all Federal grants to promote financial
literacy and education, and on how to target, apply for, and receive a
grant that is most appropriate under the circumstances;
(D) as the Commission considers appropriate, feature website links to
efforts that have no commercial content and that feature information about
financial literacy and education programs, materials, or campaigns;
and
(E) offer such other information as the Commission finds appropriate
to share with the public in the fulfillment of its purpose.
(c) TOLL-FREE HOTLINE- The Commission shall establish a toll-free
telephone number that shall be made available to members of the public seeking
information about issues pertaining to financial literacy and education.
(d) DEVELOPMENT AND DISSEMINATION OF MATERIALS- The Commission shall--
(1) develop materials to promote financial literacy and education;
and
(2) disseminate such materials to the general public.
(e) COORDINATION OF EFFORTS- The Commission shall take such steps as are
necessary to coordinate and promote financial literacy and education efforts
at the State and local level, including promoting partnerships among Federal,
State, and local governments, nonprofit organizations, and private
enterprises.
(1) IN GENERAL- The Commission shall--
(A) not later than 18 months after the date of enactment of this Act,
develop a national strategy to promote basic financial literacy and
education among all American consumers; and
(B) coordinate Federal efforts to implement the strategy developed
under subparagraph (A).
(2) STRATEGY- The strategy to promote basic financial literacy and
education required to be developed under paragraph (1) shall provide
for--
(A) participation by State and local governments and private,
nonprofit, and public institutions in the creation and implementation of
such strategy;
(B) the development of methods--
(i) to increase the general financial education level of current and
future consumers of financial services and products; and
(ii) to enhance the general understanding of financial services and
products;
(C) review of Federal activities designed to promote financial
literacy and education, and development of a plan to improve coordination
of such activities; and
(D) the identification of areas of overlap and duplication among
Federal financial literacy and education activities and proposed means of
eliminating any such overlap and duplication.
(3) NATIONAL STRATEGY REVIEW- The Commission shall, not less than
annually, review the national strategy developed under this subsection and
make such changes and recommendations as it deems necessary.
(g) CONSULTATION- The Commission shall actively consult with a variety of
representatives from private and nonprofit organizations and State and local
agencies, as determined appropriate by the Commission.
(1) IN GENERAL- Not later than 18 months after the date of the first
meeting of the Commission, and annually thereafter, the Commission shall
issue a report, the Strategy for Assuring Financial Empowerment (`SAFE
Strategy'), to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives on the progress of the Commission in carrying out this
title.
(2) CONTENTS- The report required under paragraph (1) shall
include--
(A) the national strategy for financial literacy and education, as
described under subsection (f);
(B) information concerning the implementation of the duties of the
Commission under subsections (a) through (g);
(C) an assessment of the success of the Commission in implementing the
national strategy developed under subsection (f);
(D) an assessment of the availability, utilization, and impact of
Federal financial literacy and education materials;
(E) information concerning the content and public use of--
(i) the website established under subsection (b); and
(ii) the toll-free telephone number established under subsection
(c);
(F) a brief survey of the financial literacy and education materials
developed under subsection (d), and data regarding the dissemination and
impact of such materials, as measured by improved financial
decisionmaking;
(G) a brief summary of any hearings conducted by the Commission,
including a list of witnesses who testified at such hearings;
(H) information about the activities of the Commission planned for the
next fiscal year;
(I) a summary of all Federal financial literacy and education
activities targeted to communities that have historically lacked access to
financial literacy materials and education, and have been underserved by
the mainstream financial systems; and
(J) such other materials relating to the duties of the Commission as
the Commission deems appropriate.
(3) INITIAL REPORT- The initial report under paragraph (1) shall include
information regarding all Federal programs, materials, and grants which seek
to improve financial literacy, and assess the effectiveness of such
programs.
(i) TESTIMONY- The Commission shall annually provide testimony by the
Chairperson to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives.
SEC. 515. POWERS OF THE COMMISSION.
(1) IN GENERAL- The Commission shall hold such hearings, sit and act at
such times and places, take such testimony, and receive such evidence as the
Commission deems appropriate to carry out this title.
(2) PARTICIPATION- In hearings held under this subsection, the
Commission shall consider inviting witnesses from, among other
groups--
(A) other Federal Government officials;
(B) State and local government officials;
(C) consumer and community groups;
(D) nonprofit financial literacy and education groups (such as those
involved in personal finance and economic education); and
(E) the financial services industry.
(b) INFORMATION FROM FEDERAL AGENCIES- The Commission may secure directly
from any Federal department or agency such information as the Commission
considers necessary to carry out this title. Upon request of the Chairperson,
the head of such department or agency shall furnish such information to the
Commission.
(c) PERIODIC STUDIES- The Commission may conduct periodic studies
regarding the state of financial literacy and education in the United States,
as the Commission determines appropriate.
(d) MULTILINGUAL- The Commission may take any action to develop and
promote financial literacy and education materials in languages other than
English, as the Commission deems appropriate, including for the website
established under section 514(b), at the toll-free number established under
section 514(c), and in the materials developed and disseminated under section
514(d).
SEC. 516. COMMISSION PERSONNEL MATTERS.
(a) COMPENSATION OF MEMBERS- Each member of the Commission shall serve
without compensation in addition to that received for their service as an
officer or employee of the United States.
(b) TRAVEL EXPENSES- The members of the Commission shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates authorized for
employees of agencies under subchapter I of chapter 57 of title 5, United
States Code, while away from their homes or regular places of business in the
performance of services for the Commission.
(1) IN GENERAL- The Director of the Office of Financial Education of the
Department of the Treasury shall provide assistance to the Commission, upon
request of the Commission, without reimbursement.
(2) DETAIL OF GOVERNMENT EMPLOYEES- Any Federal Government employee may
be detailed to the Commission without reimbursement, and such detail shall
be without interruption or loss of civil service status or privilege.
SEC. 517. STUDIES BY THE COMPTROLLER GENERAL.
(a) EFFECTIVENESS STUDY- Not later than 3 years after the date of
enactment of this Act, the Comptroller General of the United States shall
submit a report to Congress assessing the effectiveness of the Commission in
promoting financial literacy and education.
(b) STUDY AND REPORT ON THE NEED AND MEANS FOR IMPROVING FINANCIAL
LITERACY AMONG CONSUMERS-
(1) STUDY REQUIRED- The Comptroller General of the United States shall
conduct a study to assess the extent of consumers' knowledge and awareness
of credit reports, credit scores, and the dispute resolution process, and on
methods for improving financial literacy among consumers.
(2) FACTORS TO BE INCLUDED- The study required under paragraph (1) shall
include the following issues:
(A) The number of consumers who view their credit reports.
(B) Under what conditions and for what purposes do consumers primarily
obtain a copy of their consumer report (such as for the purpose of
ensuring the completeness and accuracy of the contents, to protect against
fraud, in response to an adverse action based on the report, or in
response to suspected identity theft) and approximately what percentage of
the total number of consumers who obtain a copy of their consumer report
do so for each such primary purpose.
(C) The extent of consumers' knowledge of the data collection
process.
(D) The extent to which consumers know how to get a copy of a consumer
report.
(E) The extent to which consumers know and understand the factors that
positively or negatively impact credit scores.
(3) REPORT REQUIRED- Before the end of the 12-month period beginning on
the date of enactment of this Act, the Comptroller General shall submit a
report to Congress on the findings and conclusions of the Comptroller
General pursuant to the study conducted under this subsection, together with
such recommendations for legislative or administrative action as the
Comptroller General may determine to be appropriate, including
recommendations on methods for improving financial literacy among
consumers.
SEC. 518. THE NATIONAL PUBLIC SERVICE MULTIMEDIA CAMPAIGN TO ENHANCE THE
STATE OF FINANCIAL LITERACY.
(a) IN GENERAL- The Secretary of the Treasury (in this section referred to
as the `Secretary'), after review of the recommendations of the Commission, as
part of the national strategy, shall develop, implement, and conduct a pilot
national public service multimedia campaign to enhance the state of financial
literacy and education in the United States.
(b) PROGRAM REQUIREMENTS-
(1) PUBLIC SERVICE CAMPAIGN- The Secretary, after review of the
recommendations of the Commission, shall select and work with a nonprofit
organization or organizations that are especially well-qualified in the
distribution of public service campaigns, and have secured private sector
funds to produce the pilot national public service multimedia
campaign.
(2) DEVELOPMENT OF MULTIMEDIA CAMPAIGN- The Secretary, after review of
the recommendations of the Commission, shall develop, in consultation with
nonprofit, public, or private organizations, especially those that are well
qualified by virtue of their experience in the field of financial literacy
and education, to develop the financial literacy national public service
multimedia campaign.
(3) FOCUS OF CAMPAIGN- The pilot national public service multimedia
campaign shall be consistent with the national strategy, and shall promote
the toll-free telephone number and the website developed under this
title.
(c) MULTILINGUAL- The Secretary may develop the multimedia campaign in
languages other than English, as the Secretary deems appropriate.
(d) PERFORMANCE MEASURES- The Secretary shall develop measures to evaluate
the effectiveness of the pilot national public service multimedia campaign, as
measured by improved financial decision making among individuals.
(e) REPORT- For each fiscal year for which there are appropriations
pursuant to the authorization in subsection (e), the Secretary shall submit a
report to the Committee on Banking, Housing, and Urban Affairs and the
Committee on Appropriations of the Senate and the Committee on Financial
Services and the Committee on Appropriations of the House of Representatives,
describing the status and implementation of the provisions of this section and
the state of financial literacy and education in the United States.
(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary, not to exceed $3,000,000 for fiscal years 2004,
2005, and 2006, for the development, production, and distribution of a pilot
national public service multimedia campaign under this section.
SEC. 519. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Commission such sums as may
be necessary to carry out this title, including administrative expenses of the
Commission.
TITLE VI--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS
SEC. 611. CERTAIN EMPLOYEE INVESTIGATION COMMUNICATIONS EXCLUDED FROM
DEFINITION OF CONSUMER REPORT.
(a) IN GENERAL- Section 603 of the Fair Credit Reporting Act (15 U.S.C.
1681a), as amended by this Act is amended by adding at the end the
following:
`(x) EXCLUSION OF CERTAIN COMMUNICATIONS FOR EMPLOYEE INVESTIGATIONS-
`(1) COMMUNICATIONS DESCRIBED IN THIS SUBSECTION- A communication is
described in this subsection if--
`(A) but for subsection (d)(2)(D), the communication would be a
consumer report;
`(B) the communication is made to an employer in connection with an
investigation of--
`(i) suspected misconduct relating to employment; or
`(ii) compliance with Federal, State, or local laws and regulations,
the rules of a self-regulatory organization, or any preexisting written
policies of the employer;
`(C) the communication is not made for the purpose of investigating a
consumer's credit worthiness, credit standing, or credit capacity;
and
`(D) the communication is not provided to any person except--
`(i) to the employer or an agent of the employer;
`(ii) to any Federal or State officer, agency, or department, or any
officer, agency, or department of a unit of general local
government;
`(iii) to any self-regulatory organization with regulatory authority
over the activities of the employer or employee;
`(iv) as otherwise required by law; or
`(v) pursuant to section 608.
`(2) SUBSEQUENT DISCLOSURE- After taking any adverse action based in
whole or in part on a communication described in paragraph (1), the employer
shall disclose to the consumer a summary containing the nature and substance
of the communication upon which the adverse action is based, except that the
sources of information acquired solely for use in preparing what would be
but for subsection (d)(2)(D) an investigative consumer report need not be
disclosed.
`(3) SELF-REGULATORY ORGANIZATION DEFINED- For purposes of this
subsection, the term `self-regulatory organization' includes any
self-regulatory organization (as defined in section 3(a)(26) of the
Securities Exchange Act of 1934), any entity established under title I of
the Sarbanes-Oxley Act of 2002, any board of trade designated by the
Commodity Futures Trading Commission, and any futures association registered
with such Commission.'.
(b) TECHNICAL AND CONFORMING AMENDMENT- Section 603(d)(2)(D) of the Fair
Credit Reporting Act (15 U.S.C. 1681a(d)(2)(D)) is amended by inserting `or
(x)' after `subsection (o)'.
TITLE VII--RELATION TO STATE LAWS
SEC. 711. RELATION TO STATE LAWS.
Section 625 of the Fair Credit Reporting Act (15 U.S.C. 1681t), as so
designated by section 214 of this Act, is amended--
(1) in subsection (a), by inserting `or for the prevention or mitigation
of identity theft,' after `information on consumers,';
(2) in subsection (b), by adding at the end the following:
`(5) with respect to the conduct required by the specific provisions
of--
`(D) section 609(a)(1)(A);
`(F) subsections (e), (f), and (g) of section 615;
`(H) section 623(a)(6); or
(A) by striking paragraph (2);
(B) by striking `(c)--' and all that follows through `do not affect'
and inserting `(c) do not affect'; and
(C) by striking `1996; and' and inserting `1996.'.
TITLE VIII--MISCELLANEOUS
SEC. 811. CLERICAL AMENDMENTS.
(a) SHORT TITLE- Section 601 of the Fair Credit Reporting Act (15 U.S.C.
1601 note) is amended by striking `the Fair Credit Reporting Act.' and
inserting `the `Fair Credit Reporting Act'.'.
(b) Section 604- Section 604(a) of the Fair Credit Reporting Act (15
U.S.C. 1681b(a)) is amended in paragraphs (1) through (5), other than
subparagraphs (E) and (F) of paragraph (3), by moving each margin 2 ems to the
right.
(1) Section 605(a)(1) of the Fair Credit Reporting Act (15 U.S.C.
1681c(a)(1)) is amended by striking `(1) cases' and inserting `(1)
Cases'.
(2)(A) Section 5(1) of Public Law 105-347 (112 Stat. 3211) is amended by
striking `Judgments which' and inserting `judgments which'.
(B) The amendment made by subparagraph (A) shall be deemed to have the
same effective date as section 5(1) of Public Law 105-347 (112 Stat.
3211).
(d) Section 609- Section 609(a) of the Fair Credit Reporting Act (15
U.S.C. 1681g(a)) is amended--
(1) in paragraph (2), by moving the margin 2 ems to the right; and
(2) in paragraph (3)(C), by moving the margins 2 ems to the left.
(e) Section 617- Section 617(a)(1) of the Fair Credit Reporting Act (15
U.S.C. 1681o(a)(1)) is amended by adding `and' at the end.
(f) Section 621- Section 621(b)(1)(B) of the Fair Credit Reporting Act (15
U.S.C. 1681s(b)(1)(B)) is amended by striking `25(a)' and inserting `25A'.
(g) Title 31- Section 5318 of title 31, United States Code, is amended by
redesignating the second item designated as subsection (l) (relating to
applicability of rules) as subsection (m).
(h) CONFORMING AMENDMENT- Section 2411(c) of Public Law 104-208 (110 Stat.
3009-445) is repealed.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
END