,i #aaeth ,,congress #ast ,session ,h4 ,r4 #cgee ,,in ,,the ,,house ,,of ,,representatives ,september #ac1 #bjag,ms4 ,maxine ,waters of ,california introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to amend the ,fair ,credit ,reporting ,act to improve the consumer reporting system1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,comprehensive ,consumer ,credit ,reporting ,reform ,act of #bjag4 #b4 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title4 ,sec4 #b4 ,table of contents4 ,sec4 #c4 ,congressional findings4 ,sec4 #d4 ,effective date4 ,title ,i--,fixing the dispute process ,sec4 #aja4 ,establishes a new right to appeal disputes completed by consumer reporting agencies and furnishers4 ,sec4 #ajb4 ,creates reasonable dispute procedures for furnishers of information and meaningful disclosures to consumers about investigations2 notices by furnishers to consumers of reporting of negative items to consumer reporting agencies4 ,sec4 #ajc4 ,creates reasonable dispute procedures for consumer reporting agencies and meaningful disclosures to consumers about reinvestigations4 ,sec4 #ajd4 ,increases consumers' awareness of dispute rights and tools for challenging errors4 ,sec4 #aje4 ,enhances accuracy and completeness duties for consumer reporting agencies and furnishers4 ,sec4 #ajf4 ,requires furnishers to maintain records necessary to verify accuracy of disputes4 ,sec4 #ajg4 ,establishes new requirements on consumer reporting agencies when notified of inaccurate or incomplete information from furnishers4 ,sec4 #ajh4 ,indication of dispute by consumers and use of disputed information4 ,sec4 #aji4 ,inclusion of public record data sources in consumer reports4 ,sec4 #aaj4 ,injunctive relief for victims4 ,title ,,ii--,restricting the use of credit checks for employment decisions ,sec4 #bja4 ,bans the use of credit information for most employment decisions4 ,title ,,iii--,rehabilitating the credit standing of struggling private education loan borrowers ,sec4 #cja4 ,removes adverse information for certain defaulted or delinquent private education loan borrowers who demonstrate a history of loan repayment4 ,sec4 #cjb4 ,private education loan definitions4 ,title ,,iv--,restoring the impaired credit of victims of predatory activities and unfair consumer reporting practices ,sec4 #dja4 ,shortens the time period that most adverse credit information stays on consumer reports4 ,sec4 #djb4 ,mandates the expedited removal of fully paid or settled debt from consumer reports4 ,sec4 #djc4 ,imposes restrictions on the appearance of medical collections on consumer reports and requires the expedited removal of fully paid or settled medical collections from consumer reports4 ,sec4 #djd4 ,provides credit restoration for victims of predatory mortgage lending and servicing4 ,sec4 #dje4 ,provides credit relief for private education loans borrowers who were defrauded or mislead by proprietary education institution or career education programs4 ,sec4 #djf4 ,establishes right for victims of financial abuse to have adverse information associated with an abuser's fraudulent activity removed from their consumer reports4 ,sec4 #djg4 ,prohibits treatment of credit restoration or rehabilitation as adverse information4 ,title ,v--,monitoring the development and use of credit scores ,sec4 #eja4 ,establishes clear ,federal oversight of the development of credit scoring models by the ,bureau4 ,sec4 #ejb4 ,mandates ongoing review and reports to ,congress by the ,federal ,housing ,finance ,agency on using additional1 alternative1 and updated credit scoring models as part of the criteria for loans purchased by ,fannie ,mae and ,freddie ,mac4 ,sec4 #ejc4 ,requires a ,bureau study and report to ,congress on the impact of using non-traditional data4 ,title ,,vi--,providing greater consumer access to and understanding of consumer reports and credit scores ,sec4 #fja4 ,credit score and educational credit score definitions4 ,sec4 #fjb4 ,expands explanatory information given to consumers about how scores are calculated4 ,sec4 #fjc4 ,requires consumer reporting agencies to disclose prominently the differences between and limitations of credit scores and educational credit scores required prior to a consumer obtaining such scores4 ,sec4 #fjd4 ,provides consumers with free credit score disclosures with their free annual consumer reports upon request and creates instances when consumers automatically receive free consumer reports and credit scores4 ,sec4 #fje4 ,requires private educational lenders to provide consumers with free copies of any consumer reports and credit scores that they used for underwriting before consumers sign loan agreements4 ,sec4 #fjf4 ,requires motor vehicle lenders or indirect auto lenders to provide consumers with free copies of any consumer reports and credit scores that they used for underwriting before consumers sign lease or loan agreements4 ,sec4 #fjg4 ,requires residential mortgage lenders to provide consumers with free copies of any consumer reports and credit scores that they used for underwriting before consumers sign loan agreements4 ,title ,,vii--,banning misleading and unfair consumer reporting practices ,sec4 #gja4 ,prohibits automatic renewals for consumer reporting and credit scoring products and services offered under promotional terms4 ,sec4 #gjb4 ,bans misleading and deceptive marketing related to the provision of consumer reporting and credit scoring products and services4 ,sec4 #gjc4 ,ends excessive direct-to-consumer sales by giving the ,bureau authority to set fair and reasonable fees on consumer reporting and credit scoring products and services sold by consumer reporting agencies to consumers4 ,sec4 #gjd4 ,promotes access to consumer reporting and credit scoring disclosures for consumers with limited ,english proficiency and visual and hearing impairments to enhance their ability to exercise their rights4 ,sec4 #gje4 ,establishes consumers' right to shop for the best deal on certain large dollar loans without harming their credit standing4 ,sec4 #gjf4 ,ends confusion about whether entities are engaged in consumer reporting practices by creating a nationwide consumer reporting agencies registry4 ,title ,,viii--,expanding access to tools to protect vulnerable consumers from identity theft1 fraud1 or a related crime1 and protect victims from further harm ,sec4 #hja4 ,identity theft report definition4 ,sec4 #hjb4 ,credit freeze definition4 ,sec4 #hjc4 ,credit freezes for minors and other vulnerable consumers4 ,sec4 #hjd4 ,enhances fraud alert protections4 ,sec4 #hje4 ,enhances access to credit freezes1 limits the cost of such freezes1 and provides access to free credit freezes for vulnerable consumers4 ,sec4 #hjf4 ,requires disclosure of consumer rights related to credit freezes4 ,sec4 #hjg4 ,provides access to fraud records for victims4 ,sec4 #hjh4 ,required ,bureau to set procedures for reporting identity theft1 fraud1 and other related crime4 ,sec4 #hji4 ,establishes the right to free credit monitoring and identity theft protection services for certain consumers4 ,sec4 #haj4 ,ensures removal of inquiries resulting from identity theft1 fraud1 or other related crime from consumer reports4 ,title ,,ix--,miscellaneous ,sec4 #ija4 ,definitions related to days4 ,sec4 #ijb4 ,technical correction related to risk-based pricing notices4 ,sec4 #ijc4 ,,fcra findings and purpose2 voids certain contracts not in the public interest4 ,sec4 #ijd4 ,general ,bureau rulemaking4 #c4 ,congressional findings ,congress finds the following3 7#a7 ,general findings 7,a7 ,consumer reporting agencies 7,c,r,as7 are companies that collect1 compile1 and provide information about consumers in the form of consumer reports for certain permissible statutory purposes under the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq47 7,,fcra74 ,the three largest ,c,r,as in this country are ,equifax1 ,trans,union1 and ,experian4 ,these ,c,r,as are referred to as nationwide ,c,r,as and the reports that they prepare are commonly referred to as credit reports4 ,furnishers1 such as creditors1 lenders1 and debt collection agencies1 voluntarily submit information to ,c,r,as about their accounts such as the total amount for each loan or credit limit for each credit card and the consumer's payment history on these products4 ,reports also include identifying information about a consumer1 such as their birthdate1 previous mailing addresses1 and current and previous employers4 7,b7 ,in a ,december #bjab paper1 ,key ,dimensions and ,processes in the ,u4,s4 ,credit ,reporting ,system3 ,a review for how the nation's largest credit bureaus manage consumer data1 the ,bureau of ,consumer ,financial ,protection 7,consumer ,bureau7 noted that the three nationwide ,c,r,as maintain credit files on approximately #bjj million adults and receive information from about #aj1jjj furnishers4 ,on a monthly basis1 these furnishers provide information on over #a4c billion consumer credit accounts or other trade lines4 7,c7 ,the #aj largest institutions furnishing credit information to each of the nationwide ,c,r,as account for more than half of all accounts reflected in consumers' credit files4 7,d7 ,consumer reports play an increasingly important role in the lives of ,american consumers4 ,most creditors1 for example1 review these reports to make decisions about whether to extend credit to consumers and what terms and conditions to offer them4 ,as such1 information contained in these reports affects whether a person is able to get a private education loan to pay for college costs1 to secure a mortgage loan to buy a home1 or to obtain a credit card1 as well as the terms and conditions under which consumer credit products or services are offered to them4 7,e7 ,credit reports are also increasingly used for many noncredit decisions1 including by landlords to determine whether to rent an apartment to a prospective tenant and by employers to decide whether to hire potential job applicants or to offer a promotion to existing employees4 7,f7 ,c,r,as have a statutory obligation to verify independently the accuracy and completeness of information included on the reports that they provide4 7,g7 ,the nationwide ,c,r,as have failed to establish and follow reasonable procedures1 as required by existing law1 to establish the maximum level of accuracy of information contained on consumer reports4 ,given the repeated failures of these ,c,r,as to comply with accuracy requirements on their own1 legislation is intended to provide them with detailed guidance improving the accuracy and completeness of information contained in consumer reports1 including procedures1 policies1 and practices that these ,c,r,as should already be following to ensure full compliance with their existing obligations4 7,h7 ,the presence of inaccurate or incomplete information on these reports can result in substantial financial and emotional harm to consumers4 ,credit reporting errors can lead to the loss of a new employment opportunity or a denial of a promotion in an existing job1 stop someone from being able to access credit on favorable terms1 prevent a person from obtaining rental housing1 or even trigger mental distress4 7,i7 ,current industry practices impose an unfair burden of proof on consumers trying to fix errors on their reports4 7,j7 ,consumer reports containing inaccurate or incomplete credit information also undermine the ability of creditors and lenders to effectively and accurately underwrite and price credit4 7,k7 ,recognizing that credit reporting affects the lives of almost all consumers in this country and that the consequences of errors on a consumer report can be catastrophic for a consumer1 the ,consumer ,bureau began accepting consumer complaints about credit reporting in ,october #bjab4 7,l7 ,as of ,february #bjag1 the ,consumer ,bureau has handled approximately #ahe1gag credit reporting complaints1 making credit reporting consistently the third most-complained-about subject matter on which the ,consumer ,bureau accepts consumer complaints4 7,m7 ,in the ,monthly ,complaint ,report ,volume #bj1 released in ,february #bjag1 the ,consumer ,bureau noted that #gf percent of credit reporting complaints involved incorrect information on reports1 with consumers frequently expressing their frustrations about the burdensome and time-consuming process to disputing items4 7,n7 ,other common types of credit reporting complaints submitted to the ,consumer ,bureau related to the improper use of a report1 trouble obtaining a report or credit score1 ,c,r,as' investigations1 and credit monitoring or identity protection4 7,o7 ,in the summer #bjae ,supervisory ,highlights1 the ,consumer ,bureau noted that one or more of the largest ,c,r,as failed to adequately oversee furnishers to ensure that they were adhering to the ,,cra's vetting policies and to establish proper procedures to verify public record information4 7,p7 ,according to the fall #bjaf ,supervisory ,highlights1 ,consumer ,bureau examiners determined that one or more debt collectors never investigated indirect disputes that lacked detail or were not accompanied by attachments with relevant information from the consumer4 ,examiners also found that notifications sent to consumers about disputes considered frivolous failed to identify for the consumers the type of material that they could provide in order for the debt collector to complete the investigation of the disputed item4 7,q7 ,a ,february #bjad ,consumer ,bureau report titled ,credit ,reporting ,complaint ,snapshot found that consumers are confused about the extent to which the nationwide ,c,r,as are required to provide them with validation and documentation of a debt that appears on their credit report4 7,r7 ,as evidence that the current system lacks sufficient market incentives for ,c,r,as to develop more robust procedures to increase the accuracy and completeness of information on credit reports1 litigation discovery documented by the ,national ,consumer ,law ,center 7,,nclc71 as part of a ,january #bjji report titled1 ,automated ,injustice3 ,how a ,mechanized ,dispute ,system ,frustrates ,consumers ,seeking to ,fix ,errors in ,their ,credit ,reports1 showed that at least two of the three largest ,c,r,as use quota systems to force employees to process disputes hastily and without the opportunity for conducting meaningful investigations4 ,at least one nationwide ,,cra only allowed dispute resolution staff five minutes to handle a consumer's call4 ,furthermore1 these ,c,r,as were found to have awarded bonuses for meeting quotas and punished those who didn't meet production numbers with probation4 7,s7 ,unlike most other business relationships1 where consumers can register their satisfaction or unhappiness with a particular credit product or service simply by taking their business elsewhere1 consumers have no say in whether their information is included in the ,c,r,as databases and limited legal remedies to hold the ,c,r,as accountable for inaccuracies or poor service4 7,t7 ,accordingly1 despite the existing statutory mandate for ,c,r,as to follow reasonable procedures to assure the maximum possible accuracy of the information whenever they prepare consumer reports1 numerous studies1 the high volume of consumer complaints submitted to the ,consumer ,bureau about incorrect information on consumer reports1 and supervisory activities by the ,consumer ,bureau demonstrate that ,c,r,as continue to skirt their obligations under the law4 7#b7 ,incorrect information on consumer reports 7,a7 ,consumers are entitled to dispute errors on their consumer reports with either the ,,cra1 who issued the report1 or directly with furnishers1 who supplied the account information to the ,,cra1 and request that mistakes be deleted or removed4 ,consumers1 who believe an investigation has not correctly resolved their dispute1 however1 have few options1 other than requesting that a statement about the dispute be included with their future reports4 7,b7 ,c,r,as have a statutory obligation under the ,,fcra to perform a reasonable investigation by conducting a substantive and searching inquiry when a consumer disputes an item on their report4 ,in doing so1 ,c,r,as must conduct an independent review about the accuracy of any disputed item and cannot merely rely on a furnisher's rubber-stamp verification of the integrity of the information they have provided to ,c,r,as4 7,c7 ,the ,federal ,trade ,commission 7,,ftc71 in a ,report to ,congress ,under ,section #cai of the ,fair and ,accurate ,credit ,transactions ,act of #bjjc released in ,december #bjab1 found that #bf percent of survey participants identified at least one potentially material error on their consumer reports1 and #ac percent experienced a change in their credit score once the error was fixed4 7,d7 ,consumer ,bureau examiners have identified repeated deficiencies with the nationwide ,c,r,as' information collection4 ,in the summer #bjae ,supervisory ,highlights released in ,june #bjae1 the ,consumer ,bureau noted continued weaknesses with ,c,r,as' methods and processes for assuring maximum possible accuracy in their reports4 ,examiners also found1 with certain exceptions1 no quality control policies and procedures in place to test consumer reports for accuracy4 7,e7 ,in its ,credit ,reporting ,complaint ,snapshot released in ,february #bjad1 the ,consumer ,bureau found that consumers were uncertain about the depth and validity of the investigations performed about a disputed item4 ,consumers also expressed frustration that1 even though they provided supporting materials that they believed demonstrated the inaccuracy of the information provided by furnishers1 errors continued to remain on their reports4 7,f7 ,in the winter #bjae ,supervisory ,highlights released in ,march #bjae1 the ,consumer ,bureau reported that one or more nationwide ,c,r,as failed to adequately fulfill their dispute-handling obligations1 including by not forwarding to furnishers all relevant information found in letters and supporting documents supplied by consumers when they submitted disputes failing to notify consumers that they had completed investigations1 and not providing consumers with the results of the ,c,r,as' reviews about their disputes4 7,g7 ,consumer ,bureau examiners also noted in the fall #bjaf ,supervisory ,highlights released in ,october #bjaf that one or more entities failed to provide adequate guidance and training to staff about how to differentiate ,,fcra disputes from general customer inquiries1 complaints1 or debt validation requests4 ,consumer ,bureau supervisors also directed one or more entities to develop and implement reasonable procedures to ensure that direct and indirect disputes are appropriately logged1 categorized1 and resolved4 7,h7 ,consumers' increasing frustration about the difficulties of trying to fix credit reporting errors1 evidenced through the volume of consumer complaints related to errors submitted to the ,consumer ,bureau1 are also echoed in another ,,ftc study issued in ,january #bjae4 ,in the ,report to ,congress under ,section #cai for the ,fair and ,accurate ,credit ,transactions ,act of #bjjc1 the ,,ftc found that nearly #gj percent 7#hd people7 of participants from a previous survey that had filed disputes with ,c,r,as continued to believe that at least some of the disputed information remained inaccurate at the time of the follow-up survey4 ,despite these views1 #ej percent 7#db people7 of the survey participants decided to just give up trying to fix the errors1 with only #de percent 7#ch people7 of them planning to continue to try to resolve their disputes4 7,i7 ,the consistently high volume of consumer complaints submitted to the ,consumer ,bureau about credit reporting errors1 coupled with the largest ,c,r,as' repeated quality control weaknesses found by ,consumer ,bureau examiners1 show that the nationwide ,c,r,as have failed to establish and follow reasonable procedures to assure maximum accuracy of information and to conduct independent investigations of consumers' disputes4 ,these ongoing problems demonstrate the need for legislation to-- 7i7 enhance obligations on furnishers to substantiate information and require furnishers to keep records for the same amount of time that adverse information about these accounts may appear on a person's consumer report2 7ii7 eliminate ,c,r,as' discretion to determine the relevancy of materials provided by consumers to support their dispute claims by instead requiring them to pass all material onto furnishers and eliminating ,,cra's discretion to deem some disputes frivolous or irrelevant when a consumer resubmits a claim that they believe has been inadequately resolved2 7iii7 enhance educational content on ,c,r,as' websites to improve consumers' understanding of the dispute process and to make it easier for all consumers to initiate claims1 including by providing these disclosures in other languages besides ,english2 and 7iv7 create a new consumer right to appeal reviews by ,c,r,as and furnishers of the initial disputes4 7#c7 ,injunctive relief 7,a7 ,despite the fact that the ,,fcra currently provides implicit authority for injunctive relief1 consumers have been prevented from exercising this right4 ,legislation explicitly clarifying this right is intended to underscore congressional intent that injunctive relief should be viewed as a remedy available to consumers4 7,b7 ,myriad findings by the courts1 regulators1 consumers1 and consumer advocates make clear that ,c,r,as have failed to establish adequate standards for the accuracy and completeness of consumer reports1 yet the nationwide ,c,r,as have demonstrated little willingness to voluntarily retool their policies and procedures to fix the problems4 7,c7 ,providing courts with explicit authority to issue injunctive relief1 by telling the ,c,r,as to remedy unlawful practices and procedures1 would further ,c,r,as' mandate under the ,,fcra to assure the maximum possible accuracy and completeness of information contained on credit reports4 7,d7 ,absent explicit authority to issue injunctions1 history suggests that the nationwide ,c,r,as are likely to continue conducting business as usual in treating any monetary settlements with individual consumers and fines imposed by ,state attorneys general and ,federal regulators1 simply as the cost of doing business4 7#d7 ,use of credit reports for employment purposes 7,a7 ,the use of credit reports as a factor in making hiring decisions has been found to be prevalent in a diverse array of occupations1 and is not limited to certain high-level management or executive positions4 7,b7 ,according to the ,california ,labor ,federation1 only #be percent of employers researched the credit history of job applicants in #aiih4 ,however1 this practice had increased to #dc percent by #bjjf and to #fj percent by #bjaa4 7,c7 ,a study titled ,do ,job ,applicant ,credit ,histories ,predict ,job ,performance ,appraisal ,ratings or ,termination ,decisions81 published in #bjab1 found that1 while credit history might conceptually measure a person's level of responsibility1 ability to meet deadlines1 dependability1 or integrity1 it does not1 in practice1 actually predict an employee's performance or likelihood to quit4 ,credit reports contain many inaccuracies and credit history can be contaminated by events that are sometimes outside a person's control1 such as a sudden medical expense after an accident or the loss of a job during an economic downturn4 ,the study found that there is no benefit from using credit history to predict job performance or turnover4 7,d7 ,despite the absence of data showing a correlation between job performance and credit-worthiness1 employers continue to use credit checks as a proxy for assessing character and integrity4 ,according to a #bjab ,society for ,human ,resource ,management survey1 organizations indicated that they used credit checks on job candidates primarily to reduce or prevent theft and embezzlement and to minimize legal liability for negligent hiring4 7,e7 ,the use of credit checks for employment purposes creates a true catch-#bb for unemployed people with impaired credit4 ,for example1 the financial hardship caused by losing a job may cause some unemployed individuals to make late or partial payments on their bills1 but their poor credit standing caused by this negative information on their consumer report can also impede their chances of obtaining a new job to end their financial distress4 7,f7 ,a ,september #bjad report by the ,new ,york ,city ,council's ,committee on ,civil ,rights noted that1 for those who have been unemployed for an extended period of time and whose credit has suffered as they fell behind on bills1 the use of credit reports in the hiring process can exacerbate and perpetuate an already precarious situation4 7,g7 ,in a ,march #bjac ,demos report titled ,discredited3 ,how ,employment ,credit ,checks ,keep ,out ,qualified ,workers ,out of a ,job1 one in four survey participants who were unemployed said that a potential employer had requested to check their credit report as part of a job application4 ,among job applicants with blemished credit histories in the survey1 one in seven had been told that they were not being hired because of their credit history4 7,h7 ,while job applicants must give prior approval for a prospective employer to pull their credit reports under the ,,fcra1 this authorization1 as a practical matter1 does not constitute an effective consumer protection because an employer may reject any job applicant who refuses a credit check4 7,i7 ,some negative information on a report may stem from uncontrollable circumstances1 or significant life events in a consumer's life1 such as a medical crisis or a divorce4 ,demos found that poor credit is associated with household unemployment1 lack of health coverage1 and medical debt1 which are factors that reflect economic conditions in the country and personal misfortune that have little relationship with how well a job applicant would perform at work4 7,j7 ,in ,october #bjaa1 ,,fico noted that from #bjjh to #bjji approximately #ej million people experienced a #bj-point drop in their credit scores and about #ba million saw their scores decline by more than #ej points4 ,while the ,great ,recession reduced many consumers' credit scores due to foreclosures and other financial hardships1 the financial crisis had a particularly harsh impact on ,african ,americans and ,latinos1 as racial and ethnic minorities and communities of color were frequently targeted by predatory mortgage lenders who steered borrowers into high-cost subprime loans1 even when these borrowers would have qualified for less costly prime credit4 7,k7 ,a ,may #bjjf ,brookings ,institution report titled ,credit ,scores1 ,reports1 and ,getting ,ahead in ,america found that counties with a relatively higher proportion of racial and ethnic minorities in the ,united ,states tended to have lower credit scores compared with counties that had a lower concentration of communities of color4 7,l7 ,studies have consistently found that ,african ,american and ,latino households tend1 on average1 to have lower credit scores than ,white households4 ,the growing use of credit checks1 therefore1 may disproportionately screen otherwise qualified racial and ethnic minorities out of jobs1 leading to discriminatory hiring practices1 and further exacerbating the trend where unemployment for ,african ,american and ,latino communities is elevated well above the rate of ,whites4 7,m7 ,a #bjab ,demos survey found that #fe percent of ,white respondents reported having good or excellent credit scores while over half of ,african ,american households reported only having fair or bad credit4 7#e7 ,private education loans 7,a7 ,the ,consumer ,bureau's ,october #bjad report titled ,annual ,report of the ,,cfpb ,student ,loan ,ombudsman noted many private education loan borrowers1 who sought to negotiate a modified repayment plan when they were experiencing a period of financial distress1 were unable to get assistance from their loan holders1 which often resulting in them defaulting on their loans4 ,this pattern resembles the difficulty that a significant number of mortgage loan borrowers experienced when they sought to take responsible steps to work with their mortgage loan servicer to avoid foreclosure during the ,great ,recession4 7,b7 ,although private student loan holders may allow a borrower to postpone payments while enrolled in school full-time1 many limit this option to a certain time period1 usually #dh to #ff months4 ,this limited time period may not be sufficient for those who need additional time to obtain their degree or who want to continue their education by pursing a graduate or professional degree4 ,the ,consumer ,bureau found that borrowers who were unable to make payments often defaulted or had their accounts sent to collections before they were even able to graduate4 7#f7 ,deceptive practices at certain proprietary education institutions and career education programs 7,a7 ,,nclc cited the proliferation of law enforcement actions against many for-profit schools in its ,june #bjad report1 titled ,ensuring ,educational ,integrity3 #aj ,steps to ,improve ,state ,oversight of ,for-profit ,schools1 to demonstrate the pervasive problem in this sector of targeting low-income students with deceptive high-pressure sales techniques involving inflated job placement rates and misleading data on graduate wages1 and false representations about the transferability of credits and the employability of graduates in occupations that require licensure4 ,student loan borrowers at these schools may be left with nothing but worthless credentials and large debt4 ,those who default on their student loans face years with damaged credit that will adversely impact their ability to rent or buy homes1 purchase cars1 and find employment4 7,b7 ,the closure and bankruptcy of ,corinthian ,colleges1 which was found to have deceived students by steering them into high-interest student loans based on misleading graduation rates and employment data1 is a good example of the problem4 ,even after its closure1 many ,corinthian students remained saddled with student loan debt1 worthless degrees1 and few prospects for employment4 7,c7 ,attending a two-year1 for-profit college costs1 on average1 four times as much as attending a community college4 ,students at for-profit colleges represent only about #aa percent of the total higher education population but a startling #dd percent of all ,federal student loan defaults1 according to the ,united ,states ,department of ,education 7,,doe74 7,d7 ,according to ,,nclc1 a disproportionate number of for-profit students are low-income and people of color4 ,these schools target veterans1 working parents1 first-generation students1 and non-,english speaking students1 who may be more likely than their public or private nonprofit school counterparts to drop out1 incur enormous student debt1 and default on this debt4 ,in the #bjaa-bjab school year1 #bh percent of ,african ,americans and #ae percent of ,latinos attending four-year institutions were enrolled in a for-profit school1 compared to #aj percent of ,whites4 7,e7 ,as highlighted in a press release titled ,obama ,administration ,announces ,final ,rules to ,protect ,students from ,poor-,performing ,career ,college ,programs1 that was issued by the ,,doe on ,october #cj1 #bjad1 too often1 students at career colleges--including thousands of veterans--are charged excessive costs1 but don't get the education they paid for4 ,instead1 students in such programs are provided with poor quality training1 often for low-wage jobs or in occupations where there are simply no job opportunities4 ,they find themselves with large amounts of debt and1 too often1 end up in default4 ,in many cases1 students are drawn into these programs with confusing or misleading information44 7#g7 ,medical debt 7,a7 ,research by the ,consumer ,bureau has found that the inclusion of medical collections on consumer reports has unfairly reduced consumers' credit scores4 7,b7 ,the ,consumer ,bureau's review of #e million anonymized credit files from ,september #bjaa to ,september #bjac1 for example1 found that credit scores may underestimate a person's creditworthiness by up to #aj points for those who owe medical debt1 and may underestimate a person's creditworthiness by up to #bb points after the medical debt has been paid4 ,for consumers with lower credit scores1 especially those on the brink of what is considered subprime1 a #aj to #bb point decrease in their credit scores can have a significant impact on their lives1 including by affecting whether they are able to qualify for credit and1 if so1 the terms and conditions under which it is extended to them4 7,c7 ,the ,consumer ,bureau found that half of all collections trade lines that appear on consumer reports are related to medical bills claimed to be owed to hospitals and other medical providers4 ,these trade lines affect the reports of nearly #ae of all consumers in the credit reporting system4 7,d7 ,the ,consumer ,bureau has found that there are no objective or enforceable standards that determine when a debt can or should be reported as a collection trade line4 ,because debt buyers and collectors determine whether1 when1 and for how long to report a collection account1 there is only a limited relationship between the time period reported1 the severity of a delinquency1 and when or whether a collection trade line appears on a consumer's credit report4 7,e7 ,medical bills can be complex and confusing for many consumers1 which results in consumers' uncertainty about what they owe1 to whom1 when1 or for what1 that may cause some people1 who ordinarily pay their bills on time1 to delay or withhold payments on their medical debts4 ,this uncertainty can also result in medical collections appearing on consumer reports4 ,in a ,december #bjad report titled ,consumer ,credit ,reports3 ,a ,study of ,medical and ,non-,medical ,collections1 the ,consumer ,bureau found that a large portion of consumers with medical collections show no other evidence of financial distress and are consumers who ordinarily pay their other financial obligations on time4 ,unlike with most credit products or services1 such as credit cards1 installment loans1 utilities1 or wireless or cable services that have contractual account disclosures describing the terms and conditions of use1 most consumers are not told what their out-of-pocket medical costs will be in advance4 ,consumers needing urgent or emergency care rarely know1 or are provided1 the cost of a medical treatment or procedure before the service is rendered4 7,f7 ,the ,consumer ,bureau concluded that the presence of medical collections is less predictive of future defaults or serious delinquencies than the presence of a nonmedical collection in a study titled ,data ,point3 ,medical ,debt and ,credit ,scores1 issued in ,may #bjad4 7,g7 ,,fico's latest credit scoring model1 ,,fico #i1 changes the treatment of paid collections to disregard any collection matters that the consumer has paid in full4 ,,fico #i1 however1 is not yet widely used by lenders4 7,h7 ,vantage,score's latest credit scoring model1 ,vantage,score #d4j1 will be available in the fall of #bjag4 ,this model will penalize medical collections less than non-medical ones4 7,i7 ,the three nationwide ,c,r,as entered into a settlement agreement with the ,new ,york ,state attorney general in #bjae to address deficiencies in their dispute resolution process and enhance the accuracy of items on reports4 ,these policy changes will be implemented in a three-phrased rollout1 culminating by ,june #bjah4 ,subsequently1 these ,c,r,as entered into a cooperative agreement with #ca ,state ,attorneys ,general1 which was the basis of the creation of the ,national ,consumer ,assistance ,plan 7,,ncap7 to change some of their business practices4 7,j7 ,while the ,c,r,as appear to be voluntarily adopting policy changes on a nationwide basis1 they are not obligated to do so for consumers who reside in ,states that are not party to any of the consent orders4 7,k7 ,as a result of the settlement agreements1 the three nationwide ,c,r,as will set a #ahj-;day waiting period before including medical collections on a report and will remove a medical collection from a report once it is paid by an insurance company4 ,while this change will benefit many1 once a medical collection appears on a report1 it will only be deleted or suppressed if it is found to have been the insurance company's obligation to pay and the insurer pays it4 ,given the research showing there is little predictive value in medical debt information1 medical collections that are paid or settled should quickly be removed from a report1 regardless of who pays or settles this debt4 7#h7 ,financial abuse by known persons 7,a7 ,financial abuse and exploitation are frequently associated with domestic violence4 ,this type of abuse may result in fraudulent charges to a credit card or having fraudulent accounts created by the abuser in the survivor's name4 ,financial abuse may also result in the survivor's inability to make timely payments on their valid obligations due to loss or changes in income that can occur when their abuser steals from or coerces the survivor to relinquish their paychecks or savings4 7,b7 ,by racking up substantial debts in the survivor's name1 abusers are able to exercise financial control over their survivors to make it economically difficult for the survivor1 whose credit is often destroyed1 to escape the situation4 7,c7 ,domestic abuse survivors with poor credit are likely to face significant obstacles in establishing financial independence from their abusers4 ,this can be due1 in part1 because consumer reports may be used when a person attempts to obtain a checking account1 housing1 insurance1 utilities1 employment1 and even a security clearance as required for certain jobs4 7,d7 ,providing documentation of identity 7,,id7 theft in order to dispute information on one's consumer report can be particularly challenging for those who know their financial abuser4 7,e7 ,while it is easier for consumers who obtain a police report to remove fraudulent information from their consumer report and prevent it from reappearing in the future1 according to the ,empire ,justice ,center1 safety and other noncredit concerns may impact the capacity of a survivor of financial abuse committed by a known person to turn to law enforcement to get a police report4 7,f7 ,according to the ,legal ,aid ,society in ,new ,york1 domestic abuse survivors1 seeking to remove adverse information stemming from financial abuse by contacting their furnishers directly1 are likely to face skepticism about claims of ,,id theft perpetrated by a partner because of an assumption that they are aware of1 and may have been complicit in1 the activity which the survivor alleges stems from financial abuse4 7#i7 ,government ,sponsored ,enterprises' 7,,gse7 impact on the use of updated versions or additional credit scoring models by mortgage lenders 7,a7 ,despite innovation in understanding consumer behavior and credit scoring analytics1 many creditors1 particularly mortgage lenders1 continue to use older versions of credit scoring models and algorithms4 7,b7 ,lenders that originate residential mortgage loans generally adhere to the underwriting guidelines set by ,fannie ,mae and ,freddie ,mac1 which reference the #bjjd ,,fico credit scoring model 7developed more than a decade ago71 not the most recent versions4 7,c7 ,despite changes to credit scoring models offered by ,,fico and ,vantage,score in recent years to reflect current research about consumer behavior and creditworthiness1 it is likely that paid collections will continue to be factored into the risk level for many consumers applying for credit because there is no requirement that creditors or lenders adopt the most up-to-date credit scoring models4 7#aj7 ,consumers' confusion about consumer reports and credit scores 7,a7 ,while nationwide ,c,r,as are required by law to supply consumers with a free copy of their credit report annually1 they can charge consumers to obtain a credit score disclosure4 7,b7 ,a ,july #bjaa ,consumer ,bureau report titled ,the ,impact of ,differences between ,consumer- and ,creditor-,purchased ,credit ,scores found that the credit scores made available to and purchased by consumers from ,c,r,as are unlikely to be the same credit scores used by creditors and lenders to evaluate consumers' creditworthiness4 7,c7 ,that report found that the scarcity of public educational tools to inform consumers of the differences among credit scores1 the large combined market share and brand recognition of ,,fico credit scores1 and the marketing practices of some credit score sellers may perpetuate consumers' confusion about credit scores4 ,as a result1 some consumers may be purchasing an educational credit score or subscribing to a credit monitoring service sold by a ,,cra1 without realizing the limitations and usefulness of these products and services4 7,d7 ,similarly1 a ,september #bjab ,consumer ,bureau report titled ,analysis of ,differences between ,consumer- and ,creditor-,purchased ,credit ,scores found that consumers do not know before they purchase a credit score from a ,,cra whether this credit score will closely track or vary significantly from the credit score sold to creditors or lenders4 ,given the lack of transparency about the usefulness of credit scores that are marketed for purchase by consumers from ,c,r,as and the resulting consumer confusion1 the ,consumer ,bureau recommended that companies selling scores to consumers clearly inform consumers that the scores marketed to consumers for purchase by ,c,r,as can vary1 sometimes substantially1 from the scores that are actually sold to and used by creditors and lenders4 7,e7 ,a ,february #bjaa study by ,consumer ,federation of ,america and ,vantage,score also found that half of the consumers surveyed did not know that a credit score is designed to indicate the risk of not repaying a credit obligation4 ,consumers also did not know who makes credit scores available1 what numerical range constitutes excellent credit standing1 or the financial implications of having a low credit score4 7,f7 ,many consumers do not realize that they have more than just one credit score4 ,because the submission of credit information to ,c,r,as is voluntary and not all furnishers submit information to every ,,cra1 the information contained in a report also varies among ,c,r,as4 ,as a result1 the credit score generated by each ,,cra is also likely to vary1 resulting in potentially different credit decisions based on an evaluation of different credit reports obtained from different ,c,r,as4 7,g7 ,a ,february #bjae ,consumer ,bureau report titled ,consumer ,voices on ,credit ,reports and ,scores found that consumers had questions about what actions to take to improve their scores once they had seen them1 suggesting that additional disclosures and educational content would be helpful to consumers4 ,the ,consumer ,bureau found that consumers were confused by conflicting advice on how to improve their scores4 7,h7 ,that report also noted that consumers found the process for obtaining consumer reports and credit scores confusing4 ,consumers also were uncertain about whether1 and under what circumstances1 they could obtain a consumer report for free4 7#aa7 ,deceptive and misleading marketing practices 7,a7 ,the ,consumer ,bureau's ,february #bjae report titled ,consumer ,voices on ,credit ,reports and ,scores found that some consumers did not obtain a copy of their consumer report due to concerns about security or of being trapped into purchasing unwanted products like an additional report or a credit monitoring service4 7,b7 ,in ,january #bjag1 the ,consumer ,bureau fined ,trans,union and ,equifax for deceptively marketing credit scores for purchase by consumers as the same credit scores typically used by lenders to determine creditworthiness and for luring consumers into costly subscription services that were advertised as free or #a that automatically charged recurring fees unless cancelled by consumers4 ,the ,consumer ,bureau also found that ,equifax was illegally advertising its products on webpages that consumers accessed through ,annual,credit,report4com before consumers obtained their free disclosures4 ,because of these troubling practices1 ,trans,union was ordered to pay #ac4i million in restitution to harmed consumers and a civil penalty of #c million to the ,consumer ,bureau4 ,equifax was ordered to pay more than #c4g million to affected consumers as well as a civil money penalty of #b4e million to the ,consumer ,bureau4 ,as part of the consent orders1 the ,c,r,as are also supposed to change the way that they sell their products to consumers4 ,the ,c,r,as must also obtain consumers' express consent before enrolling them into subscription services as well as make it easer for consumers to cancel these programs4 7,c7 ,the ,consumer ,bureau fined the other nationwide ,,cra--,experian--in ,march #bjag for deceiving consumers about the use of credit scores that it marketed and sold to consumers as credit scores that were used by lenders and for illegally advertising its products on web pages that consumers accessed through ,annual,credit,report4com before they obtained their free annual disclosures4 ,experian was ordered to pay more than #c4g million in restitution to harmed consumers and a civil monetary penalty of #b4e million to the ,consumer ,bureau4 7,d7 ,the ,consumer ,bureau's ,january and ,march #bjag consent orders with the three nationwide ,c,r,as show that these ,c,r,as have enticed consumers into purchasing products and services that they may not want or need1 in some instances by advertising products or services free that automatically converted into an ongoing subscription service at the regular price unless cancelled by the consumer4 ,although these ,c,r,as must now change their deceptive marketing practices1 codifying these duties is an appropriate way to ensure that these companies never revert back to such misleading tactics4 7,e7 ,given the ubiquitous use of consumer reports in consumers' lives and the fact that consumers' participation in the credit reporting system is involuntary1 ,c,r,as should also prioritize providing consumers with the effective means to safeguard their personal and financial information and improve their credit standing1 rather than seeking to exploit consumers' concerns and confusion about credit reporting and scoring1 to boost their companies' profits4 7,f7 ,vulnerable consumers1 who have legitimate concerns about the security of their personal and financial information1 deserve clear1 accurate1 and transparent information about the credit reporting tools that may be available to them1 such as fraud alerts and freezes4 7#ab7 ,loan comparison shopping 7,a7 ,the ,consumer ,bureau's ,february #bjae report titled ,consumer ,voices on ,credit ,reports and ,scores found that some consumers are reluctant to comparison shop for loans and other types of consumer credit products out of fear that they will lower their credit scores by doing so4 7,b7 ,the ,consumer ,bureau found that one of the most common barriers for people in reviewing their own credit reports and shopping for the best credit terms was a lack of understanding of the differences between soft and hard inquiries and whether requesting a copy of their own report would adversely impact their credit standing4 7,c7 ,the ,consumer ,bureau revealed that consumers with accurate perceptions of their creditworthiness may be better equipped to shop for favorable credit terms4 7#ac7 ,protections for consumers' credit information 7,a7 ,despite heightened awareness1 incidents of ,,id theft continue to rise4 ,in ,february #bjae1 the ,,ftc reported that ,,id theft was the top consumer complaint that it received for the #aeth consecutive year4 ,as these incidents increase1 consumers experience significant financial loss and emotional distress from the inability to safeguard effectively and inexpensively their credit information from bad actors4 7,b7 ,according to a ,carnegie ,mellon study1 children are #ej times more likely than adults to have their identities stolen4 ,child identities are valuable to thieves because most children do not have existing files1 and their parents may not notice fraudulent activity until their child applies for a student loan1 a job1 or a credit card4 ,as a result1 the fraudulent activity of the bad actors may go undetected for years4 7,c7 ,despite the increasing incidents of children's ,,id theft1 parents who want to proactively prevent their children from having their identity stolen1 may not be able to do so4 ,only one of the three nationwide ,c,r,as currently allows parents from any ,state to set up a freeze for a minor child4 ,at the other two nationwide ,c,r,as1 parents can only obtain a freeze after a child has become an ,,id theft victim because1 it is only at this point1 that these ,c,r,as have an existing credit file for the child4 ,while many ,states have enacted laws to address this problem1 there is no existing ,federal law4 7,d7 ,according to ,javelin ,strategy ,research's #bjae ,identity ,fraud study1 #af billion was stolen by fraudsters from #ab4g million ,american consumers in #bjad4 ,similarly1 the ,united ,states ,department of ,justice found an estimated #g percent of all residents age #af or older 7about #ag4f million persons7 in this country were victims of one or more incidents of ,,id theft in #bjad1 and the number of elderly victims age #fe or older 7about #hf percent7 increased from #b4a million in #bjab to #b4f million in #bjad4 7,e7 ,consumers frequently express concern about the security of their financial information4 ,according to a #bjae ,master,card survey1 a majority of consumers 7#gg percent7 have anxiety about the possibility that their financial information and ,social ,security numbers may be stolen or compromised1 with about #ee percent of consumers indicating that they would rather have naked pictures of themselves leaked online than have their financial information stolen4 7,f7 ,that survey also revealed that consumers' fears about the online security of their financial information even outweighed consumers' worries about other physical security dangers such as having their houses robbed 7#ei percent7 or being pickpocketed 7#df percent74 7,g7 ,despite the increasing risks consumers face1 there is no ,federal requirement that ensures victims and other vulnerable consumers can obtain credit freezes1 the best tool for protecting against new account fraud1 free of charge4 ,nor is there a ,federal requirement to ensure that consumers1 regardless of the ,state they reside in1 can proactively get a credit freeze1 particularly if they do not have an existing credit file1 to guard against the risk of ,,id theft and fraud for a fair and reasonable fee4 7,h7 ,as a result of varying ,state laws1 many consumers may be unable to quickly lift a credit freeze that they place on their consumer report1 either for a specific creditor or category of creditors when they want or need credit4 ,indeed1 many consumers may not be taking advantage of existing credit freeze rights provided at the ,state level1 if they perceive the benefits of this protection are outweighed by the disadvantages associated with it4 7,i7 ,according to ,consumer ,reports1 roughly #ej million ,american consumers spent about #c4e billion in #bjaj to purchase products aimed at protecting their identity1 with the annual cost of these services ranging from #abj to #cjj4 ,as risks to consumers' personal and financial information continue to grow1 consumers need additional protections to ensure that they have fair and reasonable access to the full suite of ,,id theft and fraud prevention measures that may be right for them4 #d4 ,effective date ,except as otherwise specified1 the amendments made by this ,act shall take effect #b years after the date of the enactment of this ,act4 ,i ,fixing the dispute process #aja4 ,establishes a new right to appeal disputes completed by consumer reporting agencies and furnishers 7a7 ,in general ,section #faa7;a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;i7a77 is amended to read as follows3 7a7 ,reinvestigations of disputed information by a consumer reporting agency 7#a7 ,reinvestigations required 7,a7 ,in general ,subject to subsection 7f71 if the completeness or accuracy of any item of information contained in a consumer's file at a consumer reporting agency is disputed by the consumer and the consumer notifies the agency 7either directly or indirectly through a reseller or an authorized third party7 of such dispute1 the agency shall1 free of charge-- 7i7 conduct a reasonable reinvestigation using the process described in paragraph 7#c7 to determine whether the disputed information is inaccurate1 incomplete1 or cannot be verified2 7ii7 notify the consumer that a notation described in section #fje7;e7 will be added to the consumer's file until the reinvestigation has been completed and that such notation can be removed at the request of the consumer2 and 7iii7 before the end of the #cj-;day period beginning on the date on which the consumer reporting agency receives the notice of the dispute from the consumer or the reseller-- 7,i7 record the current status of the disputed information2 or 7,,ii7 delete or modify the item in accordance with paragraph 7#c77;,d74 7,b7 ,extension of period to reinvestigate ,except as provided in subparagraph 7,c71 the #cj-;day period described in subparagraph 7,a7 may be extended for period not to exceed #ae days if the consumer reporting agency receives additional information from the consumer or the reseller regarding the dispute after the date on which the consumer reporting agency notified any person who provided any item of information in dispute under paragraph 7#b77;,a74 7,c7 ,limitations on extension of period to reinvestigate ,subparagraph 7,b7 shall not apply to any reinvestigation in which1 during the #cj-;day period described in subparagraph 7,a71 the disputed information is found to be inaccurate or incomplete1 or the consumer reporting agency determines that the disputed information cannot be verified4 7#b7 ,prompt notice of dispute to furnisher of information2 provision of information regarding dispute provided by the consumer or reseller 7,a7 ,in general ,before the end of the period of #e business days beginning on the date on which a consumer reporting agency receives notice of a dispute from any consumer or reseller under paragraph 7#a77;,a71 the consumer reporting agency shall provide notification of the dispute to any person who provided any item of information in dispute1 at the address and in the manner established with such person4 ,the notice shall include all information1 including substantiating documents1 regarding the dispute that was submitted to the consumer reporting agency4 7,b7 ,provision of additional information regarding dispute after notification to the furnisher of information ,if a consumer reporting agency receives additional information regarding the dispute from the consumer or reseller after the agency provides the notification described under subparagraph 7,a7 and before the end of the #cj-;day period described in paragraph 7#a77;,a71 the consumer reporting agency shall1 not later than #c business days after receiving such information1 provide such information to the person who provided the information in dispute4 7#c7 ,reasonable standards for consumer reporting agencies for conducting reinvestigations and resolving disputes submitted by consumers 7,a7 ,in general ,in conducting a reinvestigation of disputed information1 a consumer reporting agency shall1 at a minimum-- 7i7 maintain sufficient resources and trained staff1 commensurate with the volume and complexity of disputes received or reasonably anticipated to be received1 to determine whether the disputed information is accurate1 complete1 or can be verified by the person who provided the information2 7ii7 ensure that all staff involved at any level of the reinvestigation process1 including any individual with ultimate authority over determining whether the disputed information is inaccurate1 incomplete1 or cannot be verified1 are located within the ,united ,states2 7iii7 verify that the personally identifiable information of the consumer submitting the dispute matches the personally identifiable information contained in the consumer's file1 and that such information is accurate and complete2 7iv7 verify that the consumer reporting agency has a record of the information being disputed2 and 7v7 conduct a reasonable review that considers all information1 including substantiating documents1 provided by the consumer or reseller4 7,b7 ,consumer reporting ,the consumer reporting agency shall not impose any limitation or otherwise impede the ability of a consumer to submit information about the disputed item4 7,c7 ,independent analysis ,the reinvestigation conducted under subparagraph 7,a7 shall be an independent analysis1 separate from any investigation by a reseller or a person who provided the disputed information4 7,d7 ,deletion or modification of information contained in a consumer file ,if the disputed information is found to be inaccurate1 incomplete1 or cannot be verified1 the dispute resolution staff of the consumer reporting agency shall have the direct authority to delete or modify such information in the consumer's file1 as appropriate1 during the #cj-;day period described in paragraph 7#a77;,a71 shall promptly notify the consumer of the results of the reinvestigation as described in paragraph 7#d71 and shall promptly notify any person who provided such information to the consumer reporting agency of the modification or deletion made to the consumer's file4 7#d7 ,notice to consumer of results of reinvestigation 7,a7 ,in general ,not later than #e business days after the conclusion of a reinvestigation conducted under this subsection1 the consumer reporting agency shall provide written notice to the consumer of the results of the reinvestigation by postal mail or1 if authorized by the consumer for that purpose1 by other means available to the agency4 7,b7 ,contents of notice to consumer of results of reinvestigation ,the notice described in subparagraph 7,a7 shall include-- 7i7 a statement that the reinvestigation of the disputed information has been completed2 7ii7 a statement informing the consumer as to whether the disputed information was determined to be inaccurate1 incomplete1 or unverifiable1 including a statement of the specific reasons supporting the determination2 7iii7 if information in the consumer's file has been deleted or modified as a result of the reinvestigation-- 7,i7 a copy of the consumer report and credit score or educational score 7if applicable7 that is based upon the consumer's revised file2 7,,ii7 a statement identifying the specific information from the consumer's file that was deleted or modified because such information was determined to be inaccurate1 incomplete1 or unverifiable by the consumer reporting agency2 7,,iii7 a statement that the consumer has the right1 free of charge1 to obtain an additional consumer report and credit score or educational credit score 7if applicable7 within the #ab-month period following the date of the conclusion of the reinvestigation1 regardless of whether the consumer obtained or will obtain a free annual consumer report and credit score or educational score 7if applicable7 under section #fab2 and 7,,iv7 a statement that the consumer has the right1 free of charge1 to request under subsection 7d7 that the consumer reporting agency furnish notifications of the consumer's revised report2 7iv7 a description of the procedure used by the dispute resolution staff of the consumer reporting agency to determine the accuracy or completeness of the information1 including the business name1 mailing address1 telephone number1 and ,internet website address 7if available7 of any person who provided information who was contacted by the staff in connection with the determination2 7v7 a statement that the consumer has the right1 free of charge1 to add a narrative statement to the consumer's file disputing the accuracy or completeness of the information1 regardless of the results of the reinvestigation by the agency1 and the process for submitting such a narrative pursuant to subsection 7b72 7vi7 a copy of all information relating to the consumer that was used by the consumer reporting agency in carrying out the reinvestigation and relied upon as the basis for the determination about the accuracy and completeness of the disputed information2 7vii7 a statement that a consumer may1 free of charge1 challenge the results of the reinvestigation by appeal within #abj days after the date the notice of the results of the reinvestigation was provided to the consumer and the process for submitting an appeal2 7viii7 a statement informing the consumer that a notation described in section #fje7;e7 will be added to the file of the consumer during the period in which the consumer appeals the results of a reinvestigation and that such notation can be removed at the request of the consumer2 and 7ix7 any other information1 as determined by the ,bureau4 7#e7 ,requirements relating to reinsertion of previously deleted or modified material 7,a7 ,certification of new determination that item is accurate or complete ,a consumer reporting agency may not reinsert into a consumer's file any information that was previously deleted or modified pursuant to paragraph 7#c77;,d71 unless the person who provided the information-- 7i7 requests that the consumer reporting agency reinsert such information2 7ii7 submits a written certification that the information is accurate and complete2 and 7iii7 provides a statement describing the specific reasons why the information should be inserted4 7,b7 ,notice to consumer before reinsertion can occur ,upon receipt of a request for reinsertion of disputed information under subparagraph 7,a71 the consumer reporting agency shall1 not later than #e business days before the consumer reporting agency reinserts the information into the consumer's file1 notify the consumer in writing of such request for reinsertion4 ,such notice shall include-- 7i7 the business name1 mailing address1 telephone number1 and ,internet website address 7if available7 of any person who provided information to or contacted the consumer reporting agency in connection with the reinsertion2 7ii7 a copy of the information relating to the consumer1 the certification that the information is accurate or complete1 and the statement of the reasons supporting reinsertion provided by the person who provided the information to the consumer reporting agency under subparagraph 7,a72 7iii7 a statement that the consumer may obtain1 free of charge and within the #ab-month period following the date the notice under this subparagraph was issued1 a consumer report and credit score or educational score 7if applicable7 from the consumer reporting agency that includes the reinserted information1 regardless of whether the consumer obtained or will obtain a free annual consumer report and credit score or educational credit score 7if applicable7 under section #fab2 7iv7 a statement that the consumer may appeal the determination that the previously deleted or modified information is accurate or complete and a description of the procedure for the consumer to make such an appeal pursuant to subsection 7h72 and 7v7 a statement that the consumer has the right to add a narrative statement1 free of charge1 to the consumer's file disputing the accuracy or completeness of the disputed information and a description of the process to add such a narrative statement pursuant to subsection 7b74 7#f7 ,expedited dispute resolution ,if a consumer reporting agency determines that the information provided by the consumer is sufficient to substantiate that the item of information is inaccurate1 incomplete1 or cannot be verified by the person who furnished such information1 and the consumer reporting agency deletes or modifies such information within #c business days of receiving notice of the dispute1 the consumer reporting agency shall be exempt from the requirements of paragraph 7#d71 if the consumer reporting agency provides to the consumer-- 7,a7 prompt notice confirming the deletion or modification of the information from the consumer's file in writing or by other means1 if agreed to by the consumer when the information is disputed2 7,b7 a statement of the consumer's right to request that the consumer reporting agency furnish notifications of a revised consumer report pursuant to subsection 7d72 7,c7 not later than #e business days after deleting or modifying the information1 a copy of the consumer report and credit score or educational score 7if applicable7 that is based upon the consumer's revised file2 and 7,d7 a statement that the consumer may obtain1 free of charge and within the #ab-month period following the date the notice under this paragraph was sent to the consumer1 a consumer report and credit score or educational score 7if applicable7 from the consumer reporting agency1 regardless of whether the consumer obtained or will obtain their free annual consumer report and credit score or educational score 7if applicable7 under section #fab4 7#g7 ,no excuse for failure to conduct reinvestigation ,a consumer reporting agency may not refuse to conduct a reinvestigation under this subsection because the agency determines that the dispute was submitted by an authorized third party1 unless the agency has clear and convincing evidence that the third party is not authorized to submit the dispute on the consumer's behalf4 ,if the consumer reporting agency refuses to reinvestigate a dispute for these reasons1 it shall provide a clear and conspicuous notice to the consumer explaining the reasons for the refusal and describing the specific information the consumer is required to provide for the agency to conduct the reinvestigation4 4 7b7 ,ensuring consumer reporting agencies furnish certain notifications without charge ,section #faa7;d7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;i7d77 is amended by inserting and without charge after request of the consumer4 7c7 ,including specialty consumer reporting agencies in reports 7#a7 ,in general ,section #faa7;e7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;i7e77 is amended by inserting or #fjc7x7 after section #fjc7p74 7#b7 ,technical amendment ,paragraph 7#a7 of such section 7#ae ,u4,s4,c4 #afha;i7e77#a77 is amended by striking ,the ,commission and inserting ,the ,bureau4 7d7 ,conforming amendments ,such ,act is further amended-- 7#a7 in section #fje;,b7c77#b71 by striking section #faa7;a77#e77;,b7 and inserting section #faa7;a77#e72 7#b7 in section #faa-- 7,a7 in subsection 7c71 by striking unless there is reasonable grounds to believe that it is frivolous or irrevelant12 and 7,b7 in subsection 7f77#c7-- 7i7 in subparagraph 7,a71 by striking paragraph 7#f71 7#g71 or 7#h7 of subsection 7a7 and inserting paragraph 7#d7 or 7#e7 of subsection 7a72 and 7ii7 in subparagraph 7,b71 by striking in the manner required under paragraph 7#h77;,a72 and 7#c7 in section #fbc7;b77#a77;,b71 by striking relevant before information4 7e7 ,global technical corrections to references to nationwide specialty consumer reporting agency ,such ,act is further amended-- 7#a7 by striking section #fjc7w7 and inserting section #fjc7x7 each place such term appears2 and 7#b7 in section #fab7;a77#a77;,a71 by striking 7w7 and inserting 7x74 #ajb4 ,creates reasonable dispute procedures for furnishers of information and meaningful disclosures to consumers about investigations2 notices by furnishers to consumers of reporting of negative items to consumer reporting agencies ,section #faa of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;i7 is amended by adding at the end the following new subsection3 7g7 ,increased consumer awareness of dispute rights 7#a7 ,in general ,not later than #ahj days after the date of enactment of this subsection1 each consumer reporting agency described under subsection 7p7 or 7x7 of section #fjc shall-- 7,a7 establish an ,internet website accessible to consumers2 and 7,b7 post on the home page of such website a hyperlink to a separate webpage established and maintained solely for the purpose of providing information to a consumer about how to dispute an item of information in the consumer report of the consumer4 7#b7 ,dispute webpage requirements ,for a consumer reporting agency described under subsection 7p7 or 7x7 of section #fjc1 the separate dispute webpage described in paragraph 7#a77;,b7-- 7,a7 may not include any type or form of marketing1 advertising1 information1 or material associated with any products or services offered or sold to consumers2 7,b7 shall clearly and conspicuously disclose a concise statement regarding how to file a dispute through the agency1 free of charge1 in the manner and format prescribed by the ,bureau2 7,c7 shall describe the types of documents that will be used by the agency in resolving the dispute1 including the business name and mailing address to which a consumer may send such documents2 7,d7 shall include a clear and concise explanation of and the process for using electronic or other means to submit such documents1 free of charge1 and without any character or data limitation imposed by the agency2 7,e7 shall include a statement that the consumer may submit information1 free of charge1 that the consumer believes will assist the consumer reporting agency in determining the results of the reinvestigation of the dispute2 7,f7 shall clearly and conspicuously disclose a statement describing the procedure likely to be used by the consumer reporting agency in carrying out a reinvestigation to determine the accuracy or completeness of the disputed item of information1 including the time period in which the consumer will be notified of the results of the reinvestigation1 and a statement that the agency may extend the reinvestigation period by an additional #ae days if the consumer submits additional information after a certain date2 and 7,g7 shall provide translations of all information on the webpage in each of the #aj most commonly spoken languages1 other than ,english1 in the ,united ,states1 as determined by the ,bureau of the ,census on an ongoing basis1 and in formats accessible to individuals with hearing or vision impairments4 4 #ajc4 ,creates reasonable dispute procedures for consumer reporting agencies and meaningful disclosures to consumers about reinvestigations ,section #fbc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afhas-#b7 is amended by adding at the end the following new subsection3 7f7 ,duty of furnishers ,to maintain records of consumers 7#a7 ,in general ,a person who furnishes information to a consumer reporting agency relating to a consumer who has an account with that person shall maintain all information necessary to substantiate the accuracy and completeness of the information furnished1 including any records establishing the liability and terms and conditions under which credit was extended to a consumer and any payment history with respect to such credit4 7#b7 ,retention period ,records described under paragraph 7#a7 shall be maintained until the information with respect to which the records relate may no longer be included in a consumer report pursuant to sections #fje1 #fje;,c1 #fje;,d1 and #fje;,e4 7#c7 ,transfer of ownership ,if a person providing information to a consumer reporting agency is acquired by another person1 or if another person acquires the right to repayment connected to such information1 the acquiring person shall be subject to the requirements of this subsection with respect to such information to the same extent as the person who initially provided such information to the consumer reporting agency4 ,the person selling or transferring the right to repayment shall provide the information described in paragraph 7#a7 to the transferee or the acquirer4 4 #ajd4 ,increases consumers' awareness of dispute rights and tools for challenging errors 7a7 ,duty ,to provide accurate and complete information ,section #fbc7;a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afhas-#b7;a77 is amended-- 7#a7 in the subsection heading1 by inserting and complete after accurate2 7#b7 in paragraph 7#a7-- 7,a7 by inserting or incomplete after inaccurate each place that term appears2 and 7,b7 in subparagraph 7,d71 by inserting or completeness after accuracy2 and 7#c7 in paragraph 7#h7-- 7,a7 in subparagraph 7,a71 by inserting and completeness after accuracy2 and 7,b7 in subparagraph 7,d71 by inserting or completeness after accuracy4 7b7 ,negative information notices to consumers ,section #fbc7;a77#g7 7#ae ,u4,s4,c4 #afhas-#b7;a77#g77 of such ,act is amended to read as follows3 7#g7 ,duty of furnishers to inform consumers about reporting negative information 7,a7 ,general negative information warning notice to all consumers prior to furnishing such information 7i7 ,in general ,any person that regularly furnishes negative information to a consumer reporting agency described in subsection 7p7 or 7x7 of section #fjc about activity on any accounts of a consumer held by such person or transactions associated with credit extended to a consumer by such person shall provide a written general negative information warning notice to each such consumer before such person may furnish any negative information relating to such a consumer4 7ii7 ,content ,such notice shall-- 7,i7 be clear and conspicuous2 7,,ii7 describe the types of activities that constitute negative information2 7,,iii7 inform the consumer that the person may report negative information relating to any such accounts or transactions to a consumer reporting agency described in subsection 7p7 or 7x7 of section #fjc2 7,,iv7 state that the negative information may appear on a consumer report of the consumer for the periods described in section #fje and that during such periods1 the negative information may adversely impact the consumer's credit score2 7,v7 state that in some limited circumstances1 the negative information may result in other adverse actions1 including a denial of a new job or a promotion from existing employment2 and 7,,vi7 state that the consumer has right to-- 7aa7 obtain a copy of their consumer report and credit score or educational score 7if applicable71 which in some instances can be obtained free of charge1 from any consumer reporting agency to which negative information may be been sent2 and 7bb7 dispute1 free of charge1 any errors on a consumer report relating to the consumer4 7iii7 ,timing of notice ,such person shall provide such notice to a consumer not later than #ij days before the date on which the person furnishes negative information relating to such consumer4 7,b7 ,specific negative information notice to a consumer 7i7 ,in general ,any person described in subparagraph 7,a7 that has furnished negative information relating to activity on any accounts of a consumer held by such person or transactions associated with credit extended to a consumer by such person to a consumer reporting agency described in subsection 7p7 or 7x7 of section #fjc shall send a written notice to each such consumer4 7ii7 ,content ,such notice shall-- 7,i7 be clear and conspicuous2 7,,ii7 inform the consumer that the person has furnished negative information relating to such accounts or transactions to a consumer reporting agency described in subsection 7p7 or 7x7 of section #fjc2 7,,iii7 identify any consumer reporting agency to which the negative information was furnished1 including the name of the agency1 mailing address1 ,internet website address1 and toll-free telephone number2 and 7,,iv7 include the statements described in subclauses 7,,iv71 7,v71 and 7,,vi7 of subparagraph 7,a77ii74 7iii7 ,time of notice ,such person shall provide such notice to a consumer not later than #e business days after the date on which the person furnished negative information relating to such consumer4 7,c7 ,notice effective for subsequent submissions ,after providing the notice described in subparagraph 7,b71 the person may submit additional negative information to a consumer reporting agency described in subsection 7p7 or 7x7 of section #fjc without providing additional notice to the consumer1 unless another person acquires the right to repayment connected to the additional negative information4 ,the acquiring person shall be subject to the requirements of this paragraph and shall be required to send consumers the written notices described in this paragraph1 if applicable4 7,d7 ,non-traditional data furnishers ,any person that furnishes negative information to a consumer reporting agency described in subsection 7p7 or 7x7 of section #fjc relating to any accounts of1 or transactions associated with1 a consumer by such person involving non-traditional data shall be subject to the requirements described in subparagraphs 7,a71 7,b71 and 7,c74 7,e7 ,model notices 7i7 ,duty of bureau ,not later than #f months after date of the enactment of this paragraph1 the ,bureau shall issue model forms for the notices described in subparagraphs 7,a7 and 7,b7 that a person may use to comply with the requirements of this paragraph4 7ii7 ,use of model notice not required ,no provision of this paragraph may be construed to require a person to use the model notices prescribed by the ,bureau4 7iii7 ,compliance using model notices ,a person shall be deemed to be in compliance with the requirements of subparagraph 7,a77ii7 or 7,b77ii7 7as applicable7 if the person uses the model notice prescribed by the ,bureau4 7,f7 ,issuance of general negative warning notice without submitting negative information ,no provision of this paragraph may be construed to require a person described in subparagraph 7,a7 or 7,d7 to furnish negative information about a consumer to a consumer reporting agency described in subsection 7p7 or 7x7 of section #fjc4 7,g7 ,safe harbor ,a person shall not be liable for failure to perform the duties required by this paragraph if the person reasonably believes that the person is prohibited1 by law1 from contacting the consumer4 7,h7 ,effective date ,the requirements of subparagraphs 7,a71 7,b71 7,c71 and 7,d7 shall not take effect until the date that is #f months after the date of the issuance of model forms for notices under subparagraph 7,e74 7,i7 ,definitions ,in this paragraph1 the following definitions shall apply3 7i7 ,negative information ,the term negative information means information concerning a consumer's delinquencies1 late payments1 insolvency1 or any form of default4 7ii7 ,non-traditional data ,the term non-traditional data relates to telecommunications payments1 utility payments1 rent payments1 remittances1 wire transfers1 and such other items as determined by the ,bureau4 4 7c7 ,duties of furnishers after receiving notice of dispute from a consumer ,section #fbc7;a77#h77;,e7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afhas-#b7;a77#h77;,e77 is amended to read as follows3 7,e7 ,duties of furnishers after receiving notice of dispute from a consumer ,after receiving a notice of dispute from a consumer pursuant to subparagraph 7,d71 the person that provided the information in dispute to a consumer reporting agency shall-- 7i7 promptly provide to each consumer reporting agency to which the person furnished the disputed information the notice of dispute2 7ii7 review all information1 including any substantiating documents1 provided by the consumer about the disputed information and conduct an investigation1 separate from any reinvestigation by a consumer reporting agency or a reseller conducted with respect to the disputed information2 7iii7 before the expiration of the period under section #faa7;a77#a7 within which a consumer reporting agency would be required to complete its action if the consumer had elected to dispute the information under that section1 complete an investigation of the disputed information pursuant to the standards described in subparagraph 7,g72 7iv7 notify the consumer1 in writing1 of the receipt of the dispute that includes-- 7,i7 a statement about any information additional to the information that the person is required to maintain under subsection 7f7 that would support the person's ability to carry out an investigation to resolve the consumer's dispute2 and 7,,ii7 a statement that the consumer reporting agency to which the disputed information was provided will include a notation described in section #fje7;e7 in the consumer's file until the investigation has been completed1 and information about how a consumer may request that such notation is removed by the agency2 7v7 if the investigation determines the disputed information is inaccurate1 incomplete1 or unverifiable1 promptly notify each consumer reporting agency to which the person furnished such information in accordance with paragraph 7#b72 and 7vi7 notify the consumer of the results of the investigation1 in writing1 in accordance with subparagraph 7,h74 4 7d7 ,eliminating furnishers' authority ,to dismiss disputes as frivolous or irrelevant ,section #fbc7;a77#h7 of such ,act 7#ae ,u4,s4,c4 #afhas-#b7;a77#h77 is amended by striking subparagraph 7,f7 and redesignating subparagraph 7,g7 as subparagraph 7,f74 7e7 ,additional duties ,section #fbc7;a77#h7 of such ,act 7#ae ,u4,s4,c4 #afhas-#b7;a77#h77 is further amended by adding at the end the following new subparagraphs3 7,g7 ,reasonable standards for furnishers for conducting investigations and resolving disputes submitted by consumers ,in any investigation conducted by a person who furnishes information to a consumer reporting agency of an item of information being disputed by a consumer1 the person1 at a minimum-- 7i7 shall maintain sufficient resources and trained staff1 commensurate with the volume and complexity of disputes received or reasonably anticipated to be received1 to conduct investigations2 7ii7 shall verify that the person has a record of the particular information being disputed1 consistent with the requirements of subsection 7f72 7iii7 shall verify that the personally identifiable information of the consumer submitting the dispute matches the personally identifiable information contained on such records2 7iv7 shall conduct a reasonable review to determine whether the disputed information is accurate1 complete1 and can be verified that considers all the information1 including any substantiating documents1 provided by the consumer about the disputed information2 7v7 shall ensure that the investigation is an independent analysis that is separate from any reinvestigation by a consumer reporting agency or a reseller conducted with respect to the disputed information2 and 7vi7 may not impose any limitations or otherwise impede the ability of a consumer to submit information1 including any substantiating documents1 about the disputed information4 7,h7 ,contents of the notice to the consumer about the results of the investigation by the furnisher ,the notice of the results of the investigation described in subparagraph 7,e7 shall include-- 7i7 a statement informing the consumer as to whether the disputed information was determined to be inaccurate1 incomplete1 or unverifiable2 7ii7 a statement of the specific reasons supporting the results of the investigation2 7iii7 a description of the procedure used by the dispute resolution staff of the person who furnishes information to a consumer reporting agency to determine the accuracy or completeness of the information1 including the business name1 mailing address1 telephone number1 and ,internet website address 7if available7 of any person who was contacted by the staff in connection with the determination2 7iv7 a copy of all information relating to the consumer that was used in carrying out the investigation and was the basis for any determination about the accuracy or completeness of the disputed information2 7v7 a statement that consumer will receive1 free of charge1 a copy of their consumer report and credit score or educational credit score 7if applicable71 from any consumer reporting agency to which the disputed information had been provided1 regardless of whether the consumer obtained or will obtain a free consumer report and credit score or educational credit score 7if applicable7 in the #ab-month period preceding receipt of the notice described in this subparagraph pursuant to section #fab7;a77#a72 7vi7 if the disputed information was found to be inaccurate1 incomplete1 or unverifiable1 a statement that the consumer report of the consumer shall be revised to reflect the change to the consumer's file as a result of the investigation2 7vii7 a statement that the consumer has the right to appeal the results of the investigation under paragraph 7#aj71 free of charge1 within #abj days after the date of the notice of the results of the investigation was provided to the consumer and the process for submitting an appeal2 7viii7 a statement that the consumer may add a narrative statement1 free of charge1 to the consumer's file held by the consumer reporting agency to which the information has been furnished disputing the accuracy or completeness of the information1 regardless of the results of the investigation by the person1 and the process for contacting any agency that received the consumer's information from the person to submit a narrative statement2 7ix7 a statement informing the consumer that a notation described in section #fje7;e7 will be added to the consumer's file during the period in which the consumer appeals the results of an investigation and that such notation can be removed at the request of the consumer2 and 7x7 a statement that the consumer has the right to request a copy of their consumer report and credit score or educational credit score 7if applicable71 free of charge1 within the #ab-month period following the date of the conclusion of the investigation from any consumer reporting agency in which the disputed information had been provided1 regardless of whether the consumer obtained or will obtain a free annual consumer report and credit score or educational credit score 7if applicable7 under this subparagraph or section #fab7;a77#a74 4 7f7 ,conforming amendment ,section #fae7;a77#d77;,b7 is amended-- 7#a7 by striking 1 under section #faa1 with a consumer reporting agency2 and 7#b7 by striking furnished by the agency and inserting to a consumer reporting agency under section #faa or to a person who furnished information to an agency under section #fbc4 #aje4 ,enhances accuracy and completeness duties for consumer reporting agencies and furnishers 7a7 ,appeals of reinvestigations conducted by a consumer reporting agency ,section #faa of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;i7 is amended-- 7#a7 in subsection 7b71 by inserting or if the consumer is unsatisfied with the results of an appeal conducted under subsection 7h71 after resolve the dispute12 and 7#b7 by inserting after subsection 7g7 7as added by section #ajb7 the following new subsection3 7h7 ,consumer right ,to appeal results of a consumer reporting agency reinvestigation 7#a7 ,in general ,within #abj days after the date of receipt of the results of a reinvestigation conducted under subsection 7a71 a consumer 7or authorized third party7 may1 free of charge1 appeal the results of such reinvestigation by submitting a notice of appeal to the consumer reporting agency4 7#b7 ,notice of appeal 7,a7 ,requirements ,a notice of appeal described in paragraph 7#a7 may be submitted in writing1 or through a toll-free telephone number or other electronic means established by the consumer reporting agency 7including on the ,internet website described in subsection 7g771 and-- 7i7 shall identify the information contained in the consumer's file that is the subject of the appeal2 7ii7 shall describe the specific reasons for submitting the notice of appeal2 and 7iii7 may provide any information the consumer believes is relevant to substantiate the validity of the dispute4 7,b7 ,consumer reporting agency notice to consumer ,upon receipt of such notice of appeal1 the consumer reporting agency shall promptly provide to the consumer a statement confirming the receipt of the consumer's notice of appeal that shall include-- 7i7 an approximate date on which the consumer's appeal review will be completed2 7ii7 the process and procedures by which such review will be conducted2 and 7iii7 an employee reference number or other employee identifier for each of the specific individuals designated by the consumer reporting agency who1 upon the request of the consumer1 may discuss the substance and status of the appeal4 7#c7 ,consumer reporting agency requirements upon receipt of notice of appeal 7,a7 ,in general ,not later than #bj days after receiving a notice of appeal1 the consumer reporting agency shall review the appeal4 ,if the consumer reporting agency determines the information is inaccurate1 incomplete1 or cannot be verified1 the consumer reporting agency shall delete or modify the item of information being disputed by the consumer from the file of the consumer before the end of the #bj-;day period beginning on the date on which the consumer reporting agency receives a notice of an appeal from the consumer4 7,b7 ,notice of appeal to furnisher2 information regarding dispute provided by the consumer 7i7 ,in general ,before the end of the period of #c business days beginning on the date on which a consumer reporting agency receives a notice of appeal1 the consumer reporting agency shall provide notice of the appeal1 including all information relating to the specific appeal that the consumer reporting agency has received from the consumer1 to any person who provided any information in dispute4 7ii7 ,provision of additional information regarding the dispute ,if the consumer reporting agency receives additional information from the consumer after the agency provides the notice required under clause 7i7 and before the end of the #bj-;day period described in subparagraph 7,a71 the consumer reporting agency shall1 not later than #c business days after receiving such information1 provide such information to any person who provided the information in dispute and shall have an additional #aj business days to complete the appeal review4 7,c7 ,minimum standards for appeals employees 7i7 ,designation ,upon receipt of a notice of appeal under paragraph 7#a71 a consumer reporting agency shall designate one or more specific employees who-- 7,i7 shall be assigned an employee reference number or other employee identifier that can be used by the consumer to discuss the appeal with the specific individuals handling the appeal2 7,,ii7 shall have direct authority to resolve the dispute that is the subject of the notice of appeal from the review stage to its completion2 7,,iii7 shall meet minimum training and ongoing certification requirements at regular intervals1 as established by the ,bureau2 7,,iv7 shall be located within the ,united ,states2 7,v7 may not have been involved in the reinvestigation conducted or terminated pursuant to subsection 7a72 and 7,,vi7 may not be subject to any requirements linking incentives1 including promotion1 to the number of appeals processed within a certain time period4 7ii7 ,requirements ,such employees shall conduct a robust review of the appeal and make a determination regarding the accuracy and completeness of the disputed information by-- 7,i7 conducting an independent analysis1 separate from any investigation by a reseller or person who provided the disputed information1 and separate from any prior reinvestigation conducted by the consumer reporting agency of the disputed information2 7,,ii7 verifying that the personally identifiable information of the consumer submitting the dispute matches the personally identifiable information contained on the consumer's file2 7,,iii7 analyzing the notice of appeal and all information1 including any substantiating documents1 provided by the consumer with the notice of appeal2 7,,iv7 evaluating the validity of any information submitted by any person that was used by the consumer reporting agency in the reinvestigation of the initial dispute2 7,v7 verifying that the consumer reporting agency has a record of the information being disputed2 and 7,,vi7 applying any additional factors or investigative processes1 as specified by the ,bureau4 7,d7 ,notice of appeal results ,not later than #e days after the end of the #bj-;day period described under subparagraph 7,a7 7or the #aj-;day extension period1 as applicable7 the consumer reporting agency shall provide the consumer with written notice of the results of the appeal by postal mail or1 if requested by the consumer1 by other means4 ,the contents of such notice shall include-- 7i7 a statement that the appeal is completed and the date on which it was completed1 the results of the appeal1 and the specific reasons supporting the results of the appeal2 7ii7 a copy of all information relating to the consumer that was used as a basis for deciding the results of the appeal2 7iii7 a consumer report that is based upon the consumer's file as that file may have been revised as a result of the appeal2 7iv7 a description of the procedure used to determine the accuracy and completeness of the information1 including the business name1 telephone number1 mailing address1 and ,internet website address 7if applicable7 of any person who provided information that was contacted in connection with such information1 if reasonably available2 7v7 information describing that the consumer may submit a statement1 without charge1 disputing the accuracy or completeness of information in the consumer's file that was the subject of an appeal under this subsection by submitting a statement directly to each consumer reporting agency that received the information2 7vi7 a description of the consumer's rights pursuant to subsection 7d7 7relating to furnishing notifications to certain users of consumer reports72 and 7vii7 any other information1 as determined by the ,bureau4 7,e7 ,no excuse for failure to conduct appeal ,a consumer reporting agency may not refuse to conduct a review of an appeal under this subsection because the agency determines that the notice of appeal was submitted by an authorized third party1 unless the agency has clear and convincing evidence that the third party is not authorized to submit the notice of appeal on the consumer's behalf4 ,if the consumer reporting agency refuses to conduct a review of the appeal for these reasons1 it shall provide a clear and conspicuous written notice to the consumer explaining the reasons for the refusal and describing any information the consumer is required to provide for the agency to conduct a review of the appeal4 4 7b7 ,appeals of investigations conducted by furnishers of information ,section #fbc7;a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afhas-#b7;a77 is amended by adding at the end the following new paragraph3 7#aj7 ,duty of furnishers of information upon notice of appeal of investigation 7,a7 ,in general ,within #abj days of the date of receipt of the results of an investigation conducted under paragraph 7#h77;,e71 a consumer may1 free of charge1 appeal such results by submitting a notice of appeal to the person who provided the information in the dispute to a consumer reporting agency 7hereafter in this paragraph referred to as the furnisher74 7,b7 ,notice of appeal ,a notice of appeal described in subparagraph 7,a7 may be submitted in writing1 through a toll-free telephone number1 or by other electronic means established by the furnisher1 and-- 7i7 shall identify the information contained in the consumer's file that is the subject of the appeal2 7ii7 shall describe the specific reasons for submitting the notice of appeal2 and 7iii7 may include any information1 including substantiating documents1 the consumer believes is relevant to the appeal4 7,c7 ,furnisher actions ,upon receipt of such notice of appeal1 the furnisher shall-- 7i7 before the end of the period of #c business days beginning on the date on which the furnisher receives the notice of appeal1 notify each consumer reporting agency to which the person furnished such information a statement identifying the items of information that a consumer is appealing2 and 7ii7 notify the consumer confirming the receipt of the consumer's notice of appeal1 including an approximate date when the consumer's appeal will be completed1 the process and procedures by which a review of the appeal will be conducted1 and the specific individual designated by the consumer reporting agency who1 upon the request of the consumer1 may discuss the substance and status of the appeal4 7,d7 ,furnisher requirements upon receipt of notice of appeal ,not later than #bj days after receiving a notice of appeal1 the furnisher shall determine whether the item of information being disputed by the consumer is inaccurate1 incomplete1 or cannot be verified1 and shall notify the consumer reporting agency of the determination4 ,if the furnisher cannot verify the accuracy or completeness of the disputed information1 the furnisher shall1 before the end of the #bj-;day period beginning on the date on which the furnisher receives notice of an appeal from the consumer1 submit instructions to the consumer reporting agency that the item of information being disputed by the consumer should be deleted from the file of the consumer4 7,e7 ,minimum standards for appeals employees ,upon receipt of a notice of appeal under subparagraph 7,a71 a furnisher shall designate one or more specific employees who-- 7i7 shall be assigned an employee reference number or other employee identifier that can be used by the consumer to discuss the appeal with the specific individuals handling the appeal2 7ii7 shall have direct authority to resolve the dispute that is the subject of the notice of appeal on behalf of the furnisher from the review stage to its completion2 7iii7 shall meet minimum training and ongoing certification requirements at regular intervals1 as established by the ,bureau2 7iv7 may not have been involved in an investigation conducted pursuant to paragraph 7#h72 and 7v7 may not be subject to any requirements linking incentives1 including promotion1 to the number of appeals processed within a certain time period4 7,f7 ,requirements for appeals process ,such employees shall conduct a robust review of the appeal and make a determination regarding the accuracy and completeness of the disputed information by-- 7i7 conducting an independent analysis1 separate from any reinvestigation by a reseller or consumer reporting agency1 of the disputed information2 7ii7 verifying that the personally identifiable information related to the dispute is accurate and complete2 7iii7 analyzing the notice of appeal and all information1 including substantiating documents1 provided by the consumer with the notice of appeal2 7iv7 evaluating the validity of any information submitted by any person that was used by the furnisher in the initial investigation into the dispute2 7v7 verifying that the information being disputed relates to the consumer in whose file the information is located2 7vi7 verifying that the furnisher has a record of the information being disputed2 and 7vii7 applying any additional factors or investigative processes1 as specified by the ,bureau4 7,g7 ,extension of review period ,if a consumer submits additional information related to the appeal after the period of #c business days described in subparagraph 7,c77i7 and before the end of the #bj-;day period described in subparagraph 7,d71 the furnisher shall have an additional #aj business days to complete the review of the appeal4 7,h7 ,notice of appeal results ,not later than #e days after the end of the #bj-;day period described in subparagraph 7,d7 7or the #aj business day extension described under subparagraph 7,g71 as applicable7 the furnisher shall provide the consumer with written notice of the results of the appeal by mail or1 if requested by the consumer1 by other means4 ,the contents of such notice shall include-- 7i7 a statement that the appeal is completed and the date on which it was completed1 the results of the appeal1 and the specific reasons supporting the results of the appeal2 7ii7 a copy of all information relating to the consumer that was used as a basis for deciding the results of the appeal2 7iii7 if the appeal results in any change to the consumer report1 a notification that the consumer shall receive a copy1 free of charge1 of a revised consumer report 7based upon the consumer's file as that file was changed as a result of the appeal7 and a credit score or educational credit score 7if applicable7 from each consumer reporting agency that had been furnished incorrect information2 7iv7 a description of the procedure used to determine the accuracy and completeness of the information1 including the business name1 telephone number1 mailing address1 and ,internet website address 7if applicable71 of any person who provided information that was contacted in connection with such information1 if reasonably available2 7v7 information describing that the consumer may submit a statement1 without charge1 disputing the accuracy or completeness of information in the consumer's file that was the subject of an appeal under this paragraph by submitting a statement directly to each consumer reporting agency that received the information2 and 7vi7 a notification that the consumer may request the furnisher to submit to each consumer reporting agency the consumer's request to furnish notifications pursuant to section #faa7;d7 7relating to furnishing notifications to certain users of consumer reports74 4 7c7 ,technical amendment ,section #fbc7;a77#h77;,a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afhas-#b7;a77#h77;,a77 is amended by striking reinvestigate and inserting investigate4 7d7 ,conforming amendments ,section #fji of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;g7 is amended-- 7#a7 in subsection 7c7-- 7,a7 by striking ,commission and inserting ,bureau each place that term appears2 7,b7 in the subsection heading1 by striking rights ,to obtain and dispute information in consumer reports and ,to obtain credit scores and inserting key consumer reporting rights2 and 7,c7 in paragraph 7#a7-- 7i7 in the heading1 by striking ,commission and inserting ,bureau2 7ii7 in subparagraph 7,b7-- 7,i7 in clause 7ii71 by striking a consumer report without charge under section #fab and inserting consumer reports and credit scores or educational credit scores 7as applicable7 without charge under subsections 7f71 7g71 7i71 or 7j7 or section #fab2 7,,ii7 in clause 7iii71 by inserting or section #fbc after section #faa2 7,,iii7 by striking clauses 7iv7 and 7vi72 7,,iv7 in clause 7v71 by striking and at the end2 7,v7 by inserting after clause 7iii7 the following new clause3 7iv7 the right of a consumer to appeal a determination of a reinvestigation conducted by a consumer reporting agency under section #faa7;h7 or an investigation conducted by a furnisher of information under section #fbc7;a77#aj72 2 and 7,,vi7 by adding at the end the following new clauses3 7vi7 the method and circumstances under which certain consumers can participate in credit rehabilitation or restoration under section #fje;,c1 #fje;,d1 or #fje;,e2 and 7vii7 the method and circumstances under which consumers can obtain a #a-year fraud alert1 #g-year fraud alert1 active duty alert1 or credit freeze as described in section #fje;,a through a consumer reporting agency described under section #fjc7p74 2 7iii7 in subparagraph 7,c71 by inserting and the ,commission after ,bureau2 and 7iv7 by adding at the end the following new subparagraph3 7,d7 ,publication of summary rights ,a consumer reporting agency described under subsection 7p7 or 7x7 of section #fjc shall display in a clear and conspicuous manner1 including on the ,internet website of the consumer reporting agency1 the summary of rights prepared by the ,bureau under this paragraph4 2 and 7#b7 in subsection 7d71 by inserting ,bureau and the before ,commission4 #ajf4 ,requires furnishers to maintain records necessary to verify accuracy of disputes ,section #faa of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;i71 as amended by section #aje7;a77#b71 is further amended by adding at the end the following new subsection3 7i7 ,requirement ,to send revised consumer report to consumer ,upon receiving a notice described in section #fbc7;a77#h77;,e77iv71 each consumer reporting agency shall send to the consumer a revised consumer report and credit score or education credit score 7if applicable7 based upon the consumer's file as that file was changed as a result of the investigation4 4 #ajg4 ,establishes new requirements on consumer reporting agencies when notified of inaccurate or incomplete information from furnishers ,section #fje7;e7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c7 7as so redesignated by section #dja7;a77#b77 is amended to read as follows3 7e7 ,indication of dispute 7#a7 ,in general ,a consumer reporting agency shall include in any consumer report based on the consumer's file a notation identifying any item of information that is currently in dispute by the consumer if-- 7,a7 a consumer disputes the completeness or accuracy of any item of information contained in a consumer's file pursuant to section #faa7;a77#a72 7,b7 a consumer files with a consumer reporting agency an appeal of a reinvestigation pursuant to section #faa7;h72 or 7,c7 the consumer reporting agency is notified by a person that furnished any items of information that are currently in dispute by the consumer that-- 7i7 a consumer disputes the completeness or accuracy of any information furnished by a person to any consumer reporting agency pursuant to paragraph 7#c7 or 7#h7 of section #fbc7;a72 or 7ii7 a consumer submits a notice of appeal under section #fbc7;a77#aj74 7#b7 ,opt out ,a consumer may submit a request to a consumer reporting agency or a person who furnished the information in dispute1 as applicable1 to have the notation described in paragraph 7#a7 omitted from the consumer report4 ,upon receipt of such a request-- 7,a7 by a consumer reporting agency1 such agency shall remove the notation within #a business day2 and 7,b7 by a person who furnished the information in dispute1 such person shall submit such request to each consumer reporting agency to which the person furnished such information within #a business day and such agency shall remove the notation within #a business day of receipt of such request4 4 #ajh4 ,indication of dispute by consumers and use of disputed information ,section #fjg7;b7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;e7 is amended to read as follows3 7b7 ,accuracy and completeness of report 7#a7 ,in general ,in preparing a consumer report1 a consumer reporting agency shall maintain reasonable procedures to ensure maximum possible accuracy and completeness of the information concerning the individual to whom the consumer report relates4 7#b7 ,bureau rule to assure maximum possible accuracy and completeness with credit reporting practices 7,a7 ,rule ,not later than #ah months after the date of enactment of this subsection1 the ,bureau shall issue a final rule establishing the procedures described in paragraph 7#a74 7,b7 ,requirements ,in formulating the rule required under subparagraph 7,a71 the ,bureau shall-- 7i7 develop standards for matching the personally identifiable information included in the consumer's file with the personally identifiable information furnished by the person who provided the information to the consumer reporting agency 7hereafter in this subsection referred to as the furnisher71 including the full name of a consumer1 the date of birth of a consumer1 the full social security number of a consumer1 and any other information that the ,bureau determines would aid in assuring maximum possible accuracy and completeness of such consumer reports2 7ii7 establish processes for a consumer reporting agency to monitor the integrity of the data provided by furnishers and the compliance of furnishers with the requirements of this title2 7iii7 establish processes for a consumer reporting agency to regularly reconcile data relating to accounts in collection1 including those that have not been paid in full1 by specifying the circumstances under which the consumer reporting agency shall remove or suppress negative or adverse information from a consumer's file that has not been updated by a furnisher who is also a debt collector 7as defined in section #hjc of the ,fair ,debt ,collection ,practices ,act7 within the time period established by the ,bureau2 7iv7 establish procedures to require each consumer reporting agency to review and monitor the quality of information received from any source1 including information from public records1 by regularly and on an ongoing basis comparing the information received to the information available from the original source and ensuring that the information received is the most current information2 7v7 develop standards and procedures for consumer reporting agencies to identify furnishers that repeatedly fail to provide accurate and complete information1 to take corrective action against such furnishers1 and to reject information submitted by such furnishers2 7vi7 develop standards and procedures for consumer reporting agencies to adopt regarding collection of public record data1 including standards and procedures to consider the ultimate data source1 how the public record information is filed and its availability and accessibility1 and whether information relating to the satisfaction of judgments or other updates to the public record are available on a reasonably timely basis from a particular source2 and 7vii7 establish any other factors1 procedures1 or processes determined by the ,bureau to be necessary to assist consumer reporting agencies in achieving maximum possible accuracy and completeness of the information in consumer reports4 7#c7 ,corrective action for furnishers that repeatedly furnish inaccurate or incomplete information ,upon identifying a furnisher that repeatedly fails to furnish accurate1 complete1 or verifiable information to consumer reporting agencies1 the ,bureau shall-- 7,a7 ensure the prompt removal of any adverse information relating to a consumer's accounts submitted by such furnisher2 and 7,b7 take corrective action1 which may include-- 7i7 mandatory revised training and training materials for the staff of the furnisher regarding the furnishing of accurate and complete information2 7ii7 sharing industry best practices and procedures regarding accuracy and completeness2 or 7iii7 temporarily prohibiting a furnisher from providing information to a consumer reporting agency4 4 #aji4 ,inclusion of public record data sources in consumer reports ,section #fje7;d7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c7d77 is amended by adding at the end the following3 7#c7 ,public record data source ,any consumer reporting agency that furnishes a consumer report that contains public record data shall also include in such report the source from which that data was obtained1 including the particular court1 if any1 and the date that the data was initially reported or publicized4 4 #aaj4 ,injunctive relief for victims 7a7 ,in general ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq47 is amended-- 7#a7 in section #faf-- 7,a7 in subsection 7a71 by amending the subsection heading to read as follows3 ,damages2 7,b7 by redesignating subsections 7c7 and 7d7 as subsections 7d7 and 7e71 respectively2 and 7,c7 by inserting after subsection 7b7 the following new subsection3 7c7 ,injunctive relief ,in addition to any other remedy set forth in this section1 a court may award injunctive relief to require compliance with the requirements imposed under this title with respect to any consumer4 ,in the event of any successful action for injunctive relief under this subsection1 the court may award to the prevailing party costs and reasonable attorney fees 7as determined by the court7 incurred during the action by such party4 2 and 7#b7 in section #fag-- 7,a7 in subsection 7a71 by amending the subsection heading to read as follows3 ,damages2 7,b7 by redesignating subsection 7b7 as subsection 7c72 and 7,c7 by inserting after subsection 7a7 the following new subsection3 7b7 ,injunctive relief ,in addition to any other remedy set forth in this section1 a court may award injunctive relief to require compliance with the requirements imposed under this title with respect to any consumer4 ,in the event of any successful action for injunctive relief under this subsection1 the court may award to the prevailing party costs and reasonable attorney fees 7as determined by the court7 incurred during the action by such party4 4 7b7 ,enforcement by ,federal ,trade ,commission ,section #fba7;a77#b77;,a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afhas7a77#b77;,a77 is amended-- 7#a7 by amending the subparagraph heading to read as follows3 ,negligent1 willful1 or knowing violations2 and 7#b7 by inserting negligent1 willful1 or before knowing4 ,,ii ,restricting the use of credit checks for employment decisions #bja4 ,bans the use of credit information for most employment decisions 7a7 ,in general ,section #fjd of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;b7 is amended-- 7#a7 in subsection 7a77#c77;,b71 by inserting 1 subject to the requirements of subsection 7b7 after purposes2 and 7#b7 in subsection 7b7-- 7,a7 in paragraph 7#a7-- 7i7 by amending the paragraph heading to read as follows3 ,use of consumer reports for employment purposes2 7ii7 in subparagraph 7,a71 by redesignating clauses 7i7 and 7ii7 as subclauses 7,i7 and 7,,ii71 respectively 7and conforming the margins accordingly72 7iii7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively 7and conforming the margins accordingly72 7iv7 by striking the period at the end of clause 7ii7 7as so redesignated7 and inserting 2 and2 7v7 by striking agency may furnish and inserting agency-- 7,a7 may furnish 2 and 7vi7 by adding at the end the following new subparagraph3 7,b7 except as provided in paragraph 7#e71 may not furnish a consumer report with respect to any consumer in which any information contained in the report bears on the consumer's creditworthiness1 credit standing1 or credit capacity4 2 and 7,b7 by adding at the end the following new paragraphs3 7#e7 ,requirements for consumer reports bearing on the consumer's creditworthiness1 credit standing1 or credit capacity 7,a7 ,in general ,a person may use a consumer report with respect to any consumer in which any information contained in the report bears on the consumer's creditworthiness1 credit standing1 or credit capacity only if-- 7i7 either-- 7,i7 the person is required to obtain the report by a ,federal1 ,state1 or local law2 or 7,,ii7 the information contained in the report is being used with respect to a national security investigation 7as defined in paragraph 7#d77;,d772 7ii7 none of the cost associated with obtaining the consumer report will be passed on to the consumer to whom the report relates2 and 7iii7 the information contained in the consumer report will not be disclosed to any other person other than-- 7,i7 in an aggregate format that protects a consumer's personally identifiable information2 or 7,,ii7 as may be necessary to comply with any applicable ,federal1 ,state1 or local equal employment opportunity law or regulation4 7,b7 ,disclosures ,a person who procures1 or causes to be procured1 a consumer report described in subparagraph 7,a7 for employment purposes shall1 in the disclosure made pursuant to paragraph 7#b71 include-- 7i7 an explanation that a consumer report is being obtained for employment purposes2 7ii7 the reasons for obtaining such a report2 and 7iii7 the citation to the applicable ,federal1 ,state1 or local law or regulation described in subparagraph 7,a77i77,i74 7,c7 ,adverse actions ,in using a consumer report described in subparagraph 7,a7 for employment purposes and before taking an adverse action based in whole or in part on the report1 the person intending to take such adverse action shall1 in addition to the information described in paragraph 7#c71 provide to the consumer to whom the report relates-- 7i7 the name1 address1 and telephone number of the consumer reporting agency that furnished the report 7including1 for a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis1 a toll-free telephone number established by such agency72 7ii7 the date on which the report was furnished2 and 7iii7 the specific factors from the report upon which the adverse action 7as defined in section #fjc7k77#a77;,b77ii77 was based4 7,d7 ,national security investigations ,the requirements of paragraph 7#d7 shall apply to a consumer report described under subparagraph 7,a74 7,e7 ,non-circumvention ,with respect to a consumer report in which any information contained in the report bears on the consumer's creditworthiness1 credit standing1 or credit capacity1 if a person is prohibited from using the consumer report pursuant to subparagraph 7,a71 such person may not1 directly or indirectly1 either orally or in writing1 require1 request1 suggest1 or cause any employee or prospective employee to submit such information to the person as a condition of employment4 7,f7 ,non-waiver ,a consumer may not waive the requirements of this paragraph with respect to a consumer report4 7#f7 ,rule of construction ,nothing in this subsection shall be construed to require a consumer reporting agency to prevent a ,federal1 ,state1 or local law enforcement agency from accessing information in a consumer report to which the law enforcement agency could otherwise obtain access4 4 7b7 ,technical amendment ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq47 is amended by striking section #fjd7;b77#d77;,e77i7 each place such term appears and inserting section #fjd7;b77#d77;,d77i74 ,,iii ,rehabilitating the credit standing of struggling private education loan borrowers #cja4 ,removes adverse information for certain defaulted or delinquent private education loan borrowers who demonstrate a history of loan repayment 7a7 ,in general ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq471 as amended by section #dje1 is further amended by inserting after section #fje;,d the following new section3 #fje;,e4 ,credit rehabilitation for distressed private education loan borrowers who demonstrate a history of loan repayment 7a7 ,in general ,a consumer reporting agency may not furnish any consumer report containing any adverse item of information relating to a delinquent or defaulted private education loan of a borrower if the borrower has rehabilitated the borrower's credit with respect to such loan by making #i on-time monthly payments 7in accordance with the terms and conditions of the borrower's original loan agreement or any other repayment agreement that antedates the original agreement7 during a period of #aj consecutive months on such loan after the date on which the delinquency or default occurred4 7b7 ,interruption of #aj-,month period for certain consumers facing unusual extenuating life events 7#a7 ,permissible interruption of the #aj-month period ,a borrower may stop making consecutive monthly payments and be granted a grace period after which the #aj-month period described in subsection 7a7 shall resume4 ,such grace period shall be provided under the following circumstances3 7,a7 ,with respect to a borrower who is a member of the ,armed ,forces entitled to incentive pay for the performance of hazardous duty under section #cja of title #cg1 ,united ,states ,code1 hazardous duty pay under section #cea of such title1 or other assignment or special duty pay under section #ceb of such title1 the grace period shall begin on the date on which the borrower begins such assignment or duty and end on the date that is #f months after the completion of such assignment or duty4 7,b7 ,with respect to a borrower who resides in an area affected by a major disaster or emergency declared under the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eaba et seq471 the grace period shall begin on the date on which the major disaster or emergency was declared and end on the date that is #c months after such date4 7#b7 ,other circumstances 7,a7 ,in general ,the ,bureau may allow a borrower demonstrating hardship to stop making consecutive monthly payments and be granted a grace period after which the #aj-month period described in subsection 7a7 shall resume4 7,b7 ,borrower demonstrating hardship defined ,in this paragraph1 the term borrower demonstrating hardship means a borrower or a class of borrowers who1 as determined by the ,bureau1 is facing or has experienced unusual extenuating life circumstances or events that result in severe financial or personal barriers such that the borrower or class or borrowers does not have the capacity to comply with the requirements of subsection 7a74 7c7 ,procedures ,the ,bureau shall establish procedures to implement the credit rehabilitation described in this section1 including-- 7#a7 the manner1 content1 and form for requesting credit rehabilitation2 7#b7 the method for validating that the borrower is satisfying the requirements of subsection 7a72 7#c7 the manner1 content1 and form for notifying the private educational loan holder of-- 7,a7 the borrower's participation in credit rehabilitation under subsection 7a72 7,b7 the requirements of subsection 7d72 and 7,c7 the restrictions of subsection 7f72 7#d7 the manner1 content1 and form for notifying a consumer reporting agency of-- 7,a7 the borrower's participation in credit rehabilitation under subsection 7a72 and 7,b7 the requirements of subsection 7d72 7#e7 the method for verifying whether a borrower qualifies for the grace period described in subsection 7b72 7#f7 the manner1 content1 and form of notifying a consumer reporting agency and private educational loan holder that a borrower was granted a grace period2 and 7#g7 the method for a borrower to demonstrate that the borrower has successfully satisfied the requirements under subsection 7a7 and for notifying a consumer reporting agency and private educational loan holder4 7d7 ,standardized reporting codes ,a consumer reporting agency shall develop standardized reporting codes for use by any private educational loan holder to identify and report a borrower's status of making and completing #i on-time monthly payments during a period of #aj consecutive months on a delinquent or defaulted private education loan1 including codes specifying the grace period described in subsection 7b7 and any agreement to modify monthly payments4 ,such codes shall not appear on any report provided to a third party1 and shall be removed from the consumer's credit report upon the consumer's completion of the rehabilitation period under this section4 7e7 ,eliminating barriers to credit rehabilitation ,a consumer report in which a private educational loan holder furnishes the standardized reporting codes described in subsection 7d7 to a consumer reporting agency1 or in which a consumer reporting agency includes such codes1 shall be deemed to comply with the requirements for accuracy and completeness required under sections #fbc7;a77#a7 and #fcj4 7f7 ,prohibition on civil actions for consumers pursuing rehabilitation ,a private educational loan holder may not commence or proceed with any civil action against a borrower with respect to a delinquent or defaulted loan during the period of rehabilitation if the loan holder has been notified-- 7#a7 under subsection 7c77#c7 of a borrower's intent to participate in rehabilitation2 7#b7 under subsection 7c77#f7 that a borrower was granted the grace period2 or 7#c7 under subsection 7c77#g7 that the borrower has successfully satisfied the requirements under subsection 7a74 7g7 ,rules of construction 7#a7 ,application to subsequent default or delinquency ,a borrower who satisfies the requirements under subsection 7a7 shall be eligible for additional credit rehabilitation described in subsection 7a7 with respect to any subsequent default or delinquency of the borrower on the rehabilitated private education loan4 7#b7 ,interruption of the consecutive payment period requirement ,the grace period described in subsection 7b77#a77;,a7 shall not apply if any regulation promulgated under section #ihg of title #aj1 ,united ,states ,code 7commonly known as the ,military ,lending ,act71 or the ,servicemembers ,civil ,relief ,act 7#ej ,u4,s4,c4 ,app4 #eja et seq47 allows for a grace period or other interruption of the #aj-month period described in subsection 7a7 and such grace period or other interruption is longer than the period described in subsection 7b77#a77;,a7 or otherwise provides greater protection or benefit to the borrower who is a member of the ,armed ,forces4 4 7b7 ,table of contents amendment ,the table of contents of the ,fair ,credit ,reporting ,act is amended by inserting after the item relating to section #fje;,d 7as added by section #dje7 the following new item3 #fje;,e4 ,credit rehabilitation for distressed private education loan borrowers who demonstrate a history of loan repayment4 4 #cjb4 ,private education loan definitions ,section #fjc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a7 is amended by adding at the end the following new subsection3 7z7 ,private education loan definitions ,the terms private education loan and private educational lender have the meanings given such terms1 respectively1 in section #adj7;a7 of the ,truth in ,lending ,act4 4 ,,iv ,restoring the impaired credit of victims of predatory activities and unfair consumer reporting practices #dja4 ,shortens the time period that most adverse credit information stays on consumer reports 7a7 ,in general ,section #fje of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c7 is amended-- 7#a7 in subsection 7a7-- 7,a7 by striking ,except as authorized under subsection 7b71 no and inserting ,no2 7,b7 in paragraph 7#a71 by striking #aj years and inserting #g years2 7,c7 in paragraph 7#b71 by striking ,civil suits1 civil judgments1 and records and inserting ,records2 7,d7 in paragraph 7#c71 by striking seven years and inserting #d years2 7,e7 in paragraph 7#d71 by striking seven years and inserting #d years1 except as provided in paragraph 7#h71 7#aj71 7#aa71 7#ab71 or 7#ac71 or as required by section #fje;,c1 #fje;,d1 #fje;,e1 or #fje;,f2 7,f7 in paragraph 7#e7-- 7i7 by striking 1 other than records of convictions of crimes2 and 7ii7 by striking seven years and inserting #d years1 except as required by section #fje;,c1 #fje;,d1 #fje;,e1 or #fje;,f2 and 7,g7 by adding at the end the following new paragraphs3 7#g7 ,civil suits and civil judgments 7except as provided in paragraph 7#h77 that1 from date of entry1 antedate the report by more than #d years or until the governing statute of limitations has expired1 whichever is the longer period4 7#h7 ,a civil suit or civil judgment-- 7,a7 brought by a private education loan holder that1 from the date of successful completion of credit restoration or rehabilitation in accordance with the requirements of section #fje;,d or #fje;,e1 antedates the report by #de calendar days2 or 7,b7 brought by a lender with respect to a covered residential mortgage loan that antedates the report by #de calendar days4 7#i7 ,records of convictions of crimes which antedate the report by more than #g years4 7#aj7 ,any other adverse item of information relating to the collection of debt that did not arise from a contract or an agreement to pay by a consumer1 including fines1 tickets1 and other assessments1 as determined by the ,bureau1 excluding tax liability4 2 7#b7 by striking subsection 7b7 and redesignating subsections 7c7 through 7h7 as subsections 7b7 through 7g71 respectively2 and 7#c7 in subsection 7b7 7as so redesignated71 by striking #g-year period referred to in paragraphs 7#d7 and 7#f7 and inserting #d-year period referred to in paragraphs 7#d7 and 7#e74 7b7 ,conforming amendments ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha7 is amended-- 7#a7 in section #faf7;d71 by striking section #fje7;g7 each place that term appears and inserting section #fje7;f72 and 7#b7 in section #fbe7;b77#e77;,a71 by striking section #fje7;g7 and inserting section #fje7;f74 #djb4 ,mandates the expedited removal of fully paid or settled debt from consumer reports ,section #fje7;a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c7a771 as amended by section #dja7;a77#a71 is further amended by adding at the end the following new paragraph3 7#aa7 ,any other adverse item of information related to a fully paid or settled debt that had been characterized as delinquent1 charged off1 or in collection which1 from the date of payment or settlement1 antedates the report by more than #de calendar days4 4 #djc4 ,imposes restrictions on the appearance of medical collections on consumer reports and requires the expedited removal of fully paid or settled medical collections from consumer reports 7a7 ,removal of fully paid or settled medical debt from consumer reports ,section #fje7;a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c7a771 as amended by section #djb1 is further amended by adding at the end the following new paragraph3 7#ab7 ,any other adverse item of information related to a fully paid or settled debt arising from the receipt of medical services1 products1 or devices that had been characterized as delinquent1 charged off1 or in collection which1 from the date of payment or settlement1 antedates the report by more than #de calendar days4 4 7b7 ,establishing an extended time period before medical debt information may be reported ,section #fje7;a7 of such ,act is further amended by adding at the end the following new paragraph3 7#ac7 ,any information related to a debt arising from the receipt of medical services1 products1 or devices1 if the date on which such debt was placed for collection1 charged to profit or loss1 or subjected to any similar action antedates the report by less than #ahj calendar days4 4 7c7 ,technical amendment ,section #fjd7;g77#a77;,c7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;b7g77#a77;,c77 is further amended by striking devises and inserting devices4 #djd4 ,provides credit restoration for victims of predatory mortgage lending and servicing 7a7 ,in general ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq47 is amended by inserting after section #fje;,b the following new section3 #fje;,c4 ,credit restoration for victims of predatory mortgage lending 7a7 ,in general ,a consumer reporting agency may not furnish any consumer report containing any adverse item of information relating to a covered residential mortgage loan 7including the origination and servicing of such a loan1 any loss mitigation activities related to such a loan1 and any foreclosure1 deed in lieu of foreclosure1 or short sale related to such a loan71 if the action or inaction to which the item of information relates-- 7#a7 resulted from an unfair1 deceptive1 or abusive act or practice1 or a fraudulent1 discriminatory1 or illegal activity of a financial institution1 as determined by the ,bureau or a court of competent jurisdiction2 or 7#b7 is related to an unfair1 deceptive1 or abusive act1 practice1 or a fraudulent1 discriminatory1 or illegal activity of a financial institution that is the subject of a settlement agreement initiated on behalf of a consumer or consumers and that is between the financial institution and an agency or department of a local1 ,state1 or ,federal ,government1 regardless of whether such settlement includes an admission of wrongdoing4 7b7 ,covered residential mortgage loan defined ,in this section1 the term covered residential mortgage loan means any loan primarily for personal1 family1 or household use that is secured by a mortgage1 deed of trust1 or other equivalent consensual security interest on a dwelling 7as defined in section #ajc7w7 of the ,truth in ,lending ,act71 including a loan in which the proceeds will be used for-- 7#a7 a manufactured home 7as defined in section #fjc of the ,housing and ,community ,development ,act of #aigd 7#db ,u4,s4,c4 #edjb772 7#b7 any installment sales contract1 land contract1 or contract for deed on a residential property2 or 7#c7 a reverse mortgage transaction 7as defined in section #ajc of the ,truth in ,lending ,act74 4 7b7 ,table of contents amendment ,the table of contents of the ,fair ,credit ,reporting ,act is amended by inserting after the item relating to section #fje;,b the following new item3 #fje;,c4 ,credit restoration for victims of predatory mortgage lending4 4 7c7 ,effective date ,the amendments made by this section shall take effect at the end of the #ah-month period beginning on the date of the enactment of this ,act4 #dje4 ,provides credit relief for private education loans borrowers who were defrauded or mislead by proprietary education institution or career education programs 7a7 ,in general ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq471 as amended by section #djd1 is further amended by inserting after section #fje;,c the following new section3 #fje;,d4 ,private education loan credit restoration for defrauded student borrowers who attend certain proprietary educational institution or career education programs 7a7 ,process for certification as a qualifying private education loan borrower 7#a7 ,in general ,a consumer1 or an individual acting on behalf of or as a personal representative of the consumer or a class of consumers1 may submit a request to the ,bureau1 along with a defraudment claim1 to be certified as a qualifying private education loan borrower with respect to a private education loan4 7#b7 ,certification ,the ,bureau shall certify a consumer described in paragraph 7#a7 as a qualifying private education loan borrower with respect to a private education loan if the ,bureau or a court of competent jurisdiction determines that the consumer has a valid defraudment claim with respect to such loan4 7b7 ,removal of adverse information ,upon receipt of a notice described in subsection 7d77#e71 a consumer reporting agency shall remove any adverse information relating to any private education loan with respect to which a consumer is a qualifying private education loan borrower from any consumer report within #de calendar days of receipt of such notification4 7c7 ,disclosure ,the ,bureau shall disclose the results of a certification determination in writing to the consumer that provides a clear and concise explanation of the basis for the determination of whether such consumer or class of consumers is a qualifying private education loan borrower with respect to a private education loan and1 as applicable1 an explanation of the consumer's right to have adverse information relating to such loan removed from their consumer report by a consumer reporting agency4 7d7 ,procedures ,the ,bureau shall-- 7#a7 establish procedures for a consumer or an individual acting on behalf of or as a personal representative of the consumer or a class of consumers to submit a request described in subsection 7a72 7#b7 establish procedures to efficiently review1 accept1 and process such a request2 7#c7 develop ongoing outreach initiatives and education programs to inform consumers or a class of consumers of the circumstances under which such consumer or class may be eligible to be certified as a qualifying private education loan borrower with respect to a private education loan2 7#d7 establish procedures1 including the manner1 form1 and content of the notice informing a private educational loan holder of the prohibition on reporting any adverse information relating to a private education loan with respect to which a consumer is a qualifying private education loan borrower2 and 7#e7 establish procedures1 including the manner1 form1 and content of the notice informing a consumer reporting agency of the obligation to remove any adverse information as described in subsection 7c74 7e7 ,standardized reporting codes ,a consumer reporting agency shall develop standardized reporting codes for use by private education loan holders to identify and report a qualifying private education loan borrower's status of a request to remove any adverse information relating to any private education loan with respect to which such consumer is a qualifying private education loan borrower4 ,a consumer report in which a person furnishes such codes shall be deemed to comply with the requirements for accuracy and completeness required under sections #fbc7;a77#a7 and #fcj4 ,such codes shall not appear on any report provided to a third party1 and shall be removed from the consumer's credit report upon the successful restoration of the consumer's credit under this section4 7f7 ,defraudment claim defined ,for purposes of this section1 the term defraudment claim means a claim made with respect to a consumer who is a borrower of a private education loan with respect to a proprietary educational institution or career education program in which the consumer or an individual acting on behalf of or as a personal representative of the consumer or a class of consumers alleges that-- 7#a7 the proprietary educational institution or career education program-- 7,a7 engaged in an unfair1 deceptive1 or abusive act or practice1 or a fraudulent1 discriminatory1 or illegal activity-- 7i7 as defined by ,state law of the ,state in which the proprietary educational institution or career education program is headquartered or maintains or maintained significant operations2 or 7ii7 under ,federal law2 7,b7 is the subject of an enforcement order1 a settlement agreement1 a memorandum of understanding1 a suspension of tuition assistance1 or any other action relating to an unfair1 deceptive1 or abusive act or practice that is between the proprietary educational institution or career education program and an agency or department of a local1 ,state1 or ,federal ,government2 or 7,c7 misrepresented facts to students or accrediting agencies or associations about graduation or gainful employment rates in recognized occupations or failed to provide the coursework necessary for students to successfully obtain a professional certification or degree from the proprietary educational institution or career education program2 or 7#b7 the consumer or an individual acting on behalf of or as a personal representative of the consumer or a class of consumers has submitted a valid defense to repayment claim with respect to such loan1 as determined by the ,secretary of ,education4 4 7b7 ,table of contents amendment ,the table of contents of the ,fair ,credit ,reporting ,act is amended by inserting after the item relating to section #fje;,c 7as added by section #djd7 the following new item3 #fje;,d4 ,private education loan credit restoration for defrauded student borrowers who attend certain proprietary educational institution or career education programs4 4 #djf4 ,establishes right for victims of financial abuse to have adverse information associated with an abuser's fraudulent activity removed from their consumer reports 7a7 ,in general ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq471 as amended by section #cja1 is further amended by inserting after section #fje;,e the following new section3 #fje;,f4 ,financial abuse prevention ,for a consumer who is the victim of intentionally abusive or harmful financial behavior1 as determined by a court of competent jurisdiction including a family court1 juvenile court1 or other court with personal jurisdiction1 that was conducted by a spouse1 family or household member1 caregiver1 or person with whom such consumer had a dating relationship in a manner which resulted in the inclusion of an adverse item of information on the consumer report of the consumer1 and the consumer did not participate in or consent to such behavior1 the consumer may apply to a court of competent jurisdiction1 including a family court1 juvenile court1 or other court with personal jurisdiction1 for an order to require the removal of such adverse information from the consumer's file maintained by any consumer reporting agency4 4 7b7 ,table of contents amendment ,the table of contents of the ,fair ,credit ,reporting ,act is amended by inserting after the item relating to section #fje;,e 7as added by section #cja7 the following new item3 #fje;,f4 ,financial abuse prevention4 4 #djg4 ,prohibits treatment of credit restoration or rehabilitation as adverse information ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq47 is amended-- 7#a7 by adding at the end the following new section3 #fcj4 ,prohibition of certain factors related to ,federal credit restoration or rehabilitation 7a7 ,restriction on credit scoring models ,a credit scoring model may not-- 7#a7 take into consideration1 in a manner adverse to a consumer's credit score or educational credit score1 any information in a consumer report concerning the consumer's participation in credit restoration or rehabilitation under section #fje;,c1 #fje;,d1 #fje;,e1 or #fje;,f2 or 7#b7 treat negatively1 in a manner adverse to a consumer's credit score or educational credit score1 the absence of payment history data for an existing account1 whether the account is open or closed1 where the absence of such information is the result of a consumer's participation in credit restoration or rehabilitation under section #fje;,c1 #fje;,d1 #fje;,e1 or #fje;,f4 7b7 ,restriction on persons obtaining consumer reports ,a person who obtains a consumer report may not-- 7#a7 take into consideration1 in a manner adverse to a consumer1 any information in a consumer report concerning the consumer's participation in credit restoration or rehabilitation under section #fje;,c1 #fje;,d1 #fje;,e1 or #fje;,f2 or 7#b7 treat negatively the absence of payment history data for an existing account1 whether the account is open or closed1 where the absence of such information is the result of a consumer's participation in credit restoration or rehabilitation under section #fje;,c1 #fje;,d1 #fje;,e1 or #fje;,f4 7c7 ,accuracy and completeness ,if a person who furnishes information to a consumer reporting agency requests the removal of information from a consumer report or a consumer reporting agency removes information from a consumer report in compliance with the requirements under section #fje;,c1 #fje;,d1 #fje;,e1 or #fje;,f1 or such information was removed pursuant at section #fje7;a77#aa71 such report shall be deemed to satisfy the requirements for accuracy and completeness with respect to such information4 7d7 ,prohibition related to adverse actions and risk-,based pricing decisions ,no person shall use information related to a consumer's participation in credit restoration or rehabilitation under section #fje;,c1 #fje;,d1 #fje;,e1 or #fje;,f in connection with any determination of-- 7#a7 the consumer's eligibility or continued eligibility for an extension of credit2 7#b7 the terms and conditions offered to a consumer regarding an extension of credit2 or 7#c7 an adverse action made for employment purposes4 2 and 7#b7 in the table of contents for such ,act1 by adding at the end the following new item3 #fcj4 ,prohibition of certain factors related to ,federal credit restoration or rehabilitation4 4 ,v ,monitoring the development and use of credit scores #eja4 ,establishes clear ,federal oversight of the development of credit scoring models by the ,bureau ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq471 as amended by section #djg1 is further amended-- 7#a7 by adding at the end the following new section3 #fca4 ,credit scoring models 7a7 ,validated credit scoring models ,not later than #a year after the date of enactment of this section1 the ,bureau shall issue final regulations applicable to a person that creates1 maintains1 or purchases credit scoring models used in making credit decisions to establish standards for validating the accuracy and predictive value of all such credit scoring models1 both before release for initial use and at regular intervals thereafter1 for as long as such credit scoring models are made available for purchase or use by such person4 7b7 ,prohibition ,at least once every #b years1 the ,bureau shall conduct a review of credit scoring models to determine whether the use of any particular factors1 or the weight or consideration given to certain factors by credit scoring models1 is inappropriate1 including if such factors do not enhance or contribute to the accuracy and predictive value of the models4 ,upon the conclusion of its review1 the ,bureau may prohibit a person described in subsection 7a7 from weighing1 considering1 or including certain factors in1 or making available for purchase or use1 certain credit scoring models or versions1 as the ,bureau determines appropriate4 7c7 ,compliance ,the ,bureau is authorized to enforce compliance with this section by a person described in subsection 7a74 2 and 7#b7 in the table of contents for such ,act1 by inserting after the item relating to section #fcj 7as added by section #djg7 the following new item3 #fca4 ,credit scoring models4 4 #ejb4 ,mandates ongoing review and reports to ,congress by the ,federal ,housing ,finance ,agency on using additional1 alternative1 and updated credit scoring models as part of the criteria for loans purchased by ,fannie ,mae and ,freddie ,mac 7a7 ,biennial review ,the ,director of the ,federal ,housing ,finance ,agency1 in consultation with the ,director of the ,bureau of ,consumer ,financial ,protection1 shall review the advantages and disadvantages of implementing additional1 alternative1 or updated credit scoring models 7as defined in section #fjc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a77 used to establish the eligibility criteria for loans purchased by the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation4 ,such review shall analyze-- 7#a7 the impact of using such credit scoring models on the accuracy and predictive value of the performance of loans purchased by the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation2 7#b7 the ability of the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation to more effectively manage credit risks by adopting additional1 alternative1 or updated credit scoring models2 7#c7 any potential operational risks associated with the reliance on one single provider of credit scores2 7#d7 the availability and affordability of covered residential mortgage loans1 as defined in section #fje;,c of the ,fair ,credit ,reporting ,act2 7#e7 the interests of taxpayers2 and 7#f7 any other factors determined relevant by the ,director of the ,federal ,housing ,finance ,agency or the ,director of the ,bureau of ,consumer ,financial ,protection4 7b7 ,public participation ,the ,director of the ,federal ,housing ,finance ,agency shall seek public input about the methodology and research design of the review described in subsection 7a71 including from organizations and experts representing racial and ethnic minority communities and populations1 fair lending organizations1 civil rights organizations1 and consumer and community groups that represent depository institutions and credit unions that primarily serve traditionally underserved communities4 7c7 ,reports ,not later than the end of the #ah-month period beginning on the date of the enactment of this ,act1 and every #b years thereafter1 the ,director of the ,federal ,housing ,finance ,agency shall issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing all findings and determinations made in carrying out the review required under subsection 7a74 7d7 ,implementation of findings ,if the ,director of the ,federal ,housing ,finance ,agency determines1 in consultation with the ,bureau1 that the advantages of implementing additional1 alternative1 or updated credit scoring models outweigh the disadvantages1 the ,director shall promptly require the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation to revise their seller-servicer guidelines to allow for the use of such additional1 alternative1 or updated credit scoring models1 and any other guidelines as the ,director determines appropriate1 in a manner consistent with the determination of the ,director4 #ejc4 ,requires a ,bureau study and report to ,congress on the impact of using non-traditional data 7a7 ,study ,the ,bureau of ,consumer ,financial ,protection shall carry out a study to assess the impact 7including the availability and affordability of credit and other noncredit decisions1 the potential positive and negative impacts on a consumer's credit scores1 and any unintended consequences7 of using traditional modeling techniques or alternative modeling techniques to analyze non-traditional data from a consumer report and the inclusion of non-traditional data on consumer reports on the following3 7#a7 ,consumers with no or minimal traditional credit history4 7#b7 ,traditionally underserved communities and populations4 7#c7 ,consumers residing in rural areas4 7#d7 ,consumers residing in urban areas4 7#e7 ,racial and ethnic minorities and women4 7#f7 ,consumers across various income strata1 particularly consumers earning below #abj percent of the area median income 7as defined by the ,secretary of ,housing and ,urban ,development74 7#g7 ,immigrants1 refugees1 and non-permanent residents4 7#h7 ,minority financial institutions 7as defined under section #cjh7;b7 of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note77 and community financial institutions4 7#i7 ,consumers residing in federally assisted housing1 including consumer receiving ,federal rental subsidies4 7b7 ,additional considerations ,the study required under subsection 7a7 shall also consider the impact of the inclusion of non-traditional data on a consumer report and the use of traditional modeling techniques or alternative modeling techniques with respect to-- 7#a7 the privacy1 security1 and confidentiality the consumer's financial1 medical1 and personally identifiable information2 7#b7 the consumer's control over how such information may or will be used or considered2 7#c7 the consumer's understanding of how such information may be used or considered and the ease with which the consumer could decide to restrict or prohibit such use or consideration2 and 7#d7 the potential discriminatory effect or disparate outcomes the use or consideration of such information may have4 7c7 ,report ,not later than #a year after the date of the enactment of this ,act1 the ,bureau of ,consumer ,financial ,protection shall issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing all findings and determinations1 including any recommendations for any legislative or regulatory changes1 made in carrying out the study required under subsection 7a74 7d7 ,definitions ,in this section3 7#a7 ,alternative modeling techniques ,the term alternative modeling techniques means statistical and mathematical techniques that are not traditional modeling techniques1 including decision trees1 random forests1 artificial neutral networks1 nearest neighbor1 genetic programming1 and boosting algorithms4 7#b7 ,consumer report ,the term consumer report has the meaning given such term in section #fjc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a74 7#c7 ,non-traditional data ,the term non-traditional data means data related to telecommunications1 utility payments1 rent payments1 remittances1 wire transfers1 data not otherwise regularly included in consumer reports issued by consumer reporting agencies described under section #fjc7p71 and such other items as the ,bureau of ,consumer ,financial ,protection deems appropriate4 7#d7 ,traditional modeling techniques ,the term traditional modeling techniques means statistical and mathematical techniques 7including models1 algorithms1 linear and logistic regression methods1 and their outputs7 that are traditionally used in automated underwriting processes4 ,,vi ,providing greater consumer access to and understanding of consumer reports and credit scores #fja4 ,credit score and educational credit score definitions 7a7 ,in general ,section #fjc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a71 as amended by section #cjb1 is further amended by adding at the end the following new subsection3 7aa7 ,credit score and educational credit score definitions 7#a7 ,credit score ,the term credit score means a numerical value or a categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan or extends credit to predict the likelihood of certain credit behaviors1 including default1 as determined by the ,bureau4 7#b7 ,educational credit score ,the term educational credit score means a numerical value or categorization derived from a statistical tool or modeling system based upon information from a consumer report that assists consumers in understanding how a lender or creditor may view the consumer's creditworthiness in deciding whether to make a loan or extend credit to that consumer4 7#c7 ,key factors ,the term key factors means relevant elements or reasons affecting the credit score for the particular individual1 listed in the order of importance based on the effect of each element or reason on the credit score or educational credit score4 7#d7 ,credit scoring model ,the term credit scoring model means a scoring algorithm1 formula1 model1 program1 or mechanism used to generate a credit score or an educational credit score4 4 7b7 ,conforming amendments ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq47 is amended-- 7#a7 in section #fje7;c77#b7 7as so redesignated by section #ajc71 by striking 7as defined in section #fji7;f77#b77;,b772 and 7#b7 in section #fae-- 7,a7 by striking as defined in section #fji7;f77#b77;,a7 each place that term appears2 and 7,b7 by striking set forth in subparagraphs 7,b7 through 7,e7 of section #fji7;f77#a7 and inserting with respect to a credit score described in section #fji7;f77#b71 if available each place that term appears4 #fjb4 ,expands explanatory information given to consumers about how scores are calculated ,section #fji7;f7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;g7f77 is amended to read as follows3 7f7 ,disclosure of credit score and educational credit score by consumer reporting agencies 7#a7 ,in general ,upon the request of a consumer for a credit score or educational credit score1 a consumer reporting agency shall supply to the consumer a statement-- 7,a7 containing-- 7i7 a current credit score at the time of the request generated using a commonly used credit scoring model to generate credit scores1 subject to regulations of the ,bureau2 7ii7 an educational credit score at the time of the request1 if it is not practicable to generate such a credit score1 as determined by the ,bureau2 or 7iii7 an explanation that the consumer's file does not have sufficient information from which to generate such a credit score or educational credit score2 and 7,b7 with respect to each previous credit score in the file of the consumer-- 7i7 the date on which the credit score was generated2 7ii7 the name of any entity that the credit score was provided to2 and 7iii7 the credit score itself4 7#b7 ,requirements ,a statement provided under clause 7i7 or 7ii7 of paragraph 7#a77;,a7 shall include-- 7,a7 a minimum of #d key factors1 if available1 that adversely affected the credit score or educational credit score1 except that if one of the key factors consists of the number of enquiries made with respect to a consumer report1 that factor shall be provided to the consumer in addition to the factors required by this subparagraph2 7,b7 to the extent possible1 specific actions a consumer could take with respect to each key factor listed in subparagraph 7,a7 to improve the consumer's credit score or educational credit score2 7,c7 a minimum of #d key factors1 if available1 that positively affected the credit score or educational credit score2 7,d7 the range of possible credit scores or educational credit scores under the credit scoring model used2 7,e7 the distribution of credit scores or educational credit scores among consumers who are scored under the same credit scoring model by the consumer reporting agency1 and using the same scale as that of the score that is provided to a creditor or consumers-- 7i7 in the form of a bar graph containing a minimum of #f bars that illustrates the percentage of consumers with credit scores or educational credit scores within the range of scores represented by each bar2 or 7ii7 by another clear and readily understandable graphical depiction1 statement1 or illustration comparing the consumer's credit score or educational credit score to the scores of other consumers1 as determined by the ,bureau2 7,f7 the date on which the credit score or educational credit score was created2 and 7,g7 the name of the person that developed the credit scoring model on which the credit score or educational credit score was based4 7#c7 ,applicability to certain uses ,this subsection shall not be construed so as to compel a consumer reporting agency to-- 7,a7 develop or disclose a credit score if the agency does not distribute credit scores used by a person who makes or arranges a loan or extends credit to predict the likelihood of certain credit behaviors2 or 7,b7 develop or disclose an educational credit score if the agency does not develop educational credit scores that assist in understanding the general credit behavior of a consumer and predicting the future credit behavior of the consumer4 7#d7 ,maintenance of credit scores 7,a7 ,in general ,all consumer reporting agencies shall maintain in the consumer's file credit scores relating to the consumer for a period of #b years from the date on which such information is generated4 7,b7 ,disclosure only to consumers ,a past credit score maintained in a consumer's file pursuant to subparagraph 7,a7 may only be provided to the consumer to which the credit score relates and may not be included in a consumer report or used as a factor in generating a credit score or educational credit score4 7,c7 ,removal of past credit scores ,a past credit score maintained in a consumer's file pursuant to subparagraph 7,a7 shall be removed from the consumer's file after the end of the #b-year period described under subparagraph 7,a74 4 #fjc4 ,requires consumer reporting agencies to disclose prominently the differences between and limitations of credit scores and educational credit scores required prior to a consumer obtaining such scores ,section #fji7;f7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;g7f771 as amended by section #fjb1 is further amended by adding at the end the following new paragraphs3 7#e7 ,website disclaimer ,a consumer reporting agency that generates or provides credit scores or educational credit scores shall clearly and conspicuously display on the home page of the agency's ,internet website1 and as part of any application1 solicitation1 or marketing material or media providing information related to a credit score or educational credit score1 the following notice1 in boldface type of #ah-point font or larger and in a text box with boldface outer borders3 ,credit score disclaimer ,there is no 8one0 credit score4 ,there are many scoring formulas derived from a wide variety of models available to a consumer and used by lenders and creditors4 ,different lenders and creditors use different scoring formulas to determine whether to extend credit or make a loan to you1 and the terms of the credit or loan4 ,an educational credit score is not a credit score that a person who makes a loan or extends credit to you is likely to use4 ,educational credit scores are merely intended to be used as an educational tool to help consumers understand how the information contained in a consumer report may affect the terms and conditions of a loan or extension of credit that may be available to a consumer4 ,lenders and creditors may also rely on information not contained in your consumer report and not reflected in the calculation of your credit score4 4 7#f7 ,additional requirements for educational credit scores 7,a7 ,disclaimer ,if an educational credit score is provided pursuant to paragraph 7#a71 a consumer reporting agency shall clearly and conspicuously include in a prominent location on the statement1 in boldface type of #ah-point font or larger1 and in a text box with boldface outer borders1 the following notice3 ,educational credit score disclaimer ,the educational credit score provided to you is not a credit score that a lender or creditor is likely to use to make a loan or extend credit to you4 ,there are many different credit scores derived from a wide variety of models used by lenders and creditors4 ,an educational credit score is merely an educational tool4 ,it is intended to provide consumers with a basic understanding of how the information contained in a consumer report may affect the terms and conditions of credit that are available4 ,the credit scores you receive directly from different lenders and creditors may not be the same as an educational credit score4 ,there are a number of reasons for this3 7#a7 ,each company may use a different formula for calculating credit scores and the differences in the formulas may lead to differences in your scores4 7#b7 ,companies may produce scores that give results on different scales4 7#c7 ,not all lenders or creditors report to every consumer reporting agency1 and therefore the information contained in your consumer report that the consumer reporting agencies use to calculate your educational credit score may differ among agencies4 4 7,b7 ,prohibition on misleading representations ,a consumer reporting agency may not refer to an educational credit score as a credit score in any application1 solicitation1 marketing1 or other informational materials or media4 7#g7 ,modification of disclaimers ,the ,bureau may modify the content1 format1 and manner of the disclaimers required under paragraphs 7#e7 and 7#f71 if warranted1 after conducting consumer testing or research4 4 #fjd4 ,provides consumers with free credit score disclosures with their free annual consumer reports upon request and creates instances when consumers automatically receive free consumer reports and credit scores 7a7 ,in general ,section #fab of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;j7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,a71 by inserting after section #fji the following3 7including the disclosure of a credit score or educational credit score under subsection 7f7 of such section72 and 7ii7 in subparagraph 7,c7-- 7,i7 by striking ,commission and inserting ,bureau2 7,,ii7 by inserting 1 credit scores1 and educational credit scores 7as applicable7 after consumer reports each place that term appears2 and 7,,iii7 in clause 7i71 by inserting and through the ,internet website established under section #faa7;g7 after such requests2 7,b7 in paragraph 7#b7-- 7i7 by striking #ae days and inserting #c business days2 and 7ii7 by inserting 1 credit score1 or educational credit score after consumer report2 7,c7 in paragraph 7#c71 by inserting 1 credit score1 or educational credit score after consumer report2 and 7,d7 in paragraph 7#d71 by inserting 1 credit scores1 or educational credit scores after consumer reports2 7#b7 in subsection 7b71 by inserting 7including the disclosure of a credit score or educational credit score1 as applicable1 under subsection 7f7 of such section7 after section #fji2 7#c7 in subsection 7c7-- 7,a7 by inserting 7including the disclosure of a credit score or educational credit score under subsection 7f7 of such section7 after pursuant to section #fji2 7,b7 in paragraph 7#b71 by striking 2 or and inserting a semicolon2 7,c7 in paragraph 7#c71 by striking the period at the end and inserting a semicolon2 and 7,d7 by adding at the end the following new paragraphs3 7#d7 has disputed information1 or submitted an appeal of an investigation or reinvestigation of such information1 under section #faa or #fbc1 regardless of whether the consumer has already received a credit report1 credit score1 or educational credit score under section #faa or #fbc2 or 7#e7 has had information that was previously deleted under section #faa7;a77#e7 reinserted into the consumer's file1 regardless of whether the consumer has already received a credit report1 credit score1 or educational credit score under such section4 2 7#d7 in subsection 7d71 by inserting 7including the disclosure of a credit score or educational credit score under subsection 7f7 of such section7 after section #fji2 7#e7 in subsection 7f77#a7-- 7,a7 by striking reasonable charge and all that follows through section #fji and inserting reasonable charge on a consumer for providing a consumer report to a consumer2 7,b7 by striking subparagraph 7,b72 7,c7 by redesignating clauses 7i7 and 7ii7 as subparagraphs 7,a7 and 7,b71 respectively 7and conforming the margins accordingly72 and 7,d7 in subparagraph 7,b7 7as so redesignated71 by striking disclosure2 and and inserting disclosure42 and 7#f7 by adding at the end the following new subsections3 7h7 ,centralized source for obtaining free copy of consumer report and scores 7#a7 ,nationwide consumer reporting agencies 7,a7 ,in general ,not later than #ahj days after the date of enactment of this subsection1 each consumer reporting agency described under subsection 7p7 of section #fjc shall prominently display on the home page of the agency's website-- 7i7 a hyperlink labeled ,get ,your ,free ,annual ,credit ,reports along with either your ,credit ,scores or ,educational ,credit ,scores provided for under ,federal ,law or substantially similar text1 as determined by the ,bureau2 and 7ii7 a disclosure titled ,consumer's ,right to ,free ,credit ,scores1 ,educational ,credit ,scores1 and ,reports under ,federal ,law or substantially similar text1 as determined by the ,bureau that includes the following statement3 ,all consumers are entitled to obtain a free copy of their consumer report and credit score or educational credit score annually from each of the nationwide consumer reporting agencies4 ,under ,federal law1 a consumer is entitled to obtain additional free copies of their consumer reports1 along with a copy of either the consumer's credit score or educational credit score 7under certain circumstances71 including3 7#a7 ,when a consumer is unemployed and intends to apply for employment within #fj days4 7#b7 ,when a consumer is a recipient of public welfare assistance4 7#c7 ,when a consumer has a reasonable belief that their report contains inaccuracies as a result of fraud4 7#d7 ,when a consumer asserts in good faith a suspicion that the consumer has been or is about to become a victim of identity theft1 fraud1 or a related crime1 or harmed by the unauthorized disclosure of the consumer's financial or personally identifiable information4 7#e7 ,when a consumer files a dispute or an appeal of the results of a dispute with a consumer reporting agency or a person who furnished information to the consumer reporting agency regarding the accuracy or completeness of the information contained on their report4 7#f7 ,after a furnisher of information discovers it has furnished inaccurate or incomplete information to a consumer reporting agency1 and the furnisher notifies the agency of the error4 7#g7 ,after an adverse action is taken against a consumer or a consumer receives a risk-based pricing notice4 7#h7 ,when a mortgage lender1 private educational lender1 indirect auto lender1 or motor vehicle lender obtains and uses a consumer's reports or scores for underwriting purposes4 4 7,b7 ,hyperlink requirements ,the hyperlink described in subparagraph 7,a77i7 shall be prominently located on the top of the home page and should link directly to the website of the centralized source established pursuant to section #baa7;d7 of the ,fair and ,accurate ,credit ,transactions ,act of #bjjc 7#ae ,u4,s4,c4 #afha;j7d774 7,c7 ,modifications ,the ,bureau may modify the disclosure described in subparagraph 7,a77ii7 as necessary to include other circumstances under which a consumer has the right to receive a free consumer report1 credit score1 or educational credit score4 7#b7 ,nationwide specialty consumer reporting agencies 7,a7 ,in general ,not later than #ahj days after the date of enactment of this subsection1 each nationwide specialty consumer reporting agency shall prominently display on the ,internet home webpage of the agency a disclosure titled ,consumer's ,right to ,free ,consumer ,reports and ,credit ,score or ,educational ,credit ,score 7as applicable7 under ,federal ,law4 ,such disclosure shall include the following statement3 ,upon request1 all consumers are entitled to obtain a free copy of their consumer report and credit score or educational credit score 7as applicable7 during any #ab-month period from each of the nationwide specialty consumer reporting agencies4 ,federal law also provides further circumstances under which a consumer is entitled to obtain additional free copies of their consumer report and credit score or educational credit score 7as applicable7 including3 7#a7 ,when a consumer is unemployed and intends to apply for employment within #fj days4 7#b7 ,when a consumer is a recipient of public welfare assistance4 7#c7 ,when a consumer has a reasonable belief that their report contains inaccuracies as a result of fraud4 7#d7 ,when a consumer files a dispute or an appeal of the results of a dispute with a consumer reporting agency or a person who furnished information to the consumer reporting agency regarding the accuracy or completeness of the information contained on their report4 7#e7 ,after a furnisher of information discovers it has furnished inaccurate or incomplete information to a consumer reporting agency1 and the furnisher notifies the agency of the error4 7#f7 ,after an adverse action is taken against a consumer or a consumer receives a risk-based pricing notice4 7#g7 ,when a mortgage lender1 private educational lender1 indirect auto lender1 or motor vehicle lender obtains and uses a consumer's reports or scores for underwriting purposes4 4 7,b7 ,modifications ,the ,bureau may modify the disclosure described in subparagraph 7,a7 as necessary to include other circumstances under which a consumer has the right to receive a free consumer report and credit score or educational credit score 7as applicable74 7,c7 ,toll-free telephone access ,the information described in this paragraph shall also be made available via a toll-free telephone number4 ,such number shall be prominently displayed on the home page of the website of each nationwide specialty consumer reporting agency4 ,each of the circumstances under which a consumer may obtain a free consumer report and credit score or educational credit score 7as applicable7 shall be presented in an easily understandable format and consumers shall be directed to an individual who is a customer service representative not later than #b minutes after the initial phone connection is made by the consumer4 ,information provided through such telephone number shall comply with the requirements of section #fcc4 7,d7 ,online consumer reports2 exemption ,upon receipt of a request by a consumer for a consumer report1 each nationwide specialty consumer reporting agency shall provide access to such report electronically on the ,internet website described in section #faa7;g74 7i7 ,automatic provision of free consumer reports and credit scores or educational credit scores ,a consumer reporting agency shall provide to a consumer a free copy of the file and credit score or educational credit score of the consumer who-- 7#a7 obtains a #a-year fraud alert1 #g-year fraud alert1 active duty alert1 or credit freeze as described in section #fje;,a2 or 7#b7 has disputed information1 or submitted an appeal of an investigation or reinvestigation of such information1 under section #faa or #fbc4 4 7b7 ,technical amendment ,section #fae7;h77#g7 of such ,act 7#ae ,u4,s4,c4 #afham7h77#g77 is amended by striking section and inserting subsection4 #fje4 ,requires private educational lenders to provide consumers with free copies of any consumer reports and credit scores that they used for underwriting before consumers sign loan agreements ,section #fji of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;g71 as amended by section #gjb1 is further amended by adding at the end the following new subsection3 7i7 ,disclosure of consumer reports and credit scores by private educational lenders 7#a7 ,in general ,if a private educational lender obtains a copy of any consumer reports or credit scores and uses such reports or scores in connection with an application of a consumer for a private education loan1 the private educational lender shall provide to the consumer1 not later than #c business days after obtaining such reports or scores and before the date on which the consumer enters into a loan agreement with the private educational lender1 a copy of any such reports or scores1 along with the statement described under subsection 7f77#b74 7#b7 ,costs ,none of the costs to the private educational lender associated with procuring consumer reports or credit scores under this subsection may be charged1 directly or indirectly1 to the consumer4 7#c7 ,rule of construction ,nothing in this subsection shall be construed to eliminate any requirement for creditors and lenders to provide credit score disclosures1 including the statement described under subsection 7f77#b71 to consumers as part of an adverse action or risk-based pricing notice4 4 #fjf4 ,requires motor vehicle lenders or indirect auto lenders to provide consumers with free copies of any consumer reports and credit scores that they used for underwriting before consumers sign lease or loan agreements ,section #fji of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;g71 as amended by section #fje1 is further amended by adding at the end the following new subsection3 7j7 ,disclosure of consumer reports and credit scores used by motor vehicle lenders or indirect auto lenders 7#a7 ,in general ,if a motor vehicle lender or indirect auto lender obtains a copy of any consumer reports or credit scores and uses such reports or scores in connection with an application of a consumer for a motor vehicle loan or lease1 the motor vehicle lender or indirect auto lender shall provide to the consumer a document1 separate from the consumer's lease or purchase agreement and before the consumer enters into a lease or purchase agreement1 disclosing any consumer reports and credit scores1 including the statement described in subsection 7f77#b71 used by the lender to determine whether to extend credit to the consumer4 7#b7 ,costs ,none of the costs to the motor vehicle lender or indirect auto lender associated with procuring consumer reports or credit scores under this subsection may be charged1 directly or indirectly1 to the consumer4 7#c7 ,rule of construction ,nothing in this subsection shall be construed to eliminate any requirement for creditors and lenders to provide credit score disclosures1 including the statement described under subsection 7f77#b71 to consumers as part of an adverse action or risk-based pricing notice4 7#d7 ,definitions 7,a7 ,indirect auto lender ,the term indirect auto lender has the meaning given the term by the ,bureau1 and shall include a person extending a loan made with respect to a car1 boat1 motorcycle1 recreational vehicle1 or other similar vehicle used primarily for personal or household purposes4 7,b7 ,motor vehicle lender ,the term motor vehicle lender has the meaning given the term by the ,board of ,governors of the ,federal ,reserve ,system1 and shall include a person extending a loan made with respect to a car1 boat1 motorcycle1 recreational vehicle1 or other similar vehicle used primarily for personal or household purposes4 4 #fjg4 ,requires residential mortgage lenders to provide consumers with free copies of any consumer reports and credit scores that they used for underwriting before consumers sign loan agreements ,section #fji7;g7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;g7g77 is amended-- 7#a7 by redesignating paragraph 7#b7 as paragraph 7#e72 7#b7 in paragraph 7#a7-- 7,a7 by striking a consumer credit score and inserting any consumer reports or credit scores2 7,b7 by striking 1 as defined in subsection 7f712 7,c7 by striking the following to the consumer as soon as reasonably practicable3 and inserting 1 not later than #c business days after using such reports or scores1 a document disclosing any consumer reports and credit scores used by the lender to determine whether to extend credit to the consumer along with the statement described in subsection 7f77#b742 7,d7 by striking subparagraphs 7,a71 7,b71 7,c71 7,e71 and 7,f72 7,e7 by redesignating subparagraph 7,d7 as paragraph 7#c72 and 7,f7 by redesignating subparagraph 7,g7 as paragraph 7#d72 7#c7 by inserting after paragraph 7#a7 the following new paragraph3 7#b7 ,rule of construction ,nothing in this subsection shall be construed to eliminate any requirement for lenders to provide credit score disclosures1 including the statement described under subsection 7f77#b71 to consumers as part of an adverse action or risk-based pricing notice4 2 7#d7 in paragraph 7#c7 7as so redesignated71 in the quoted material-- 7,a7 by inserting 1 free of charge1 after disclose to you2 and 7,b7 by striking affecting your credit scores and inserting affecting your credit score or scores2 7#e7 in paragraph 7#e7 7as so redesignated7 by inserting or scores after credit score each place such term appears2 and 7#f7 by adding at the end the following new paragraphs3 7#f7 ,actions not required ,this subsection shall not require any person to disclose any credit score or related information obtained by the person after a loan has closed4 7#g7 ,no procurement costs ,none of the costs to the creditor or lender associated with procuring any consumer reports or scores under this subsection may be charged1 directly or indirectly1 to the consumer4 4 ,,vii ,banning misleading and unfair consumer reporting practices #gja4 ,prohibits automatic renewals for consumer reporting and credit scoring products and services offered under promotional terms ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq471 as amended by section #eja1 is further amended-- 7#a7 by adding at the end the following new section3 #fcb4 ,promotional periods 7a7 ,termination notice ,with respect to any product or service related to a consumer report or a credit score that is provided to a consumer under promotional terms1 the seller or provider of such product or service shall provide clear and conspicuous notice to the consumer within a reasonable period of time before the promotional period ends4 7b7 ,opt-,in ,with respect to any such product or service1 the seller or provider may not continue to sell or provide such product or service to the consumer after the end of the promotional period unless the consumer specifically agrees at the end of the promotional period to continue receiving the product or service4 2 and 7#b7 in the table of contents for such ,act1 by inserting after the item relating to section #fca 7as added by section #eja7 the following new item3 #fcb4 ,promotional periods4 4 #gjb4 ,bans misleading and deceptive marketing related to the provision of consumer reporting and credit scoring products and services ,section #fji of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;g7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#a7-- 7i7 by striking request1 except and all that follows through consumer to whom and inserting request1 unless the consumer to whom2 7ii7 by striking disclosure2 and and inserting disclosure42 and 7iii7 by striking subparagraph 7,b72 and 7,b7 in paragraph 7#f71 by inserting or educational credit score 7if applicable7 under subsection 7f7 or section #fab before the period at the end2 and 7#b7 by adding at the end the following new subsection3 7h7 ,disclosures on products and services ,the ,bureau1 in consultation with the ,federal ,trade ,commission1 shall issue regulations within #ah months of the date of the enactment of this subsection requiring each consumer reporting agency and reseller to clearly and conspicuously disclose all material terms and conditions1 including any fee and pricing information associated with any products or services offered1 advertised1 marketed1 or sold to consumers by the agency or reseller4 ,such disclosures shall be made in all forms of communication to consumers and displayed prominently on the agency or reseller's website and all other locations where products or services are offered1 advertised1 marketed1 or sold to consumers4 4 #gjc4 ,ends excessive direct-to-consumer sales by giving the ,bureau authority to set fair and reasonable fees on consumer reporting and credit scoring products and services sold by consumer reporting agencies to consumers ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq471 as amended by section #gjf1 is further amended-- 7#a7 by adding at the end the following new section3 #fce4 ,fair and reasonable fees for products and services ,the ,bureau may1 with respect to any product or service offered by a consumer reporting agency to a consumer1 set a fair and reasonable maximum fee that may be charged for such product or service1 except where such maximum fee is otherwise provided under this title4 2 and 7#b7 in the table of contents for such ,act1 as amended by section #gjf1 by adding at the end the following new item3 #fce4 ,fair and reasonable fees for products and services4 4 #gjd4 ,promotes access to consumer reporting and credit scoring disclosures for consumers with limited ,english proficiency and visual and hearing impairments to enhance their ability to exercise their rights ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq471 as amended by section #gja1 is further amended-- 7#a7 by adding at the end the following new section3 #fcc4 ,fair access to information for nonnative ,english speakers and the visually and hearing impaired 7a7 ,in general ,not later than #ahj days after the date of the enactment of this section1 the ,bureau shall issue a rule to require consumer reporting agencies and persons who furnish information to consumer reporting agencies under this title1 to the maximum extent reasonably practicable-- 7#a7 to provide any information1 disclosures1 or other communication with consumers-- 7,a7 in each of the #aj most commonly spoken languages1 other than ,english1 in the ,united ,states1 as determined by the ,bureau of the ,census on an ongoing basis2 and 7,b7 in formats accessible to individuals with hearing or vision impairments2 and 7#b7 to ensure that-- 7,a7 customer service representatives1 including employees assigned to handle disputes or appeals under sections #faa and #fbc1 who are available to assist consumers are highly familiar with the requirements of this title2 7,b7 such representatives are available during regular business hours and outside of regular business hours1 including evenings and weekends2 and 7,c7 at least one among such representatives is fluent in each of the #aj most commonly spoken languages1 other than ,english1 in the ,united ,states1 as determined by the ,bureau of the ,census on an ongoing basis4 7b7 ,bureau consultation ,the ,bureau shall consult with advocates for civil rights1 consumer groups1 community groups1 and organizations that serve traditionally underserved communities and populations in issuing the rule described in subsection 7a74 2 and 7#b7 in the table of contents for such ,act1 by inserting after the item relating to section #fcb 7as added by section #gja7 the following new item3 #fcc4 ,fair access to information for nonnative ,english speakers and the visually and hearing impaired4 4 #gje4 ,establishes consumers' right to shop for the best deal on certain large dollar loans without harming their credit standing ,section #fje of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c7 is amended by adding at the end the following new subsection3 7h7 ,encouraging consumers ,to comparison shop for loans by treating grouped enquiries of the same type within a reasonable period as a single enquiry 7#a7 ,in general ,with respect to multiple enquiries of the same type made to a consumer reporting agency for a consumer report or credit score with respect to a consumer1 any credit scoring model shall treat such enquiries as a single enquiry if the enquiries are made within a #abj-;day period4 7#b7 ,definition of enquiries of the same type ,with respect to multiple enquiries made to a consumer reporting agency for a consumer report or credit score with respect to a consumer1 such enquiries are of the same type if the consumer reporting agency has reason to believe that the enquiries are all made for the purpose of determining the consumer's creditworthiness for an extension of credit described in one of the following3 7,a7 ,a covered residential mortgage loan 7as described in section #fje;,c74 7,b7 ,a motor vehicle loan or lease 7as described in section #fji7;j774 7,c7 ,a private education loan4 7,d7 ,any other consumer financial product or service1 as determined by the ,bureau4 4 #gjf4 ,ends confusion about whether entities are engaged in consumer reporting practices by creating a nationwide consumer reporting agencies registry ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq471 as amended by section #gjd1 is further amended-- 7#a7 by adding at the end the following new section3 #fcd4 ,nationwide consumer reporting agencies registry 7a7 ,in general ,not later than #a year after the date of enactment of this section1 the ,bureau shall establish and maintain a publicly accessible registry of consumer reporting agencies described in subsection 7p7 or 7x7 of section #fjc 7and any other agencies the ,bureau determines provide similar services to such consumer reporting agencies7 that includes current contact information of each such agency1 including the ,internet website address of the ,internet website described under section #faa7;g71 and information on how consumers can obtain their consumer report1 credit scores1 or educational credit scores 7as applicable7 by toll-free telephone1 postal mail1 or electronic means4 7b7 ,registry requirements ,the registry described in subsection 7a7 shall-- 7#a7 identify the largest agencies and the markets and demographics covered by such agencies2 and 7#b7 disclose1 with respect to each agency1 whether the agency is subject to the supervisory authority of the ,bureau under this title4 7c7 ,information updates ,each agency described under subsection 7a7 shall submit to the ,bureau contact information for the registry1 including any updates to such information4 ,the ,bureau shall-- 7#a7 independently verify information submitted by each agency2 and 7#b7 update the registry not less frequently than annually4 2 and 7#b7 in the table of contents for such ,act1 by inserting after the item relating to section #fcc 7as added by section #gjd7 the following new item3 #fcd4 ,nationwide consumer reporting agencies registry4 4 ,,viii ,expanding access to tools to protect vulnerable consumers from identity theft1 fraud1 or a related crime1 and protect victims from further harm #hja4 ,identity theft report definition ,paragraph 7#d7 of section #fjc7q7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a7q77#d77 is amended to read as follows3 7#d7 ,identity theft report ,the term identity theft report has the meaning given that term by rule of the ,bureau1 and means1 at a minimum1 a report-- 7,a7 that is a standardized affidavit that alleges that a consumer has been a victim of identity theft1 fraud1 or a related crime1 or has been harmed by the unauthorized disclosure of the consumer's financial or personally identifiable information1 that was developed and made available by the ,bureau2 or 7,b7 7i7 that alleges an identity theft1 fraud1 or a related crime1 or alleges harm from the unauthorized disclosure of the consumer's financial or personally identifiable information2 7ii7 that is a copy of an official1 valid report filed by a consumer with an appropriate ,federal1 ,state1 or local law enforcement agency1 including the ,united ,states ,postal ,inspection ,service1 or such other government agency deemed appropriate by the ,bureau2 and 7iii7 the filing of which subjects the person filing the report to criminal penalties relating to the filing of false information if1 in fact1 the information in the report is false4 4 #hjb4 ,credit freeze definition ,section #fjc7q7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a7q77#d77 is amended by adding at the end the following new paragraph3 7#f7 ,credit freeze ,the term credit freeze means a restriction placed at the request of a consumer or a personal representative of the consumer1 on the consumer report of the consumer1 that prohibits a consumer reporting agency described in section #fjc7p7 from releasing the consumer report for a purpose relating to the extension of credit without the express authorization of the consumer4 ,a credit freeze shall not apply to the use of a consumer report by any of the following3 7,a7 ,a person1 or the person's subsidiary1 affiliate1 agent1 subcontractor1 or assignee with whom the consumer has1 or prior to assignment had1 an authorized account1 contract1 or debtor-creditor relationship for the purposes of reviewing the active account or collecting the financial obligation owed on the account1 contract1 or debt4 7,b7 ,a person1 or the person's subsidiary1 affiliate1 agent1 subcontractor1 or assignee1 to whom access has been granted pursuant to a request by the consumer described under section #fje;,a7i77#a77;,b71 for purposes of facilitating the extension of credit or other permissible use4 7,c7 ,any person acting pursuant to a court order1 warrant1 or subpoena4 7,d7 ,a ,federal1 ,state1 or local government1 or an agent or assignee thereof4 7,e7 ,any person for the sole purpose of providing a credit monitoring or identity theft protection service to which the consumer has subscribed4 7,f7 ,any person for the purpose of providing a consumer with a copy of the consumer report1 credit score1 or educational credit score of the consumer upon the consumer's request4 7,g7 ,any person or entity for insurance purposes1 including use in setting or adjusting a rate1 adjusting a claim1 or underwriting4 7,h7 ,any person acting pursuant to an authorization from a consumer to use their consumer report for employment purposes4 4 #hjc4 ,credit freezes for minors and other vulnerable consumers 7a7 ,in general ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq471 as amended by section #djf1 is further amended by inserting after section #fje;,f the following new section3 #fje;,g4 ,additional protections for files and credit records of vulnerable consumers 7a7 ,in general ,a consumer reporting agency described in section #fjc7p7 shall1 upon request by a covered representative of a covered consumer-- 7#a7 create a credit record for a verified covered consumer and place or remove a covered consumer credit freeze on such credit record2 or 7#b7 place or remove a covered consumer credit freeze on a file of a covered consumer that is maintained by such consumer reporting agency4 7b7 ,requirements ,the ,bureau1 by rule1 shall establish procedures for a consumer reporting agency described in section #fjc7p7 to-- 7#a7 verify the authority and the identity of the requestor by determining if the requestor has submitted sufficient proof of authority and sufficient proof of identification to meet the requirements of a covered representative2 and 7#b7 notify the requestor when the consumer reporting agency has fulfilled the request4 7c7 ,removing covered consumer credit freezes from files and deleting credit records 7#a7 ,in general ,a consumer reporting agency described in section #fjc7p7 shall permanently remove a covered consumer credit freeze from a file or delete a credit record upon request by-- 7,a7 a covered representative2 7,b7 a minor child who shows sufficient proof of emancipation and sufficient proof of identification2 7,c7 a covered consumer for whom a conservatorship or guardianship has been terminated2 or 7,d7 a consumer who was a minor child on the date the covered consumer credit freeze was placed1 if such consumer makes the request on or after the date of the ,state-determined age of consent for the minor child4 7#b7 ,alert statement ,an alert statement shall be included in a file of a minor child for which a covered consumer credit freeze has been removed pursuant to paragraph 7#a7 if the minor child was a victim of fraud or identity theft before the date of the ,state-determined age of consent of the minor child as follows3 7,a7 ,for a file for which a covered consumer credit freeze has been removed upon request by a covered representative1 for the period beginning on the date of the removal of the covered consumer credit freeze from the file and ending on the date that is #a year after the date of the ,state-determined age of consent for the minor child4 7,b7 ,for a file for which a covered consumer credit freeze was removed on the date of the ,state-determined age of consent for the minor child1 for a period of #a year after such date4 7#c7 ,duty of reseller ,with respect to information concerning a minor child whose file contains an alert statement1 a reseller shall include such alert statement when furnishing such information4 7d7 ,timing ,with respect to a covered consumer credit freeze1 a consumer reporting agency described in section #fjc7p7 shall-- 7#a7 place or remove such covered consumer credit freeze within #cj days after receipt of a request to place or remove such covered consumer credit freeze2 and 7#b7 notify the consumer to whom the covered consumer credit freeze relates not later than #aj days after such covered consumer credit freeze has been placed or removed of such placement or removal4 7e7 ,fees 7#a7 ,in general ,except as provided in paragraph 7#b71 a consumer reporting agency described in section #fjc7p7 may only charge a fee1 not to exceed #c 7as adjusted by the ,bureau on ,january #ast of each year to reflect proportional changes in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics of the ,department of ,labor1 with fractional changes rounded to the nearest #ej cents71 to create a credit record1 place or remove a covered consumer credit freeze on a credit record or credit file1 or place or remove an alert statement4 7#b7 ,fees prohibited ,a consumer reporting agency described in section #fjc7p7 may not charge a fee as described in paragraph 7#a7 to a consumer who has been placed in a foster care setting4 7f7 ,exceptions ,no provision of this section shall be construed to require a consumer reporting agency described in section #fjc7p7 to prevent valid access to a credit record or file-- 7#a7 by a ,federal1 ,state1 or local law enforcement agency2 7#b7 to a person who provides a covered consumer or a covered representative with a copy of the file of the covered consumer at the request of the covered consumer or the covered representative2 7#c7 by any child support agency acting pursuant to ,federal1 ,state1 or local law2 7#d7 by any ,federal1 ,state1 or local health care department or its agents or assignees acting to investigate ,medicare fraud2 or 7#e7 by any ,federal1 ,state1 or local department of revenue or taxes1 or its agents or assignees1 acting to investigate or collect delinquent taxes or delinquent court orders1 or to fulfill other statutory requirements4 7g7 ,definitions ,in this section the following definitions shall apply3 7#a7 ,alert statement ,the term alert statement means a statement that-- 7,a7 notifies all permissible users of a consumer report relating to a covered consumer that the consumer may be a victim of fraud1 including identity theft2 and 7,b7 is presented in a manner that facilitates a clear and conspicuous view of the information described in subparagraph 7,a7 by any person requesting such consumer report4 7#b7 ,covered consumer ,the term covered consumer means-- 7,a7 a minor child2 7,b7 an incapacitated consumer for whom a guardian or conservator has been appointed2 7,c7 a consumer under the jurisdiction of a county welfare department or county probation department who has been placed in a foster care setting2 or 7,d7 any other person or class of persons1 as determined by the ,bureau4 7#c7 ,covered consumer credit freeze ,the term covered consumer credit freeze means a credit freeze placed or removed on a credit record or file pursuant to this section4 7#d7 ,covered representative ,the term covered representative-- 7,a7 means a person who provides to a consumer reporting agency sufficient proof of authority and sufficient proof of identification2 7,b7 means1 with respect to a covered consumer who has been placed in a foster care setting1 a county welfare department or its agent or designee1 or a county probation department or its agent or designee2 7,c7 with respect to a covered consumer who has been placed in a foster care setting1 does not mean a foster parent2 and 7,d7 means any other person or class of persons1 as determined by the ,bureau4 7#e7 ,credit record ,the term credit record means a compilation of information that-- 7,a7 identifies a covered consumer2 7,b7 was created by a consumer reporting agency solely for the purpose of complying with this section2 and 7,c7 is not otherwise authorized to be created or used to consider the covered consumer's creditworthiness1 credit standing1 credit capacity1 character1 general reputation1 personal characteristics1 or mode of living4 7#f7 ,minor child ,the term minor child means a consumer who has not yet attained the legal age of consent1 as established by the ,state or jurisdiction of residence of the person4 7#g7 ,sufficient proof of authority ,the term sufficient proof of authority means documentation that shows that a covered representative has authority to act on behalf of a covered consumer in a financial matter4 ,such documentation may include-- 7,a7 a court order or relevant document issued by a court2 7,b7 a legally sufficient and valid power of attorney or a durable power of attorney2 7,c7 a written1 notarized statement signed by a covered representative that expressly describes the authority of the covered representative to act on behalf of a covered consumer in financial matters1 including as a temporary conservator or temporary guardian2 7,d7 a written communication from a county welfare department or its agent or designee1 or a county probation department or its agent or designee1 certifying that the covered consumer is in a foster care setting under its jurisdiction2 or 7,e7 any other documentation1 as determined by the ,bureau4 7#h7 ,sufficient proof of identification ,the term sufficient proof of identification means information or documentation that identifies a covered consumer or a covered representative4 ,such information or documentation may include-- 7,a7 a ,social ,security number or a copy of a ,social ,security card2 7,b7 an official or certified copy of a birth certificate2 7,c7 a copy of a driver's license or similar document issued for the purpose of identification by a ,state2 7,d7 a copy of a bill for telephone1 sewer1 septic tank1 water1 electric1 oil1 or natural gas services that lists the name and home address of the covered consumer or covered representative2 7,e7 a written communication from a county welfare department or its agent or designee1 or a county probation department or its agent or designee1 certifying that the covered consumer is in a foster care setting under its jurisdiction2 or 7,f7 any other information or documentation1 as determined by the ,bureau4 4 7b7 ,table of contents amendment ,the table of contents of the ,fair ,credit ,reporting ,act is amended by inserting after the item relating to section #fje;,f 7as added by section #djf7 the following new item3 #fje;,g4 ,additional protections for files and credit records of vulnerable consumers4 4 7c7 ,amendment to definition of file ,section #fjc7;g7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a7g77 is amended by inserting 1 except that such term excludes a credit record created pursuant to section #fje;,g after stored4 #hjd4 ,enhances fraud alert protections ,section #fje;,a of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c-#a7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in the subsection heading1 by striking ,one-,call and inserting ,one-,year2 7,b7 in paragraph 7#a7-- 7i7 in the paragraph heading1 by striking ,initial alerts and inserting ,in general2 7ii7 by inserting or harmed by the unauthorized disclosure of the consumer's financial or personally identifiable information1 after identity theft12 7iii7 in subparagraph 7,a7-- 7,i7 by striking #ij days and inserting #a year2 and 7,,ii7 by striking and at the end2 7iv7 in subparagraph 7,b7-- 7,i7 by inserting #a-year before fraud alert2 and 7,,ii7 by striking the period at the end and inserting 2 and2 and 7v7 by adding at the end the following new subparagraph3 7,c7 upon the expiration of the #a-year period described in subparagraph 7,a7 or a subsequent #a-year period1 and in response to a direct request by the consumer or such representative1 continue the fraud alert for a period of #a additional year if the information asserted in this paragraph remains applicable4 2 and 7,c7 in paragraph 7#b7-- 7i7 in the paragraph heading1 by inserting and credit or educational credit scores after reports2 7ii7 by inserting #a-year before fraud alert2 7iii7 in subparagraph 7,a71 by inserting and credit score or educational credit score after file2 and 7iv7 in subparagraph 7,b71 by striking any request described in subparagraph 7,a7 and inserting the consumer reporting agency includes the #a-year fraud alert in the file of a consumer2 7#b7 in subsection 7b7-- 7,a7 in the subsection heading1 by striking ,extended and inserting ,seven-,year2 7,b7 in paragraph 7#a7-- 7i7 in subparagraph 7,b7-- 7,i7 by striking #e-year period beginning on the date of such request and inserting such #g-year period2 and 7,,ii7 by striking and at the end2 7ii7 in subparagraph 7,c7-- 7,i7 by striking extended and inserting #g-year2 and 7,,ii7 by striking the period at the end and inserting 2 and2 and 7iii7 by adding at the end the following new subparagraph3 7,d7 upon the expiration of such #g-year period or a subsequent #g-year period1 and in response to a direct request by the consumer or such representative1 continue the fraud alert for a period of #g additional years if the consumer or such representative submits an updated identity theft report4 2 and 7,c7 in paragraph 7#b7-- 7i7 in the paragraph heading1 by inserting and credit or educational credit scores after reports2 and 7ii7 by amending subparagraph 7,a7 to read as follows3 7,a7 disclose to the consumer that the consumer may request a free copy of the file and credit score or educational credit score of the consumer pursuant to section #fab7;d7 during each #ab-month period beginning on the date on which the #g-year fraud alert was included in the file and ending on the date of the last day that the #g-year fraud alert applies to the consumer's file2 and 2 7#c7 in subsection 7c7-- 7,a7 in paragraph 7#a71 by inserting or educational credit score after credit score2 7,b7 by redesignating paragraphs 7#a71 7#b71 and 7#c71 as subparagraphs 7,a71 7,b71 and 7,c71 respectively 7and conforming the margins accordingly72 7,c7 by striking ,upon the direct request and inserting 7#a7 ,in general ,upon the direct request 2 and 7,d7 by adding at the end the following new paragraph3 7#b7 ,access to free reports and credit or educational credit scores ,if a consumer reporting agency includes an active duty alert in the file of an active duty military consumer1 the consumer reporting agency shall-- 7,a7 disclose to the active duty military consumer that the active duty military consumer may request a free copy of the file and credit score or educational credit score of the active duty military consumer pursuant to section #fab7;d71 during each #ab-month period beginning on the date that the activity duty military alert is requested and ending on the date of the last day the active duty alert applies to the file of the active duty military consumer2 and 7,b7 provide to the active duty military consumer all disclosures required to be made under section #fji1 without charge to the consumer1 not later than #c business days after any request described in subparagraph 7,a74 2 7#d7 by amending subsection 7d7 to read as follows3 7d7 ,procedures ,each consumer reporting agency described in section #fjc7p7 shall establish and make available to the public on the agency's ,internet website policies and procedures to comply with this section1 including policies and procedures-- 7#a7 that inform consumers of the availability of #a-year fraud alerts1 #g-year fraud alerts1 active duty alerts1 and credit freezes 7as applicable72 7#b7 that allow consumers to request #a-year fraud alerts1 #g-year fraud alerts1 and active duty alerts 7as applicable7 and to place1 temporarily lift1 or fully remove a credit freeze in a simple and easy manner2 and 7#c7 for asserting in good faith a suspicion that the consumer has been or is about to become a victim of identity theft1 fraud1 or a related crime1 or harmed by the unauthorized disclosure of the consumer's financial or personally identifiable information1 for a consumer seeking a #a-year fraud alert or credit freeze4 2 7#e7 in subsection 7e71 by inserting #a-year or #g-year before fraud alert2 7#f7 in subsection 7f71 by striking or active duty alert and inserting active duty alert1 or credit freeze 7as applicable72 7#g7 in subsection 7g7-- 7,a7 by inserting or has been harmed by the unauthorized disclosure of the consumer's financial or personally identifiable information1 or to inform such agency of the consumer's participation in credit restoration or rehabilitation under section #fje;,c1 #fje;,d1 or #fje;,e1 after identity theft12 and 7,b7 by inserting or credit freezes after request alerts2 and 7#h7 in subsection 7h7-- 7,a7 in paragraph 7#a7-- 7i7 in the paragraph heading1 by striking initial and inserting #a-year2 and 7ii7 by striking initial and inserting #a-year each place such term appears2 and 7,b7 in paragraph 7#b7-- 7i7 in the paragraph heading1 by striking extended and inserting #g-year2 and 7ii7 by striking extended and inserting #g-year each place such term appears4 #hje4 ,enhances access to credit freezes1 limits the cost of such freezes1 and provides access to free credit freezes for vulnerable consumers ,section #fje;,a of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c-#a7 is amended by adding at the end the following3 7i7 ,credit freezes 7#a7 ,in general ,upon the direct request of a consumer1 or individual acting on behalf of or as a personal representative of a consumer1 a consumer reporting agency described in section #fjc7p7 that maintains a file on the consumer and has received appropriate proof of the identity of the requester 7as described in section #ajbb4abc of title #ab1 ,code of ,federal ,regulations7 shall-- 7,a7 place a credit freeze on the file of the consumer not later than #a business day after receiving such request sent by postal mail1 toll-free telephone1 or secure electronic means as established by the agency and-- 7i7 not later than #e business days after placing the credit freeze1 provide the consumer with written confirmation of the credit freeze and a unique personal identification number or password 7other than the consumer's social security number7 for use to authorize the release of the consumer's report for a specific period of time2 and 7ii7 disclose all relevant information to the consumer relating to the procedures for temporarily lifting and fully removing a credit freeze1 including a statement about the maximum amount of time given to an agency to conduct such actions2 7,b7 for a consumer who provides a correct personal identification number or password1 temporarily lift an existing credit freeze from the consumer's file for a period of time specified by the consumer for a specific user or category of users1 as determined by the consumer-- 7i7 not later than #a business day after receiving the request by postal mail2 or 7ii7 not later than #ae minutes after receiving the request by toll-free telephone number or secure electronic means established by the agency1 if such request is received during regular business hours1 except if the consumer reporting agency's ability to temporarily lift the credit freeze is prevented by-- 7,i7 an act of ,god1 including earthquakes1 hurricanes1 storms1 or similar natural disaster or phenomenon1 or fire2 7,,ii7 unauthorized or illegal acts by a third party including terrorism1 sabotage1 riot1 vandalism1 labor strikes or disputes disrupting operations1 or a similar occurrence2 7,,iii7 an operational interruption1 including electrical failure1 unanticipated delay in equipment or replacement part delivery1 computer hardware or software failures inhibiting response time1 or a similar disruption2 7,,iv7 governmental action1 including emergency orders or regulations1 judicial or law enforcement action1 or a similar directive2 7,v7 regularly scheduled maintenance or updates to the consumer reporting agency's systems occurring outside of normal business hours2 or 7,,vi7 commercially reasonable maintenance of1 or repair to1 the consumer reporting agency's systems that is unexpected or unscheduled2 or 7,c7 for a consumer who provides a correct personal identification number or password1 fully remove an existing credit freeze from the file of the consumer not later than #a business day after receiving such request by postal mail1 toll-free telephone1 or secure electronic means established by the agency4 7#b7 ,fees 7,a7 ,classes of consumers ,the ,bureau may establish classes of consumers eligible to place1 temporarily lift1 or fully remove a credit freeze free of charge4 7,b7 ,no fee ,a consumer reporting agency described in section #fjc7p7 may not charge a consumer a fee to place1 temporarily lift1 or fully remove a credit freeze if the consumer or a representative of the consumer-- 7i7 asserts in good faith a suspicion that the consumer has been or is about to become a victim of identity theft1 fraud1 or a related crime1 or harmed by the unauthorized disclosure of the consumer's financial or personally identifiable information2 7ii7 is an active duty military consumer2 7iii7 is #fe years of age or older2 or 7iv7 is a member of a class established by the ,bureau under subparagraph 7,a74 7,c7 ,limitation on fees ,for consumers not described in subparagraph 7,b71 a consumer reporting agency may charge not more than #c 7as adjusted by the ,bureau on ,january #ast of each year1 based proportionally on changes in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics of the ,department of ,labor1 with fractional changes rounded to the nearest #ej cents7 for each request by a consumer or a representative of the consumer to place1 temporarily lift1 or fully remove a credit freeze4 7#c7 ,access to free reports and credit or educational credit scores ,if a consumer reporting agency includes a credit freeze in the file of a consumer described in paragraph 7#b77;,a71 the consumer reporting agency shall-- 7,a7 disclose to the consumer that the consumer may request a free copy of the file and credit score or educational credit score of the consumer pursuant to section #fab7;d7 on an annual basis beginning on the date the freeze is placed and ending on the date that is #ab months after the freeze is fully removed2 and 7,b7 provide to the consumer all disclosures required to be made under section #fji1 without charge to the consumer1 not later than #c business days after any request described in paragraph 7#a7 is made4 7#d7 ,other requirements ,during the period beginning on the date a consumer or a representative of the consumer requests to place a credit freeze and ending the date on which the consumer or representative requests to fully remove a credit freeze1 a consumer reporting agency shall 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 consumer1 unless the consumer or such representative requests that such exclusion be rescinded before end of such period4 7#e7 ,notice to consumers regarding changes to certain personally identifiable information ,a consumer reporting agency may not change the name1 date of birth1 social security number1 or address of a consumer in the file of the consumer during the period that a credit freeze is in place unless the consumer reporting agency sends a written confirmation of the change to the consumer within #cj days of the change being posted to the consumer's file4 ,written confirmation shall not be required for technical modifications of a consumer's personally identifiable information including name and street abbreviations1 complete spellings1 or transposition of numbers or letters4 ,in the case of an address change of the consumer1 any written confirmation shall be sent to the new address and former address of the consumer4 7#f7 ,nonapplicability to certain public record information ,a credit freeze placed on the file of a consumer shall not prohibit a consumer reporting agency from disclosing public record information lawfully obtained by1 or for1 the consumer reporting agency from an open public record4 7#g7 ,relation to ,state law ,this subsection does not annul1 alter1 or affect in any manner the meaning1 scope or applicability of the laws of any ,state relating to credit freezes or other similar actions1 except to the extent those laws are inconsistent with any provision of this title1 and then only to the extent of the inconsistency4 ,for purposes of this subsection1 a term or provision of a ,state law is not inconsistent with the provisions of this subsection if the term or provision affords greater protection and benefit to the consumer than the protection and benefit provided under this subsection as determined by the ,bureau1 on its own motion or upon the petition of any interested party4 4 #hjf4 ,requires disclosure of consumer rights related to credit freezes 7a7 ,summary of rights related to credit freezes ,section #fji7;c77#a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;g7c77#a771 as amended by section #aje7;d77#a77;,c77iv71 is further amended by adding at the end the following new subparagraph3 7,e7 ,summary of rights related to credit freezes ,the ,bureau shall publish1 and consumer reporting agencies described under section #fjc7p7 shall distribute to consumers1 the following notice3 ,credit freezes ,consumers have the right to obtain a credit freeze under ,federal law from any of the nationwide consumer reporting agencies4 ,you have a right to place a credit freeze on your consumer report1 which will prohibit a consumer reporting agency from releasing information in your consumer report without your express authorization4 ,a credit freeze may be requested in writing by mail1 by toll-free telephone1 or by electronic means as provided by a consumer reporting agency4 ,a credit freeze is designed to prevent credit1 loans1 and services from being approved in your name without your consent4 ,if you are actively seeking a new credit1 loan1 utility1 telephone1 or insurance account1 you should understand that the procedures involved in lifting a credit freeze may slow your applications for such accounts and you should plan ahead and lift a freeze in advance of actually applying for any of these type of accounts4 ,when you place a credit freeze on your consumer report1 you will be provided a personal identification number or password to use if you choose to fully remove the freeze on your consumer report or temporarily authorize the release of your consumer report for a period of time after the freeze is in place to a specific party or parties4 ,to provide that authorization you must contact each consumer reporting agency individually and provide your personal identification number or password1 proper identification to verify your identity1 and the period of time for which you would like the report to be available4 ,a consumer reporting agency must authorize the release of your consumer report no later than #ae minutes after receiving the above information if the request is by toll-free telephone1 or secure electronic means1 and no later than one business day when a written request is submitted by mail4 ,a credit freeze does not apply to a person or entity1 or its affiliates or collection agencies acting on behalf of the person or entity1 with which you have an existing account1 that requests information in your consumer report for the purposes of reviewing or collecting the account4 ,reviewing the account includes activities related to account maintenance4 ,unless you suspect you have been or are about to become a victim of identity theft1 fraud1 a related crime1 or harmed by the unauthorized disclosure of your financial or personally identifiable information1 are an active duty military servicemember1 are #fe years of age or older1 or as otherwise identified as an eligible consumer by the ,bureau of ,consumer ,financial ,protection1 a consumer reporting agency has the right to charge you a fee of no more than #c dollars each time you place1 temporarily lift1 or fully remove a credit freeze4 ,however1 if you reside in a ,state that provides greater protections with respect to the circumstances1 method1 or frequency for obtaining a credit freeze than is available under the ,federal law1 those ,state protections and benefits will apply to you4 4 4 7b7 ,clarification of information ,to be included with agency disclosures ,section #fji7;c77#b7 of such ,act 7#ae ,u4,s4,c4 #afha;g7c77#b77 is amended-- 7#a7 in subparagraph 7,b7-- 7,a7 by striking consumer reporting agency described in section #fjc7p7 and inserting consumer reporting agency described in subsection 7p7 or 7x7 of section #fjc2 7,b7 by striking the agency and inserting such an agency2 and 7,c7 by inserting and an ,internet website address after hours2 and 7#b7 in subparagraph 7,e71 by striking outdated under section #fje or and inserting outdated1 required to be removed1 or4 #hjg4 ,provides access to fraud records for victims ,section #fji7;e7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;g7e77 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 by striking resulting from identity theft2 7,b7 by striking claim of identity theft and inserting claim of fraudulent activity2 and 7,c7 by striking any transaction alleged to be a result of identity theft and inserting any fraudulent transaction2 7#b7 in paragraph 7#b77;,b7-- 7,a7 by striking identity theft1 at the election of the business entity and inserting fraudulent activity2 7,b7 by amending clause 7i7 to read as follows3 7i7 a copy of an identity theft report2 or 2 and 7,c7 by amending clause 7ii7 to read as follows3 7ii7 an affidavit of fact that is acceptable to the business entity for that purpose4 2 7#c7 in paragraph 7#c71 by striking identity theft and inserting fraudulent activity2 7#d7 by striking paragraph 7#h7 and redesignating paragraphs 7#i7 through 7#ac7 as paragraphs 7#h7 through 7#ab71 respectively2 and 7#e7 in paragraph 7#aj7 7as so redesignated71 by striking or a similar crime and inserting 1 fraud1 or a related crime4 #hjh4 ,required ,bureau to set procedures for reporting identity theft1 fraud1 and other related crime ,section #fba7;f77#b7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afhas7f77#b77 is amended-- 7#a7 in the paragraph heading1 by striking ,model form and inserting ,standardized affidavit2 7#b7 by striking ,the ,commission and inserting ,the ,bureau2 7#c7 by striking model form and inserting standardized affidavit2 7#d7 by inserting after identity theft the following3 1 fraud1 or a related crime1 or otherwise are harmed by the unauthorized disclosure of the consumer's financial or personally identifiable information12 and 7#e7 by striking fraud4 and inserting identity theft1 fraud1 or other related crime4 ,such standardized affidavit and procedures shall not include a requirement that a consumer obtain a police report44 #hji4 ,establishes the right to free credit monitoring and identity theft protection services for certain consumers ,section #fje;,a of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c-#a7;a771 as amended by section #hje1 is further amended by adding at the end the following3 7j7 ,credit monitoring and identity theft protection services 7#a7 ,in general ,upon the direct request of a consumer1 or individual acting on behalf of or as a personal representative of a consumer1 a consumer reporting agency described in section #fjc7p7 that maintains a file on the consumer and has received appropriate proof of the identity of the requester 7as described in section #ajbb4abc of title #ab1 ,code of ,federal ,regulations7 shall provide the consumer with credit monitoring and identity theft protection services not later than #a business day after receiving such request sent by postal mail1 toll-free telephone1 or secure electronic means as established by the agency4 7#b7 ,fees 7,a7 ,classes of consumers ,the ,bureau may establish classes of consumers eligible to receive credit monitoring and identity theft protection services free of charge4 7,b7 ,no fee ,a consumer reporting agency described in section #fjc7p7 may not charge a consumer a fee to receive credit monitoring and identity theft protection services if the consumer or a representative of the consumer-- 7i7 asserts in good faith a suspicion that the consumer has been or is about to become a victim of identity theft1 fraud1 or a related crime1 or harmed by the unauthorized disclosure of the consumer's financial or personally identifiable information2 7ii7 is unemployed and intends to apply for employment in the #fj-;day period beginning on the date on which the request is made2 7iii7 is a recipient of public welfare assistance2 7iv7 is an active duty military consumer2 7v7 is #fe years of age or older2 or 7vi7 is a member of a class established by the ,bureau under subparagraph 7,a74 7#c7 ,bureau rulemaking ,the ,bureau shall issue regulations-- 7,a7 to define the scope of credit monitoring and identity theft protection services required under this subsection2 and 7,b7 to set a fair and reasonable fee that a consumer reporting agency may charge a consumer 7other than a consumer described under paragraph 7#b77;,b77 for such credit monitoring and identity theft protection services4 7#d7 ,relation to ,state law ,this subsection does not annul1 alter1 or affect in any manner the meaning1 scope or applicability of the laws of any ,state relating to credit monitoring and identity theft protection services or other similar actions1 except to the extent those laws are inconsistent with any provision of this title1 and then only to the extent of the inconsistency4 ,for purposes of this subsection1 a term or provision of a ,state law is not inconsistent with the provisions of this subsection if the term or provision affords greater protection and benefit to the consumer than the protection and benefit provided under this subsection as determined by the ,bureau1 on its own motion or upon the petition of any interested party4 4 #haj4 ,ensures removal of inquiries resulting from identity theft1 fraud1 or other related crime from consumer reports ,section #fje7;a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c7a771 as amended by section #dja1 is further amended by adding at the end the following3 7#ad7 ,information about inquiries made for a credit report based on requests that the consumer reporting agency verifies were initiated as the result of identity theft1 fraud1 or other related crime4 4 ,,ix ,miscellaneous #ija4 ,definitions related to days ,section #fjc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a71 as amended by section #fja1 is further amended by adding at the end the following3 7bb7 ,definitions related to days 7#a7 ,calendar day2 day ,the term calendar day or day means a calendar day1 excluding any federally recognized holiday4 7#b7 ,business day ,the term business day means a day between and including ,monday to ,friday1 and excluding any federally recognized holiday4 4 #ijb4 ,technical correction related to risk-based pricing notices ,section #fae7;h77#h7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afham7 is amended-- 7#a7 in subparagraph 7,a71 by striking this section and inserting this subsection2 and 7#b7 in subparagraph 7,b71 by striking ,this section and inserting ,this subsection4 #ijc4 ,,fcra findings and purpose2 voids certain contracts not in the public interest 7a7 ,,fcra findings and purpose ,section #fjb of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha7;a77 is amended-- 7#a7 in subsection 7a7-- 7,a7 by amending paragraph 7#a7 to read as follows3 7#a7 ,many financial and non-financial decisions affecting consumers' lives depend upon fair1 complete1 and accurate credit reporting4 ,inaccurate and incomplete credit reports directly impair the efficiency of the financial system and undermine the integrity of using credit reports in other circumstances1 and unfair credit reporting and credit scoring methods undermine the public confidence which is essential to the continued functioning of the financial services system and the provision of many other consumer products and services4 2 and 7,b7 in paragraph 7#d71 by inserting after agencies the following3 1 furnishers1 and credit scoring developers2 and 7#b7 in subsection 7b7-- 7,a7 by striking ,it is the purpose of this title to require and inserting the following3 ,the purpose of this title is the following3 7#a7 ,to require 2 and 7,b7 by adding at the end the following3 7#b7 ,to prohibit any practices and procedures with respect to credit reports and credit scores that are not in the public interest4 4 7b7 ,voiding of certain contracts not in the public interest ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq471 as amended by section #gjc1 is further amended-- 7#a7 by adding at the end the following new section3 #fcf4 ,voiding of certain contracts not in the public interest 7a7 ,in general ,any provision contained in a contract that requires a person to not follow a provision of this title1 that is against the public interest1 or that otherwise circumvents the purposes of this title shall be null and void4 7b7 ,rule of construction ,nothing in subsection 7a7 shall be construed as affecting other provisions of a contract that are not described under subsection 7a74 2 and 7#b7 in the table of contents for such ,act1 by adding at the end the following new item3 #fcf4 ,voiding of certain contracts not in the public interest4 4 #ijd4 ,general ,bureau rulemaking ,except as otherwise provided1 not later than the end of the #b-year period beginning on the date of the enactment of this ,act1 the ,bureau of ,consumer ,financial ,protection shall issue final rules to implement the amendments made by this ,act4