,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #cfad  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #b1 #bjai,mr4   
,lawson ( ,florida introduc$ ! foll[+   
bill2 :i* 0 ref]r$ to ! ,committee on   
,f9ancial ,s]vices  ,a ,,bill  ,to am5d 
! ,fair ,cr$it ,report+ ,act to ban !   
use ( cr$it in=mation = mo/ employm5t   
decisions1 & = o!r purposes4  #a4 ,%ort 
title ,?is ,act may be cit$ z !         
,re/rict+ ,cr$it ,*ecks = ,employm5t    
,decisions ,act4  #b4 ,f9d+s ,congress  
f9ds ! foll[+3  7#a7 ,! use ( cr$it     
reports z a factor 9 mak+ hir+ decisions
 has be5 f\nd to be preval5t 9 a div]se 
array ( occupations1 & is n limit$ to   
c]ta9 high-level managem5t or executive 
positions4  7#b7 ,accord+ to ! ,cali=nia
 ,labor ,f$]ation1 only #be p]c5t (     
employ]s rese>*$ ! cr$it hi/ory ( job   
applicants 9 #aiih4 ,h[ev]1 ?is practice
 _h increas$ to #dc p]c5t by #bjjf & to 
#fj p]c5t by #bjaa4  7#c7 ,a /udy titl$ 
,d ,job ,applicant ,cr$it ,hi/ories     
,pr$ict ,job ,p]=mance ,appraisal ,rat+s

 or ,t]m9ation ,decisions81 publi%$ 9   
#bjab1 f\nd t1 :ile cr$it hi/ory might  
conceptually measure a p]son's level (  
responsibility1 ability to meet         
deadl9es1 dep5dability1 or integrity1 x 
does n1 9 practice1 actually pr$ict an  
employee's p]=mance or likelihood to    
quit4 ,cr$it reports conta9 _m          
inaccuracies & cr$it hi/ory c be        
contam9at$ by ev5ts t are sometimes     
outside a p]son's control1 su* z a sudd5
 m$ical exp5se aft] an accid5t or ! loss
 ( a job dur+ an economic d[nturn4 ,!   
/udy f\nd t !re is no b5efit f us+ cr$it
 hi/ory to pr$ict job p]=mance or       
turnov]4  7#d7 ,despite ! abs5ce ( data 
%[+ a correlation betwe5 job p]=mance & 
cr$it-wor?9ess1 employ]s cont9ue to use 
cr$it *ecks z a proxy = assess+ "* &    
integrity4 ,accord+ to a #bjab ,society 
= ,human ,res\rce ,managem5t survey1    
organizations indicat$ t !y us$ cr$it   
*ecks on job c&idates prim>ily to r$uce 
or prev5t !ft & embezzlem5t & to m9imize
 legal liability = neglig5t hir+4  7#e7 

,! use ( cr$it *ecks = employm5t        
purposes creates a true cat*-#bb =      
unemploy$ p ) impair$ cr$it4 ,= example1
 ! f9ancial h>d%ip caus$ by los+ a job  
may cause "s unemploy$ individuals to   
make late or p>tial paym5ts on _! bills1
 b _! poor cr$it /&+ caus$ by ?is       
negative in=mation on _! consum] report 
c also imp$e _! *ances ( obta9+ a new   
job to end _! f9ancial di/ress4  7#f7 ,a
 ,septemb] #bjad report by ! ,new ,york 
,city ,c\ncil's ,committee on ,civil    
,rights not$ t1 = ^? :o h be5 unemploy$ 
= an ext5d$ p]iod ( "t & ^: cr$it has   
suff]$ z !y fell beh9d on bills1 ! use (
 cr$it reports 9 ! hir+ process c       
exac]bate & p]petuate an already        
prec>i\s situation4  7#g7 ,9 a ,m>*     
#bjac ,demos report titl$ ,discr$it$3   
,h[ ,employm5t ,cr$it ,*ecks ,keep ,out 
,qualifi$ ,work]s ,out ( a ,job1 "o 9   
f\r survey p>ticipants :o 7 unemploy$   
said t a pot5tial employ] _h reque/$ to 
*eck _! cr$it report z "p ( a job       
application4 ,among job applicants )    

blemi%$ cr$it hi/ories 9 ! survey1 "o 9 
sev5 _h be5 told t !y 7 n be+ hir$      
because ( _! cr$it hi/ory4  7#h7 ,:ile  
job applicants mu/ give prior approval =
 a prospective employ] to pull _! cr$it 
reports "u ! ,,fcra1 ?is au?orization1 z
 a practical matt]1 does n con/itute an 
effective consum] protection because an 
employ] may reject any job applicant :o 
refuses a cr$it *eck4  7#i7 ,"s negative
 in=mation on a report may /em f        
uncontrollable circum/ances1 or         
significant life ev5ts 9 a consum]'s    
life1 su* z a m$ical crisis or a        
divorce4 ,demos f\nd t poor cr$it is    
associat$ ) h\sehold unemploym5t1 lack (
 heal? cov]age1 & m$ical debt1 :i* are  
factors t reflect economic conditions 9 
! c\ntry & p]sonal mis=tune t h little  
relation%ip ) h[ well a job applicant   
w\ld p]=m at "w4  7#aj7 ,9 ,octob]      
#bjaa1 ,,fico not$ t f #bjjh to #bjji   
approximately #ej million p exp]i5c$ a  
#bj-po9t drop 9 _! cr$it scores & ab\t  
#ba million saw _! scores decl9e by m   

?an #ej po9ts4 ,:ile ! ,great ,recession
 r$uc$ _m consum]s' cr$it scores due to 
=eclosures & o!r f9ancial h>d%ips1 !    
f9ancial crisis _h a p>ticul>ly h>%     
impact on ,african ,am]icans & ,lat9os1 
z racial & e?nic m9orities & communities
 ( color 7 frequ5tly t>get$ by pr$atory 
mortgage l5d]s :o /e]$ borr[]s into     
high-co/ subprime loans1 ev5 :5 ^!      
borr[]s w\ld h qualifi$ = less co/ly    
prime cr$it4  7#aa7 ,a ,may #bjjf       
,brook+s ,in/itution report titl$ ,cr$it
 ,scores1 ,reports1 & ,gett+ ,ahead 9   
,am]ica f\nd t c\nties ) a relatively   
high] proportion ( racial & e?nic       
m9orities 9 ! ,unit$ ,/ates t5d$ to h   
l[] cr$it scores comp>$ ) c\nties t _h a
 l[] conc5tration ( communities ( color4
  7#ab7 ,/udies h consi/5tly f\nd t     
,african ,am]ican & ,lat9o h\seholds    
t5d1 on av]age1 to h l[] cr$it scores   
?an ,:ite h\seholds4 ,! gr[+ use ( cr$it
 *ecks1 !re=e1 may disproportionately   
scre5 o!rwise qualifi$ racial & e?nic   
m9orities out ( jobs1 lead+ to          

discrim9atory hir+ practices1 & fur!r   
exac]bat+ ! tr5d :]e unemploym5t =      
,african ,am]ican & ,lat9o communities  
is elevat$ well above ! rate ( ,:ites4  
7#ac7 ,a #bjab ,demos survey f\nd t #fe 
p]c5t ( ,:ite respond5ts report$ hav+   
good or excell5t cr$it scores :ile ov]  
half ( ,african ,am]ican h\seholds      
report$ only hav+ fair or bad cr$it4    
#c4 ,bans ! use ( cr$it in=mation = mo/ 
employm5t decisions  7a7 ,9 g5]al       
,section #fjd ( ! ,fair ,cr$it ,report+ 
,act 7#ae ,u4,s4,c4 #afha;b7 is am5d$-- 
7#a7 9 subsection 7a77#c77;,b71 by      
ins]t+ 1 subject to ! requirem5ts (     
subsection 7b7 aft] purposes2 &  7#b7 9 
subsection 7b7-- 7,a7 9 p>agraph 7#a7-- 
7i7 by am5d+ ! p>agraph head+ to read z 
foll[s3 ,use ( consum] reports =        
employm5t purposes2  7ii7 9 subp>agraph 
7,a71 by r$esignat+ clauses 7i7 & 7ii7 z
 subclauses 7,i7 & 7,,ii71 respectively 
7& con=m+ ! m>g9s accord+ly72  7iii7 by 
r$esignat+ subp>agraphs 7,a7 & 7,b7 z   
clauses 7i7 & 7ii71 respectively 7&     

con=m+ ! m>g9s accord+ly72  7iv7 by     
/rik+ ! p]iod at ! end ( clause 7ii7 7z 
s r$esignat$7 & ins]t+ 2 &2  7v7 by     
/rik+ ag5cy may furni% & ins]t+  ag5cy--
 7,a7 may furni%  2 &  7vi7 by add+ at !
 end ! foll[+ new subp>agraph3  7,b7    
except z provid$ 9 p>agraph 7#e71 may n 
furni% a consum] report ) respect to any
 consum] 9 :i* any in=mation conta9$ 9 !
 report be>s on ! consum]'s             
cr$itwor?9ess1 cr$it /&+1 or cr$it      
capacity4  2 &  7,b7 by add+ at ! end ! 
foll[+ new p>agraphs3  7#e7 ,requirem5ts
 = consum] reports be>+ on ! consum]'s  
cr$itwor?9ess1 cr$it /&+1 or cr$it      
capacity  7,a7 ,9 g5]al ,a p]son may use
 a consum] report ) respect to any      
consum] 9 :i* any in=mation conta9$ 9 ! 
report be>s on ! consum]'s              
cr$itwor?9ess1 cr$it /&+1 or cr$it      
capacity only if--  7i7 ei!r-- 7,i7 !   
p]son is requir$ to obta9 ! report by a 
,f$]al1 ,/ate1 or local law2 or  7,,ii7 
! in=mation conta9$ 9 ! report is be+   
us$ ) respect to a national security    

inve/igation 7z def9$ 9 p>agraph        
7#d77;,d772  7ii7 none ( ! co/ associat$
 ) obta9+ ! consum] report w be pass$ on
 to ! consum] to :om ! report relates2 &
  7iii7 ! in=mation conta9$ 9 ! consum] 
report w n be disclos$ to any o!r p]son 
o!r ?an--  7,i7 9 an aggregate =mat t   
protects a consum]'s p]sonally          
id5tifiable in=mation2 or  7,,ii7 z may 
be necess>y to comply ) any applicable  
,f$]al1 ,/ate1 or local equal employm5t 
opportunity law or regulation4  7,b7    
,disclosures ,a p]son :o procures1 or   
causes to be procur$1 a consum] report  
describ$ 9 subp>agraph 7,a7 = employm5t 
purposes %all1 9 ! disclosure made      
pursuant to p>agraph 7#b71 include--    
7i7 an explanation t a consum] report is
 be+ obta9$ = employm5t purposes2  7ii7 
! reasons = obta9+ su* a report2 &      
7iii7 ! citation to ! applicable ,f$]al1
 ,/ate1 or local law or regulation      
describ$ 9 subp>agraph 7,a77i77,i74     
7,c7 ,adv]se actions ,9 us+ a consum]   
report describ$ 9 subp>agraph 7,a7 =    

employm5t purposes & be=e tak+ an adv]se
 action bas$ 9 :ole or 9 "p on ! report1
 ! p]son int5d+ to take su* adv]se      
action %all1 9 addition to ! in=mation  
describ$ 9 p>agraph 7#c71 provide to !  
consum] to :om ! report relates--  7i7 !
 "n1 address1 & telephone numb] ( !     
consum] report+ ag5cy t furni%$ ! report
 7includ+1 = a consum] report+ ag5cy t  
compiles & ma9ta9s files on consum]s on 
a nationwide basis1 a toll-free         
telephone numb] e/abli%$ by su* ag5cy72 
7ii7 ! date on :i* ! report 0 furni%$2 &
  7iii7 ! specific factors f ! report ^u
 :i* ! adv]se action 7z def9$ 9 section 
#fjc7k77#a77;,b77ii77 0 bas$4  7,d7     
,national security inve/igations ,!     
requirem5ts ( p>agraph 7#d7 %all apply  
to a consum] report describ$ "u         
subp>agraph 7,a74  7,e7                 
,non-circumv5tion ,) respect to a       
consum] report 9 :i* any in=mation      
conta9$ 9 ! report be>s on ! consum]'s  
cr$itwor?9ess1 cr$it /&+1 or cr$it      
capacity1 if a p]son is prohibit$ f us+ 

! consum] report pursuant to subp>agraph
 7,a71 su* p]son may n1 directly or     
indirectly1 ei!r orally or 9 writ+1     
require1 reque/1 sugge/1 or cause any   
employee or prospective employee to     
submit su* in=mation to ! p]son z a     
condition ( employm5t4  7,f7 ,non-waiv] 
,a consum] may n waive ! requirem5ts (  
?is p>agraph ) respect to a consum]     
report4  7#f7 ,rule ( con/ruction ,no?+ 
9 ?is subsection %all be con/ru$ to     
require a consum] report+ ag5cy to      
prev5t a ,f$]al1 ,/ate1 or local law    
en=cem5t ag5cy f access+ in=mation 9 a  
consum] report to :i* ! law en=cem5t    
ag5cy c\ld o!rwise obta9 access4  4  7b7
 ,te*nical am5dm5t ,! ,fair ,cr$it      
,report+ ,act 7#ae ,u4,s4,c4 #afha et   
seq47 is am5d$ by /rik+ section         
#fjd7;b77#d77;,e77i7 ea* place su* t]m  
appe>s & ins]t+ section                 
#fjd7;b77#d77;,d77i74  7c7 ,rulemak+ ,n 
lat] ?an ! end ( ! #b-ye> p]iod beg9n+  
on ! date ( ! enactm5t ( ?is ,act1 !    
,bureau ( ,consum] ,f9ancial ,protection

 %all issue f9al rules to implem5t !    
am5dm5ts made by ?is ,act4  7d7         
,effective date ,! am5dm5ts made by ?is 
section %all take effect #b ye>s aft] ! 
date ( ! enactm5t ( ?is ,act4