,i #aaeth ,,congress #b;d ,session ,h4 ,r4 #faib ,,in ,,the ,,house ,,of ,,representatives ,june #bb1 #bjah,mr4 ,royce of ,california introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,energy and ,commerce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,credit ,repair ,organizations ,act to facilitate the development of consumer credit services1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,credit ,services ,protection ,act of #bjah4 #b4 ,protection of consumer credit services 7a7 ,in general ,the ,credit ,repair ,organizations ,act 7#ae ,u4,s4,c4 #afgi et seq47 is amended-- 7#a7 by striking title each place such term appears and inserting chapter2 7#b7 by striking ,,title ,,iv--,,credit ,,repair ,,organizations and inserting ,,title ,,iv--,,consumer ,,credit ,,services2 7#c7 by inserting before the table of contents for such ,act the following3 #a ,,credit ,,repair 2 7#d7 in section #djc7c77;,b7-- 7,a7 in clause 7ii71 by striking or at the end2 7,b7 in clause 7iii71 by striking the period and inserting 2 or2 and 7,c7 by adding at the end the following3 7iv7 any authorized credit services provider to the extent such provider offers1 sells1 provides1 or performs credit and identity protection services or credit education services 7as such terms are defined1 respectively1 under section #dbc74 2 and 7#e7 by inserting after section #dac the following3 #b ,,credit ,,and ,,identity ,,protection ,,and ,,credit ,,education ,sec4 #dba4 ,short title4 ,sec4 #dbb4 ,findings4 ,sec4 #dbc4 ,definitions4 ,sec4 #dbd4 ,promotion of credit and identity protection services and credit education services4 ,sec4 #dbe4 ,applicability of ,credit ,repair ,organizations ,act to activities of authorized credit services providers other than credit and identity protection services or credit education services4 ,sec4 #dbf4 ,relation to ,state law4 ,sec4 #dbg4 ,process for registering as authorized credit services provider4 #dba4 ,short title ,this chapter may be cited as the ,credit ,services ,protection ,act4 #dbb4 ,findings ,the ,congress makes the following findings3 7#a7 ,consumer reports and credit scores have become widely available to consumers4 ,in order to fully benefit from such access1 however1 consumers also need the tools to understand and improve their credit standing4 ,by doing so consumers can gain greater access to credit and on better terms1 which can help alleviate poverty1 sustain the middle class1 and grow the economy4 7#b7 ,as cyber-attacks and data breaches have proliferated1 consumers' credit standing has also become increasingly threatened by identity theft1 fraud1 and other forms of unauthorized access4 ,to help protect against these threats1 consumers turn to credit monitoring and other credit and identity protection tools and services4 7#c7 ,enacted in #aiif1 the ,credit ,repair ,organizations ,act 7#ae ,u4,s4,c4 #afgi et seq47 remains an important law to protect consumers from exploitation1 but in recent years the law also has worked to prevent credit education and credit and identity theft protection services from reaching consumers4 7#d7 ,the provision of credit and identity protection services and credit education services should be accompanied by reasonable and appropriate consumer protections4 7#e7 ,persons who choose to register as an authorized credit services provider pursuant to section #dbg and who offer1 sell1 provide1 or perform credit and identity protection services and credit education services should have the certainty of a safe harbor from the ,credit ,repair ,organizations ,act that this chapter providers4 #dbc4 ,definitions ,for the purposes of this chapter1 the following definitions apply3 7#a7 ,authorized credit services provider ,the term authorized credit services provider means a person that has registered as an authorized credit services provider under section #dbg4 7#b7 ,credit ,the term credit has the meaning given that term under section #djc of the ,credit ,repair ,organizations ,act4 7#c7 ,credit and identity protection service ,the term credit and identity protection service-- 7,a7 means any service offered1 sold1 provided1 or performed to or for consumers for the express or implied purpose of protecting a consumer's credit standing or to detect or prevent the commission or remediate the consequences of identity theft1 fraud1 data breach1 or other unauthorized financial or credit-related activity2 and 7,b7 does not include-- 7i7 advising or assisting in any activity described in subparagraphs 7,a7 through 7,c7 of section #dbg7;b77#b72 7ii7 any services marketed to a consumer during a call or session with a consumer reporting agency 7as defined under section #fjc7;f7 of the ,fair ,credit ,reporting ,act7 regarding the exercise of any consumer right under the ,fair ,credit ,reporting ,act or applicable ,state laws prior to the consumer reporting agency meeting its obligations under the ,fair ,credit ,reporting ,act or applicable ,state law required for such call or session2 or 7iii7 any services provided without compliance with sections #dbd7;c7 and #dbd7;d74 7#d7 ,credit education service ,the term credit education service-- 7,a7 means any service offered1 sold1 provided1 or performed to or for consumers for the express or implied purpose of counseling1 educating1 or assisting consumers in understanding1 managing1 or prospectively improving their credit standing1 consumer report1 credit scores1 or access to credit2 and 7,b7 does not include-- 7i7 advising or assisting in any activity described in subparagraphs 7,a7 through 7,c7 of section #dbg7;b77#b72 7ii7 any services marketed to a consumer during a call or session with a consumer reporting agency 7as defined under section #fjc7;f7 of the ,fair ,credit ,reporting ,act7 regarding the exercise of any consumer right under the ,fair ,credit ,reporting ,act or applicable ,state laws prior to the consumer reporting agency meeting its obligations under the ,fair ,credit ,reporting ,act or applicable ,state law required for such call or session2 or 7iii7 any services provided without compliance with sections #dbd7;c7 and #dbd7;d74 7#e7 ,consumer ,the term consumer has the meaning given that term under section #djc of the ,credit ,repair ,organizations ,act4 7#f7 ,consumer report ,the term consumer report has the meaning given that term under section #fjc of the ,fair ,credit ,reporting ,act4 #dbd4 ,promotion of credit and identity protection services and credit education services 7a7 ,inapplicability of the ,credit ,repair ,organizations ,act to credit and identity protection services and credit education services ,the ,credit ,repair ,organizations ,act 7#ae ,u4,s4,c4 #afgi et seq47 shall not apply to any authorized credit services provider to the extent such provider offers1 sells1 provides1 or performs credit and identity protection services or credit education services4 7b7 ,prohibited practices ,no authorized credit services provider may-- 7#a7 make any statement1 or counsel or advise any consumer to make any statement1 which is untrue or misleading 7or which1 upon the exercise of reasonable care1 should be known by the authorized credit services provider officer1 employee1 agent1 or other person to be untrue or misleading7 with respect to any consumer's credit worthiness1 credit standing1 or credit capacity to-- 7,a7 any consumer reporting agency 7as defined under section #fjc7;f7 of the ,fair ,credit ,reporting ,act72 or 7,b7 any person-- 7i7 who has extended credit to the consumer2 or 7ii7 to whom the consumer has applied or is applying for an extension of credit2 7#b7 make any statement1 or counsel or advise any consumer to make any statement1 the intended effect of which is to alter the consumer's identification to prevent the display of the consumer's credit record1 history1 or rating for the purpose of concealing adverse information that is accurate and not obsolete to-- 7,a7 any consumer reporting agency 7as defined under section #fjc7;f7 of the ,fair ,credit ,reporting ,act72 or 7,b7 any person-- 7i7 who has extended credit to the consumer2 7ii7 to whom the consumer has applied or is applying for an extension of credit2 or 7iii7 who has a permissible purpose to obtain a consumer report under section #fjd of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;b7 and is making an eligibility determination in a transaction initiated by the consumer2 7#c7 make or use any untrue or misleading statement of the services offered by the authorized credit services provider2 or 7#d7 engage1 directly or indirectly1 in any act1 practice1 or course of business that constitutes or results directly in the commission of1 or attempt to commit1 a fraud or deception on any person in connection with the offer or sale of the services of the authorized credit services provider4 7c7 ,mandatory disclosure ,except as otherwise provided by law1 an authorized credit services provider shall disclose1 in writing or electronically1 the following disclosure1 or a substantially similar disclosure1 to the consumer prior to the authorized credit services provider commencing credit and identity protection services or credit education services to the consumer3 ,consumer ,credit ,file ,rights ,you have a right to dispute inaccurate information in your credit report free of charge by contacting the credit bureau directly4 ,however1 neither you nor any other company or organization has the right to have accurate1 current1 and verifiable information removed from your credit report4 ,under ,federal law1 the credit bureau must remove accurate1 negative information from your report only if it is over #g years old4 ,bankruptcy information can be reported for #aj years4 ,it is unlawful to conceal1 distort1 or otherwise provide misleading information to a credit bureau4 ,you have a right to obtain a free copy of your credit report annually from each of the three nationwide credit bureaus at www4annualcreditreport4com4,you have a right to obtain a copy of your credit report from a credit bureau at any other time for a reasonable fee4 ,there is no fee1 however1 if you have been turned down for credit1 employment1 insurance1 or a rental dwelling because of information in your credit report within the preceding #fj days4 ,the credit bureau must provide at no cost to you someone to explain to you any information in the credit file disclosure you receive from the credit reporting agency4 ,you are entitled to receive a free copy of your credit report if you are unemployed and intend to apply for employment in the next #fj days1 if you are a recipient of public welfare assistance1 or if you have reason to believe that there is inaccurate information in your credit report due to fraud4,credit bureaus are required to follow reasonable procedures to ensure that the information they report is accurate4 ,however1 mistakes may occur4,you may1 on your own1 notify a credit bureau in writing1 through a toll-free telephone number established by the credit bureau or through a function of the credit bureau's website1 if available1 that you dispute the accuracy of information in your credit file4 ,the credit bureau must then investigate your dispute and modify or remove inaccurate or incomplete information4 ,the credit bureau may not charge any fee for this service4 ,any pertinent information and copies of all documents you have concerning an error should be given to the credit bureau4,if the credit bureau's investigation does not resolve the dispute to your satisfaction1 you may send a brief statement to the credit bureau1 to be kept in your file1 explaining why you think the record is inaccurate4 ,the credit bureau must include a summary of your statement about disputed information with any report it issues about you4,there are many different credit score models that can give an assessment of your relative risk of default for the same credit report4 ,this risk of default is typically expressed in a three-digit number known as a credit score4 ,there are various types of credit scores1 and lenders use a variety of different types of credit scores to make lending decisions4,the ,federal ,trade ,commission is one of the agencies that regulates credit bureaus4 ,for more information visit www4consumer4ftc4gov4 ,you may also contact the ,bureau of ,consumer ,financial ,protection at www4consumerfinance4gov4 7d7 ,right to termination of contract 7#a7 ,in general ,a consumer shall have the right to terminate a contract for credit and identity theft protection services and credit education services within three business days beginning on the date that the consumer enters into such contract with the authorized credit services provider4 7#b7 ,reasonable value provided ,if a consumer terminates a contract pursuant to paragraph 7#a71 the authorized credit services provider shall be entitled to the reasonable value for services actually rendered prior to termination1 not to exceed the total amount paid by the consumer1 but an authorized credit services provider is not entitled to retain any fees if no services were rendered4 7e7 ,enforcement by ,federal ,trade ,commission ,a violation of this section shall be treated as a violation of a rule issued under section #ah7;a77#a77;,b7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b77 regarding unfair or deceptive acts or practices4 ,the ,federal ,trade ,commission shall enforce this section in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms and provisions of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 were incorporated into and made a part of this section4 #dbe4 ,applicability of ,credit ,repair ,organizations ,act to activities of authorized credit services providers other than credit and identity protection services or credit education services 7a7 ,enforcement by ,federal ,trade ,commission ,the ,credit ,repair ,organizations ,act 7#ae ,u4,s4,c4 #afgi et seq47 shall be enforced solely by the ,federal ,trade ,commission in accordance with subsections 7a7 and 7b7 of section #daj of that ,act with respect to any authorized credit services provider4 7b7 ,civil liability and administrative enforcement ,sections #dji and #daj7;c7 of the ,credit ,repair ,organizations ,act 7#ae ,u4,s4,c4 #afgi et seq47 shall not apply to any authorized credit services provider4 #dbf4 ,relation to ,state law 7a7 ,exemption for authorized credit services providers ,the provisions of this chapter supersede any law or regulation of any ,state with respect to the subject matter of this chapter or the ,credit ,repair ,organizations ,act 7#ae ,u4,s4,c4 #afgi et seq47 to the extent that the ,state law would apply to any authorized credit services provider4 7b7 ,state laws regarding unfair or deceptive acts or practices not affected ,except for any provision contained in any ,state law superseded under subsection 7a71 this section is not intended to preempt any law of any ,state that prohibits unfair or deceptive acts or practices1 including the making of false or misleading statements in the marketing of products or services4 #dbg4 ,process for registering as authorized credit services provider 7a7 ,application for registration ,a person that seeks to be registered as an authorized credit services provider under the provisions of this chapter shall submit to the ,federal ,trade ,commission an application for registration that contains the information described in subsection 7b74 7b7 ,required information ,an application for registration under this section shall contain the following3 7#a7 ,a statement setting forth the person's full corporate organization1 all affiliates of the person1 and all officers1 directors1 and any other individuals with substantial management oversight over the person4 7#b7 ,a statement that the person has elected to adhere to1 and duly represents and warrants annually and publicly1 the following standards3 7,a7 ,the person1 or any of its affiliates1 does not advise or assist consumers in modifying or removing1 or attempting to modify or remove1 adverse information that is accurate and not obsolete from a consumer's consumer report4 7,b7 ,the person1 or any of its affiliates1 does not assist consumers in altering a consumer's existing credit record1 credit history1 or credit score by concealing or distorting1 or attempting to conceal or distort1 adverse information that is accurate and not obsolete4 7,c7 ,the person1 or any of its affiliates1 does not assist consumers in interacting with consumer reporting agencies described in section #fjc7;f7 of the ,fair ,credit ,reporting ,act in any manner which interferes with the lawful operation of such consumer reporting agencies4 7,d7 ,the person1 or any of its affiliates1 does not use the term credit repair in its marketing of credit and identity protection services and credit education services4 7,e7 ,the person provides consumers with the mandatory disclosure described in section #dbd7;c7 prior to entering into a contract or agreement for services1 and a right to cancellation1 in accordance with the provisions of this chapter4 7#c7 ,a copy of the policies and procedures adopted and implemented by the person to ensure and document compliance with the provisions of this ,act1 including1 policies and procedures for-- 7,a7 executing a contract with the consumer to commence the authorized services2 7,b7 providing the mandatory disclosure set forth in subsection #dbd7;c72 7,c7 providing consumers with the right to terminate a contract for services in accordance with subsection #dbd7;d72 and 7,d7 upon termination1 determining the reasonable value of services actually rendered1 in accordance with the provisions of #dbd7;d77#b74 7#d7 ,a general description of the credit and identity protection services and credit education services that the person plans to offer1 sell1 provide1 or perform to or for consumers under the provisions of this ,act4 7#e7 ,a statement that the person will-- 7,a7 on a biennial basis1 provide to the ,federal ,trade ,commission an update1 if needed1 to the person's corporate organization1 policies and procedures1 and general description of services provided pursuant to this subsection2 7,b7 on a biennial basis1 obtain an assessment from a qualified1 objective1 independent1 third-party professional of the person's actual compliance record with the representations and warranties in paragraph 7#b72 and 7,c7 retain such assessment and provide it to the ,federal ,trade ,commission as soon as reasonably practicable1 but in no event more than #cj business days1 after the ,federal ,trade ,commission requests the assessment4 7c7 ,consideration of applications and expedited response 7#a7 ,timing ,the ,federal ,trade ,commission shall act by approving or denying applications submitted pursuant to this section within #fj days of the submission1 and shall set forth in writing its conclusions with regard to such requests4 7#b7 ,additional information ,the ,federal ,trade ,commission may request that an applicant provide additional information that is reasonably related to one or more of the application elements enumerated in subsection 7b71 including by requesting that the applicant submit supplemental materials1 answer questions in writing1 or appear in person before the ,commissioners or their designee4 7#c7 ,deemed registration ,an application that has not been acted upon by the ,federal ,trade ,commission within #fj days of submission shall be deemed as approved and the person shall be registered as an authorized credit services provider4 7#d7 ,extension of time for additional information ,if the ,federal ,trade ,commission requests additional information pursuant to paragraph 7#b71 the applicant shall have up to #cj days to respond in writing or appear before the ,commission as requested4 ,the ,commission shall then have an additional #cj days to act upon such response1 and if not acted upon within #cj days1 the application shall be deemed as approved and the person shall be registered as an authorized credit services provider4 ,in no event shall the status of an application remain unresolved beyond #abj days from the date of its original submission4 7d7 ,revocation 7#a7 ,in general ,the ,federal ,trade ,commission shall have the authority to rescind a person's registration that was issued under this section if the ,commission determines that the person has failed to comply with the obligations and standards set forth in this ,act4 7#b7 ,opportunity to cure defects ,the ,federal ,trade ,commission shall provide an authorized credit services provider a reasonable opportunity to cure any defects before moving to revoke a person's registration as an authorized credit services provider4 7#c7 ,retroactive ,revocation ,if the ,federal ,trade ,commission determines that a person who has registered as an authorized credit services provider1 or any of the person's affiliates1 has-- 7,a7 engaged in any activity described under subparagraphs 7,a7 through 7,c7 of subsection 7b77#b72 7,b7 knowingly made false statements in any written statement required under this chapter2 or 7,c7 willfully or repeatedly violated1 or willfully or repeatedly failed to observe1 any provision of this ,act1 the ,federal ,trade ,commission shall have the authority to deem a revocation effective at the time immediately prior to when the activity occurred4 7e7 ,judicial review of revocation 7#a7 ,in general ,any person for whom a registration under this section has been revoked may obtain review of such revocation in a court of appeals of the ,united ,states in accordance with the procedures set forth in section #e7;c7 of the ,federal ,trade ,commission ,act1 except that-- 7,a7 the court of appeals shall hold unlawful and set aside a revocation if the court finds that the ,federal ,trade ,commission's action is not supported by substantial evidence in the adjudicatory record2 and 7,b7 the filing of a petition for review shall operate as a stay of the revocation until the date on which the determination of the court is final 7including any appeal of the determination71 but in the event the court's final determination upholds revocation1 the effective date of the revocation shall be the date as determined by the ,federal ,trade ,commission4 7#b7 ,adjudicatory record defined ,for purposes of this subsection1 the term adjudicatory record means the ,federal ,trade ,commission's statement of basis and purpose for revocation1 the person's registration application materials1 any written submissions by the person or transcripts of oral testimony1 and any other evidence that the ,commission considers relevant to the revocation4 7#c7 ,additional submissions and presentations ,if the person or the ,federal ,trade ,commission applies to the court for leave to make additional oral submissions or written presentations and shows to the satisfaction of the court that such submissions and presentations would be material and that there were reasonable grounds for the submissions and failure to make such submissions and presentations in the proceeding before the ,commission1 the court may order the ,commission to provide additional opportunity to make such submissions and presentations4 4 7b7 ,effective date ,the amendments made by this section shall take effect after the #fj-;day period beginning on the date of the enactment of this ,act4