,,ib ,union ,calendar ,no4 #bhg #aafth ,,congress #ast ,session ,h4 ,r4 #cfbb ,report ,no4 #aaf-cfb ,,in ,,the ,,house ,,of ,,representatives ,july #e1 #bjai ,ms4 ,tlaib introduced the following bill2 which was referred to the ,committee on ,financial ,services ,december #bc1 #bjai ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed ,strike out all after the enacting clause and insert the part printed in italic ,for text of introduced bill1 see copy of bill as introduced on ,july #e1 #bjai ,a ,,bill ,to amend the ,fair ,credit ,reporting act to restore the impaired credit of victims of predatory activities and unfair consumer reporting practices1 to expand access to tools to protect vulnerable consumers from identity theft1 fraud1 or a related crime1 and protect victims from further harm1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,restoring ,unfairly ,impaired ,credit and ,protecting ,consumers ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,findings4 ,sec4 #c4 ,effective date4 ,sec4 #d4 ,general ,bureau rulemaking4 ,title ,i--,restoring the impaired credit of victims of predatory activities and unfair consumer reporting practices ,sec4 #aja4 ,shortens the time period that most adverse credit information stays on consumer reports4 ,sec4 #ajb4 ,mandates the expedited removal of fully paid or settled debt from consumer reports4 ,sec4 #ajc4 ,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 #ajd4 ,provides credit restoration for victims of predatory mortgage lending and servicing4 ,sec4 #aje4 ,provides credit relief for private education loans borrowers who were defrauded or mislead by proprietary education institution or career education programs4 ,sec4 #ajf4 ,establishes right for victims of financial abuse to have adverse information associated with an abuser's fraudulent activity removed from their consumer reports4 ,sec4 #ajg4 ,prohibits treatment of credit restoration or rehabilitation as adverse information4 ,title ,,ii--,expanding access to tools to protect vulnerable consumers from identity theft1 fraud1 or a related crime1 and protect victims from further harm ,sec4 #bja4 ,identity theft report definition4 ,sec4 #bjb4 ,amendment to protection for files and credit records of protected consumers4 ,sec4 #bjc4 ,enhances fraud alert protections4 ,sec4 #bjd4 ,amendment to security freezes for consumer reports4 ,sec4 #bje4 ,clarification of information to be included with agency disclosures4 ,sec4 #bjf4 ,provides access to fraud records for victims4 ,sec4 #bjg4 ,required ,bureau to set procedures for reporting identity theft1 fraud1 and other related crime4 ,sec4 #bjh4 ,establishes the right to free credit monitoring and identity theft protection services for certain consumers4 ,sec4 #bji4 ,ensures removal of inquiries resulting from identity theft1 fraud1 or other related crime from consumer reports4 ,title ,,iii--,miscellaneous ,sec4 #cja4 ,definitions4 ,sec4 #cjb4 ,technical correction related to risk-based pricing notices4 ,sec4 #cjc4 ,,fcra findings and purpose2 voids certain contracts not in the public interest4 #b4 ,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 ,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#c7 ,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#d7 ,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#e7 ,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#f7 ,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#g7 ,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 ,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 #c4 ,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 #d4 ,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 ,i ,restoring the impaired credit of victims of predatory activities and unfair consumer reporting practices #aja4 ,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#i7 ,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#aj7 ,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#aa7 ,records of convictions of crimes which antedate the report by more than #g years4 7#ab7 ,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 #ajb4 ,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 #aja7;a77#a71 is further amended by adding at the end the following new paragraph3 7#ac7 ,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 #ajc4 ,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 #ajb1 is further amended by adding at the end the following new paragraph3 7#ad7 ,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 certain 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#ae7 ,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 #cfe calendar days4 4 7c7 ,prohibition on reporting medically necessary procedures ,section #fje7;a7 of such ,act is further amended by adding at the end the following new paragraph3 7#af7 ,any information related to a debt arising from a medically necessary procedure4 4 7d7 ,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 #ajd4 ,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 #aje4 ,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 #ajd1 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 consumer 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 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 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 of the circumstances under which such consumer 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 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 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 #ajd7 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 #ajf4 ,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 #aje1 is further amended by inserting after section #fje;,d the following new section3 #fje;,e4 ,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;,d the following new item3 #fje;,e4 ,financial abuse prevention4 4 #ajg4 ,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 or #fje;,e2 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 or #fje;,e4 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 or #fje;,e2 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 or #fje;,e4 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 or #fje;,e1 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 or #fje;,e 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 ,,ii ,expanding access to tools to protect vulnerable consumers from identity theft1 fraud1 or a related crime1 and protect victims from further harm #bja4 ,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 #bjb4 ,amendment to protection for files and credit records of protected consumers 7a7 ,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 record created pursuant to section #fje;,a7j7 after stored4 7b7 ,amendment to protection for files and credit records ,section #fje;,a7j7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c-#a7;j77 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 in subparagraph 7,b77ii71 by striking an incapacitated person or a protected person and inserting a person2 and 7,b7 by amending subparagraph 7,e7 to read as follows3 7,e7 ,the term security freeze-- 7i7 has the meaning given in subsection 7i77#a77;,c72 and 7ii7 with respect to a protected consumer for whom the consumer reporting agency does not have a file1 means a record that is subject to a security freeze that a consumer reporting agency is prohibited from disclosing to any person requesting the consumer report for the purpose of opening a new account involving the extension of credit4 2 and 7#b7 in paragraph 7#d77;,d71 by striking a protected consumer or a protected consumer's representative under subparagraph 7,a77i7 and inserting a protected consumer described under subparagraph 7,a77ii7 or a protected consumer's representative4 #bjc4 ,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,a71 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 inserting3 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 include on the webpage required under subsection 7i7 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 security 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 security 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 security 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 security 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 security freezes after request alerts2 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 appears2 and 7#i7 in subsection 7i77#d7-- 7,a7 by striking subparagraphs 7,e7 and 7,i72 and 7,b7 by redesignating subparagraphs 7,f71 7,g71 7,h71 and 7,j7 as subparagraphs 7,e71 7,f71 7,g71 and 7,h71 respectively4 #bjd4 ,amendment to security freezes for consumer reports 7a7 ,in general ,section #fje;,a7i7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c-#a7;i77 is amended-- 7#a7 by amending the subsection heading to read as follows3 ,security freezes for consumer reports2 7#b7 in paragraph 7#c77;,e71 by striking ,upon receiving and all that follows through subparagraph 7,c71 and inserting ,upon receiving a direct request from a consumer for a temporary removal of a security freeze1 a consumer reporting agency shall2 and 7#c7 by adding at the end the following3 7#g7 ,relation to ,state law ,this subsection does not modify or supersede the laws of any ,state relating to security 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 to the consumer than the protection provided under this subsection as determined by the ,bureau4 4 7b7 ,amendment to webpage requirements ,section #fje;,a7i77#f77;,a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c-#a7;i77#f77;,a77 is amended-- 7#a7 in clause 7ii71 by striking initial fraud alert and inserting #a-year fraud alert2 7#b7 in clause 7iii71 by striking extended fraud alert and inserting #g-year fraud alert2 and 7#c7 in clause 7iv71 by striking fraud4 7c7 ,amendment to exceptions for certain persons ,section #fje;,a7i77#d77;,a7 of the ,consumer ,credit ,protection ,act 7#ae ,u4,s4,c4 #afha;c-#a7;i77#d77;,a77 is amended to read as follows3 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 4 7e7 ,effective date ,the amendments made by subsection 7a7 shall take effect on the date of the enactment of this ,act4 #bje4 ,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 #bjf4 ,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#c77;,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 #bjg4 ,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 #bjh4 ,establishes the right to free credit monitoring and identity theft protection services for certain consumers 7a7 ,enforcement of credit monitoring for servicemembers 7#a7 ,in general ,subsection 7k7 of section #fje;,a 7#ae ,u4,s4,c4 #afha;c-#a7;a77 is amended by striking paragraph 7#d74 7#b7 ,effective date ,this subsection and the amendments made by this subsection shall take effect on the date of the enactment of this ,act4 7b7 ,free credit monitoring and identity theft protection services for certain consumers ,subsection 7k7 of section #fje;,a 7#ae ,u4,s4,c4 #afha;c-#a71 is amended to read as follows3 7k7 ,credit monitoring and identity theft protection services 7#a7 ,in general ,upon the direct request 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 consumer or a member of the ,national ,guard 7as defined in section #aja7;c7 of title #aj1 ,united ,states ,code72 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 modify or supersede 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 to the consumer than the protection provided under this subsection as determined by the ,bureau4 4 #bji4 ,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 #ajc1 is further amended by adding at the end the following3 7#ag7 ,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 ,,iii ,miscellaneous #cja4 ,definitions ,section #fjc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a7 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 #cjb4 ,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 #cjc4 ,,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 #ajg1 is further amended-- 7#a7 by adding at the end the following new section3 #fca4 ,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 #fca4 ,voiding of certain contracts not in the public interest4 4 ,december #bc1 #bjai ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed