,,ii #aaeth ,,congress #ast ,session ,s4 #aghf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #aa1 #bjag,mr4 ,schatz 7for himself1 ,ms4 ,warren1 ,mr4 ,merkley1 ,mrs4 ,mc,caskill1 ,mr4 ,blumenthal1 and ,mr4 ,sanders7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,fair ,credit ,reporting ,act to enhance the accuracy of credit reporting and provide greater rights to consumers who dispute errors in their credit reports1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,stopping ,errors in ,consumer ,use and ,r,eporting ,act of #bjag or the ,,secure ,act of #bjag4 #b4 ,legal recourse for consumers 7a7 ,injunctive relief ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq47 is amended-- 7#a7 in section #faf 7#ae ,u4,s4,c4 #afhan7-- 7,a7 in subsection 7a71 in the subsection heading1 by striking 7a7 ,in general4-- and inserting 7a7 ,damages4--2 7,b7 by redesignating subsections 7c7 and 7d7 as subsections 7d7 and 7e71 respectively2 and 7,c7 by inserting after subsection 7b7 the following3 7c7 ,injunctive relief 7#a7 ,in general ,in addition to any other remedy under this section1 a court may award injunctive relief to require compliance with the requirements imposed under this title with respect to any consumer4 7#b7 ,costs and attorney's fees ,in the event of any successful action for injunctive relief under this subsection1 a court may award to the prevailing party costs and reasonable attorney's fees 7as determined by the court7 incurred by the prevailing party during the action4 2 and 7#b7 in section #fag 7#ae ,u4,s4,c4 #afhao7-- 7,a7 in subsection 7a71 in the subsection heading1 by striking 7a7 ,in general4-- and inserting 7a7 ,damages4--2 7,b7 by redesignating subsection 7b7 as subsection 7c72 and 7,c7 by inserting after subsection 7a7 the following3 7b7 ,injunctive relief 7#a7 ,in general ,in addition to any other remedy under this section1 a court may award injunctive relief to require compliance with the requirements imposed under this title with respect to any consumer4 7#b7 ,costs and attorney's fees ,in the event of any successful action for injunctive relief under this subsection1 a court may award to the prevailing party costs and reasonable attorney's fees 7as determined by the court7 incurred by the prevailing party during the action4 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 in the subparagraph heading1 by striking 7,a7 ,knowing violations4-- and inserting 7,a7 ,negligent1 willful1 or knowing violations4--2 and 7#b7 in the first sentence1 by inserting negligent1 willful1 or before knowing4 #c4 ,increased requirements for consumer reporting agencies and furnishers of information 7a7 ,provision and consideration of documentation provided by consumers ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq47 is amended-- 7#a7 in section #faa 7#ae ,u4,s4,c4 #afha;i7-- 7,a7 in subsection 7a7-- 7i7 in paragraph 7#b7-- 7,i7 in subparagraph 7,a71 in the second sentence1 by inserting 1 including all documentation provided by the consumer after received from the consumer or reseller2 and 7,,ii7 in subparagraph 7,b71 by inserting 1 including all documentation provided by the consumer1 after from the consumer or the reseller2 and 7ii7 in paragraph 7#d71 by inserting 1 including all documentation1 after relevant information2 and 7,b7 in subsection 7f77#b77;,b77ii71 by inserting 1 including all documentation1 after relevant information2 and 7#b7 in section #fbc 7#ae ,u4,s4,c4 #afhas-#b7-- 7,a7 in subsection 7a77#h77;,e71 by striking clause 7ii7 and inserting the following3 7ii7 review and consider all relevant information1 including all documentation1 provided by the consumer with the notice2 2 and 7,b7 in subsection 7b77#a71 by striking subparagraph 7,b7 and inserting the following3 7,b7 review and consider all relevant information1 including all documentation1 provided by the consumer reporting agency under section #faa7;a77#b72 4 7b7 ,gathering and reporting of information relating to consumer disputes ,section #faa of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;i7 is amended by adding at the end the following3 7g7 ,gathering and reporting of information relating to consumer disputes 7#a7 ,reports required ,the ,bureau shall provide reports regarding the disputes described in subsection 7a77#a7 received by consumer reporting agencies in such intervals and to such parties as the ,bureau deems appropriate4 7#b7 ,gathering of information ,the ,bureau shall prescribe rules for the gathering of information relating to disputes described in subsection 7a77#a7 received by consumer reporting agencies to be used in generating the reports under paragraph 7#a71 including rules establishing-- 7,a7 the type and format of information that the ,bureau shall receive from each consumer reporting agency2 and 7,b7 the frequency with which the ,bureau shall receive the information from consumer reporting agencies4 4 7c7 ,accuracy compliance procedures ,section #fjg of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;e7 is amended by striking subsection 7b7 and inserting the following3 7b7 ,accuracy of report 7#a7 ,in general ,a consumer reporting agency shall follow reasonable procedures when preparing a consumer report to ensure the maximum possible accuracy of the information concerning the individual to whom the consumer report relates4 7#b7 ,bureau rule to ensure maximum possible accuracy 7,a7 ,proposed rule ,not later than #a year after the date of enactment of the ,stopping ,errors in ,consumer ,use and ,r,eporting ,act of #bjag1 the ,bureau shall issue a proposed rule establishing the procedures that a consumer reporting agency shall follow to ensure maximum possible accuracy of all consumer reports furnished by the agency in compliance with this subsection4 7,b7 ,considerations ,when formulating the rule required under subparagraph 7,a71 the ,bureau shall consider if requiring the matching of the following information would improve the accuracy of consumer reports3 7i7 ,the first name and last name of a consumer4 7ii7 ,the date of birth of a consumer4 7iii7 ,all #i digits of the social security number of a consumer4 7iv7 ,any other information that the ,bureau determines would aid in ensuring maximum possible accuracy of all consumer reports furnished by consumer reporting agencies in compliance with this subsection4 4 7d7 ,responsibilities of furnishers of information to consumer reporting agencies ,section #fbc7;a77#h77;,f77i77,,ii7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afhas-#b7;a77#h77;,f77i77,,ii77 is amended by inserting 1 and does not include any new or additional information that would be relevant to a reinvestigation before the period at the end4 7e7 ,disclosures to consumers ,section #fji of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;g7 is amended-- 7#a7 in subsection 7a77#c77;,b7-- 7,a7 in clause 7i71 by striking and at the end2 and 7,b7 by striking clause 7ii7 and inserting the following3 7ii7 the address and telephone number of the person2 and 7iii7 the permissible purpose of the person for obtaining the consumer report1 including the specific type of credit product that is extended1 reviewed1 or collected1 as described in section #fjd7;a77#c77;,a74 2 7#b7 in subsection 7f7-- 7,a7 by amending paragraph 7#g77;,a7 to read as follows3 7,a7 supply the consumer with a credit score that-- 7i7 is derived from a credit scoring model that is widely distributed to users by the consumer reporting agency for the purpose of any extension of credit or other transaction designated by the consumer who is requesting the credit score2 or 7ii7 is widely distributed to lenders of common consumer loan products and predicts the future credit behavior of the consumer2 and 2 and 7,b7 in paragraph 7#h71 by inserting 1 except that a credit score shall be provided free of charge to the consumer if requested in connection with a free annual consumer report described in section #fab7;a7 before the period at the end2 and 7#c7 in subsection 7g77#a7-- 7,a7 in subparagraph 7,a77ii71 by striking subparagraph 7,d7 and inserting subparagraph 7,c72 7,b7 in subparagraph 7,b77ii71 by striking consistent with subparagraph 7,c72 7,c7 by striking subparagraph 7,c72 and 7,d7 by redesignating subparagraphs 7,d7 through 7,g7 as subparagraphs 7,c7 through 7,f71 respectively4 7f7 ,notification requirements 7#a7 ,adverse information notification ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq47 is amended-- 7,a7 in section #fab 7#ae ,u4,s4,c4 #afha;j71 by striking subsection 7b7 and inserting the following3 7b7 ,free disclosure after notice of adverse action or offer of credit on materially less favorable terms 7#a7 ,in general ,not later than #ad days after the date on which a consumer reporting agency receives a notification under subsection 7a77#b7 or 7h77#f7 of section #fae1 or from a debt collection agency affiliated with the consumer reporting agency1 the consumer reporting agency shall make1 without charge to the consumer1 all disclosures required in accordance with the rules prescribed by the ,bureau under section #fji7;h74 7#b7 ,transition period ,during the period beginning on the effective date of the ,stopping ,errors in ,consumer ,use and ,r,eporting ,act of #bjag and ending on the date on which the ,bureau finalizes the rule required under section #fji7;h71 a consumer reporting agency that is required to make disclosures under this subsection shall provide to the consumer a copy of the current credit report on the consumer and any other disclosures required under this ,act or the ,stopping ,errors in ,consumer ,use and ,r,eporting ,act of #bjag1 without charge to the consumer4 2 and 7,b7 in section #fae7;a7 7#ae ,u4,s4,c4 #afham7a77-- 7i7 by redesignating paragraphs 7#b71 7#c71 and 7#d7 as paragraphs 7#c71 7#d71 and 7#e71 respectively2 7ii7 by inserting after paragraph 7#a7 the following3 7#b7 direct the consumer reporting agency that provided the consumer report that was used in the decision to take the adverse action to provide the consumer with the disclosures described in section #fab7;b72 2 and 7iii7 in paragraph 7#e71 as so redesignated-- 7,i7 in the matter preceding subparagraph 7,a71 by striking of the consumer's right2 7,,ii7 by striking subparagraph 7,a7 and inserting the following3 7,a7 that the consumer shall receive a copy of the consumer report with respect to the consumer1 free of charge1 from the consumer reporting agency that furnished the consumer report2 and 2 and 7,,iii7 in subparagraph 7,b71 by inserting of the right of the consumer before to dispute4 7#b7 ,notification in cases of less favorable terms ,section #fae7;h7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afham7h77 is amended-- 7,a7 in paragraph 7#a71 by striking paragraph 7#f7 and inserting paragraph 7#g72 7,b7 in paragraph 7#b71 by striking paragraph 7#f7 and inserting paragraph 7#g72 7,c7 in paragraph 7#e77;,c71 by striking may obtain and inserting shall receive2 7,d7 by redesignating paragraphs 7#f71 7#g71 and 7#h7 as paragraphs 7#g71 7#h71 and 7#i71 respectively2 and 7,e7 by inserting after paragraph 7#e7 the following3 7#f7 ,reports provided to consumers ,a person who uses a consumer report as described in paragraph 7#a7 shall notify and direct the consumer reporting agency that provided the consumer report to provide the consumer with the disclosures described in section #fab7;b74 4 7#c7 ,notification of subsequent submissions of negative information ,section #fbc7;a77#g77;,a77ii7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afhas-#b7;a77#g77;,a77ii77 is amended by striking account1 or customer and inserting or account4 7#d7 ,bureau rule defining certain disclosure requirements ,section #fji of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;g7 is amended by adding at the end the following3 7h7 ,bureau rule defining certain disclosure requirements 7#a7 ,proposed rule ,not later than #a year after the date of enactment of the ,stopping ,errors in ,consumer ,use and ,r,eporting ,act of #bjag1 the ,bureau shall publish a proposed rule to implement the disclosure requirements described in section #fab7;b74 7#b7 ,considerations ,in formulating the rule required under paragraph 7#a71 the ,bureau shall consider-- 7,a7 what information would enable consumers to-- 7i7 determine the reasons for which a person-- 7,i7 took adverse action2 or 7,,ii7 offered credit on materially less favorable terms2 and 7ii7 verify the accuracy of that information2 and 7,b7 how to provide the information described in subparagraph 7,a7 while protecting consumer privacy1 including procedures to ensure that the information is provided to the consumer at the appropriate address4 4 #d4 ,regulatory reform ,section #fba of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afhas7 is amended by adding at the end the following3 7h7 ,consumer reporting agency registry 7#a7 ,establishment of registry ,not later than #ahj days after the date of enactment of the ,stopping ,errors in ,consumer ,use and ,r,eporting ,act of #bjag1 the ,bureau shall establish #c publicly available registries of consumer reporting agencies1 including a registry that contains-- 7,a7 each consumer reporting agency that compiles and maintains files on consumers on a nationwide basis2 7,b7 each nationwide specialty consumer reporting agency2 and 7,c7 all other consumer reporting agencies that are not included under section #fjc7p7 or #fjc7x74 7#b7 ,registration requirement ,each consumer reporting agency shall register with a registry established by the ,bureau under this subsection in a timeframe established by the ,bureau4 4 #e4 ,identity theft protection for minors 7a7 ,in general ,the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq47 is amended by inserting after section #fje;,b 7#ae ,u4,s4,c4 #afha;c-#b7 the following3 #fje;,c4 ,additional protections for credit reports of minor consumers 7a7 ,definitions ,in this section-- 7#a7 the term blocked file means a file of a minor consumer with respect to which1 under this section1 a consumer reporting agency-- 7,a7 maintains with the name1 social security number1 date of birth1 and1 if applicable1 any credit information of the minor consumer2 7,b7 may not provide any person with a consumer report of the minor consumer2 and 7,c7 blocks the input of any information1 except with permission from a covered guardian of the minor consumer2 7#b7 the term covered guardian means-- 7,a7 the legal guardian of a minor child2 7,b7 the custodian of a minor child2 or 7,c7 in the case of a child in foster care1 the ,state agency or ,indian tribe or tribal organization responsible for the foster care of the child2 and 7#c7 the term minor consumer means a consumer who has not attained #af years of age4 7b7 ,blocking a file ,a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis shall1 upon request by1 and receipt of appropriate proof of identity of1 a minor consumer or the covered guardian of a minor consumer-- 7#a7 create a blocked file for the minor consumer2 or 7#b7 convert a file of the minor consumer already in existence to a blocked file4 7c7 ,unblocking a file ,a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis shall unblock a blocked file-- 7#a7 upon request by the covered guardian of a minor consumer2 7#b7 if the file was blocked as a result of a material misrepresentation1 including a representation that-- 7,a7 the consumer was a minor consumer when the consumer was not a minor consumer as of the date on which the representation was made2 and 7,b7 an individual was the covered guardian of a minor consumer when the individual was not the covered guardian of the minor consumer as of the date on which the representation was made2 7#c7 on the date of the #afth birthday of the minor consumer2 or 7#d7 if the minor consumer becomes emancipated under the law of the ,state in which the minor consumer resides1 on the date of the emancipation of the minor consumer4 7d7 ,regulations ,the ,bureau shall promulgate regulations to carry out this section4 7e7 ,fees 7#a7 ,in general ,a credit reporting agency may charge a fair and reasonable fee1 as determined by the ,bureau1 to create a blocked file or to unblock a file4 7#b7 ,exemption ,the ,bureau may exempt an individual who suspects that the individual has been a victim of fraud or identity theft from a fee described in paragraph 7#a74 7f7 ,exceptions ,nothing in this section may be construed as requiring a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis to prevent a ,federal1 ,state1 or local law enforcement agency from accessing a blocked file4 4 7b7 ,table of contents amendment ,the table of contents of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha et seq47 is amended by inserting after the item relating to section #fje;,b the following3 #fje;,c4 ,additional protections for credit reports of minor consumers4 4 #f4 ,study of a public credit reporting system 7a7 ,study ,not later than #ahj days after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall conduct a study-- 7#a7 of credit systems in the international credit system with government-administered consumer credit reporting systems2 7#b7 of available information regarding the accuracy of government-administered consumer credit reporting systems that are in existence as of the date on which the ,comptroller ,general begins conducting the study2 7#c7 to evaluate the feasibility of a national1 government-administered consumer credit reporting system2 7#d7 of any consumer benefits that might reasonably be expected to result from a government-administered consumer credit reporting system2 and 7#e7 of any costs that might result from a government-administered consumer credit reporting system in the ,united ,states4 7b7 ,publication of findings ,not later than #ah months after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall publish the findings of the study conducted under subsection 7a74 #g4 ,effective date ,except as otherwise provided in this ,act and the amendments made by this ,act1 this ,act and the amendments made by this ,act shall take effect on the date that is #ahj days after the date of enactment of this ,act4