For other versions of this document, see http://wikileaks.org/wiki/CRS-RL32121 ------------------------------------------------------------------------------ Order Code RL32121 CRS Report for Congress Received through the CRS Web Fair Credit Reporting Act: A Side-By-Side Comparison of House, Senate and Conference Versions Updated December 11, 2003 Angie A. Welborn Legislative Attorney American Law Division Loretta Nott Analyst in Economics Government and Finance Division Congressional Research Service ~ The Library of Congress Fair Credit Reporting Act: A Side-By-Side Comparison of House, Senate and Conference Versions Summary As the preemption provisions of the Fair Credit Reporting Act (FCRA) were set to expire at the end of 2003, both the House and Senate revisited the entire Act, holding a series of hearings on divergent issues related to consumer credit, the credit reporting system, and financial privacy. Legislation emerged from these hearings. H.R. 2622, the Fair and Accurate Credit Transactions Act of 2003, was introduced by Representative Bachus on June 26, 2003, and was passed by the House on September 10, 2003. The bill included a number of provisions aimed at preventing identity theft, ensuring the accuracy of consumer credit information, and protecting consumer privacy with respect to certain information. It would have also made the FCRA's current preemption provisions permanent. S. 1753, the National Consumer Credit Reporting System Improvement Act of 2003, was reported as an original measure by the Senate Committee on Banking, Housing and Urban Affairs on October 17, 2003. The bill included a number of provisions similar to those in H.R. 2622 and would have also made the FCRA's preemption provisions permanent. The Senate considered S. 1753 on November 4, 2003, approving several amendments to the original version as reported by the Senate Committee on Banking, Housing and Urban Affairs, including an amendment in the nature of a substitute offered by Senator Shelby. On November 5, 2003, the Senate incorporated S. 1753, as previously amended, in H.R. 2622 as an amendment. The Senate passed H.R. 2622, as amended, in lieu of passing S. 1753. Upon passage of H.R. 2622, as amended, the Senate appointed conferees. On November 6, 2003, the House appointed conferees. A conference agreement was reached and the House approved the conference report on November 21, 2003, with the Senate approving it the following day. The President signed the legislation on December 4, 2003, and it became P.L. 108-159. This report provides an overview of legislative proceedings in each chamber and a side-by-side comparison of the major provisions of the House and Senate bills, as well as the conference report, which became P.L. 108-159. This report will not be updated. Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Preemption of State Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Identity Theft Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Resolution of Consumer Disputes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Accuracy of Consumer Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Use of and Consumer Access to Credit Information . . . . . . . . . . . . . . . . . . 15 Use and Sharing of Medical Information . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Fair Credit Reporting Act: A Side-By-Side Comparison of House, Senate and Conference Versions Introduction As the preemption provisions of the Fair Credit Reporting Act (FCRA) were set to expire at the end of 2003,1 both the House and Senate revisited the entire Act, holding a series of hearings on divergent issues related to consumer credit, the credit reporting system, and financial privacy.2 Legislation emerged from these hearings. H.R. 2622, the Fair and Accurate Credit Transactions Act of 2003, was introduced by Representative Bachus on June 26, 2003. The House Financial Services Subcommittee on Financial Institutions and Consumer Credit held a markup on July 16, 2003, and the full committee completed its markup of the bill on July 24, 2003. H.R. 2622 was reported, as amended, by the Committee on September 4, 2003.3 The House debated and passed the legislation on September 10, 2003.4 As passed, H.R. 2622 would have amended the Fair Credit Reporting Act to make permanent the current expiring preemptions, thus preventing states from enacting and enforcing legislation related to certain issues addressed in the FCRA.5 The bill also included a number of provisions aimed at preventing identity theft, ensuring the accuracy of consumer credit information, and protecting consumer privacy with respect to certain information. On October 17, 2003, S. 1753, the National Consumer Credit Reporting System Improvement Act of 2003, was reported as an original measure by the Senate Committee on Banking, Housing and Urban Affairs.6 As reported, S. 1753 included a number of provisions similar to those in H.R. 2622, including a provision to make 1 See 15 U.S.C. 1681t(d)(2). 2 For more information on these and other issues addressed in the legislation, see the following: CRS Report RS21576, Fair Credit Reporting Act: Frequently Asked Questions; CRS Report RL31666, Fair Credit Reporting Act: Rights and Responsibilities; CRS Report RL31758, Financial Privacy: The Economics of Opt-In vs. Opt-Out; CRS Report RL31847, The Role of Information in Lending: The Cost of Privacy Restrictions; CRS Report RL32008, A Consumer's Access to a Free Credit Report: A Legal and Economic Analysis; and CRS Report RL31919, Remedies Available to Victims of Identity Theft. 3 H.Rept. 108-263. 4 Roll Call No. 499, 149 Cong. Rec. H8166 - H8167 (daily ed. Sept. 10, 2003). 5 For more information on the FCRA's preemption provisions, see CRS Report RS21449: Fair Credit Reporting Act: Preemption of State Law. 6 S.Rept. 108-166. CRS-2 permanent the FCRA's current expiring preemptions. The Senate considered S. 1753 on November 4, 2003, approving several amendments to the original version as reported by the Senate Committee on Banking, Housing and Urban Affairs, including an amendment in the nature of a substitute offered by Senator Shelby.7 On November 5, 2003, the Senate incorporated S. 1753, as previously amended, in H.R. 2622 as an amendment. The Senate passed H.R. 2622, as amended, in lieu of passing S. 1753.8 Upon passage of H.R. 2622, as amended, the Senate appointed conferees The House appointed conferees on November 6, 2003. On November 21, 2003, a conference agreement was reached.9 The House approved the conference report the same day, with the Senate approving the report on November 22, 2003. The President signed the legislation on December 4, 2003, and it became P.L. 108-159. The following table provides a side-by-side comparison of the major provisions of H.R. 2622, as passed by the House, H.R. 2622, as passed by the Senate, and the conference report, which became P.L. 108-159. 7 See 149 Cong. Rec. S13848 - S13891 (daily ed. Nov. 4, 2003). 8 Record Vote Number 437, 149 Cong. Rec. S13982 (daily ed. Nov. 5, 2003). 9 H.Rept. 108-396. CRS-3 Preemption of State Law H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Expiration of current FCRA Makes the current expiring preemptions Makes the current expiring preemptions Makes the current expiring preemptions preemptions permanent. (Sec. 101) permanent. (Sec. 611) permanent. (Sec. 711) Preemption of state identity Amends the FCRA's preemption No similar provision. Amends the FCRA's preemption theft laws provisions to preempt state laws related provisions to preempt state laws related to specific identity theft provisions to the truncation of credit and debit card included in the FCRA, as amended by account numbers; fraud alerts; blocking the legislation. (Sec. 201) of information in credit reports; truncation of social security numbers on credit reports; free annual credit reports; and other issues related to identity theft addressed in the FCRA, as amended. (Sec. 711) Identity Theft Provisions H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Changes of address Requires the federal banking agencies Requires the federal banking agencies, Similar to the Senate provision, except and the National Credit Union the National Credit Union requires that certain procedures are Administration to jointly prescribe Administration, and the Federal Trade followed when the issuer receives a regulations for credit card and debit Commission to prescribe regulations request for an additional or replacement card issuers to ensure that certain applicable to card issuers to ensure that card within a short period of time procedures are followed to verify certain procedures are followed when (during at least the first 30 days) changes of address when requests for the issuer receives a request for an following notification of a change of additional cards are received. (Sec. 201) additional card not later than 30 days address for the same account. (Sec. after the issuer has received notification 114) of a change of address for the same account. (Sec. 114) CRS-4 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Fraud alerts Allows consumers, or persons acting on Similar to H.R. 2622, as passed by the Similar to the Senate provision, except behalf of or as a personal representative House, except that it requires the allows persons acting on behalf of or as of the consumer, to have one-call fraud consumer to personally make the a personal representative of the alerts placed in their credit files if they request for the fraud alert, and does not consumer to place fraud alerts. Also have been, or expect that they will include a provision requiring the requires that fraud alerts be provided become, a victim of identity theft. consumer reporting agency to along with any credit score generated in Requires a consumer reporting agency automatically exclude the consumer using that file. Consumer reporting to: 1) maintain a fraud alert in the file from prescreened lists after an initial agencies are required to exclude for at least 90 days, 2) disclose to the fraud alert is requested. Consumer consumers from prescreened lists for consumer that the consumer may reporting agencies, however, are five years after the date of request for request a free copy of the file, 3) required to exclude consumers from an extended alert and two years for exclude the consumer from any prescreened lists for seven years after active duty alerts. (Sec. 112) prescreeened lists for two years after the date of request for an extended alert the date the fraud alert is requested, and and 12 months for active duty alerts. 4) refer the information regarding the (Sec. 112) fraud alert to each of the other nationwide consumer reporting agencies. Allows consumers to request extended alerts that stay in their file up to seven years. Allows an active duty military consumer to request an active duty alert to stay in their file for a period of no less than 12 months and excludes the consumer from prescreened lists for 2 years following the request. (Sec. 202) CRS-5 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Truncation of credit card Prohibits the expiration date or more Similar to H.R. 2622, as passed by the Similar to both the House and Senate numbers than the last 5 digits of a credit card House. (Sec. 113) provisions. (Sec. 113) number from appearing on a cardholder's electronically printed receipt. (Sec. 203) Summary of rights of identity Requires the Federal Trade Similar to H.R. 2622, as passed by the Similar to both the House and Senate theft victims Commission, in consultation with the House. (Sec. 151) provisions. (Sec. 151) federal banking agencies and the National Credit Union Administration, to prepare a model summary of the rights of consumers with respect to the procedures for remedying the effects of fraud or identity theft. Such summary must be provided to any consumer who contacts the consumer reporting agency and expresses a belief that he/she is a victim of identity theft. (Sec. 204) Information available to No similar provision. Requires a business entity, upon request Similar to the Senate provision. (Sec. victims and subject to verification of the 151) identity of the victim, provide copies of application and business transaction records evidencing any transaction alleged to be a result of identity theft to the victim, any federal, state or local governing law enforcement agency or officer specified by the victim, or to any law enforcement agency investigating the identity theft and authorized by the victim to take receipt of the records in question. (Sec. 151) CRS-6 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Blocking of information Requires consumer reporting agencies Requires consumer reporting agencies Similar to both the House and Senate resulting from identity theft to block the reporting of any to block the reporting of any provisions, except the information must information in the file of a consumer, information in the file of a consumer, be blocked not later than 4 business that the consumer identifies as that the consumer identifies as days after the receipt of the following information that resulted from an information that resulted from an information: appropriate proof of the alleged identity theft, not later than 5 alleged identity theft, not later than 3 identity of the consumer, a copy of an business days after the receipt of the business days after the receipt of the identity theft report, the identification following information: proof of identity following information: appropriate of such information by the consumer, of the consumer, a police report, proof of the identity of the consumer, a and a statement by the consumer that identification of information in copy of the identity theft report, and the the information is not information question, and confirmation that the identification of such information by relating to any transaction by the information is not information relating the consumer. consumer. (Sec. 152) to any transaction by the consumer. The consumer reporting agency must The consumer reporting agency must also notify the furnisher of the also notify the furnisher of the information in question that it may be information in question that it may be the result of identity theft. The the result of identity theft. The consumer reporting agency has the consumer reporting agency has the authority to rescind or decline to block authority to rescind or decline to block under certain circumstances. (Sec. 152) under certain circumstances. (Sec. 205) CRS-7 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Procedures for identifying Requires the federal banking agencies Requires the federal banking agencies, Requires the federal banking agencies, possible instances of identity and the National Credit Union the National Credit Union the National Credit Union theft Administration, in consultation with the Administration, and the Federal Trade Administration, and the Federal Trade Federal Trade Commission, to jointly Commission to establish and maintain Commission to jointly establish and establish and maintain guidelines for guidelines for use by financial maintain guidelines for use by each use by insured depository institutions in institutions, creditors and other users of financial institution and each creditor identifying patterns, practices, and consumer reports regarding identity regarding identity theft; prescribe specific forms of activity that indicate theft, including regulations requiring regulations requiring each financial the possible existence of identity theft financial institutions, creditors, and institution and each creditor to establish with respect to accounts, and update other users of consumer reports to reasonable policies and procedures for such guidelines as often as necessary. notify the Federal Trade Commission in implementing the guidelines; and Also requires these entities to prescribe any case in which there has been, or is prescribe regulations regarding changes regulations requiring insured depository reasonably believed to have been of address and requests for new cards institutions to establish reasonable unauthorized access to computerized or (discussed supra). Requires the policies and procedures for physical records which compromises guidelines to identify patterns, practices implementing the guidelines to identify the security, confidentiality, or integrity and specific forms of activity that possible risks to customer accounts or of consumer information maintained by indicate the possible existence of to the safety and soundness of the entity. Also, requires these agencies identity theft. (Sec. 114) institutions. (Sec. 206) to prescribe regulations requiring financial institutions, creditors and other users of consumer reports to establish reasonable policies and procedures for implementing the guidelines established to identify possible risks to account holders or to the safety and soundness of the institution or customers. (Sec. 114) Treasury study on the use of Requires the Secretary of the Treasury No similar provision. Similar to the House provision. (Sec. technology to combat identity to conduct a study on the use of 157) theft biometrics and other similar technologies to reduce the incidence and cost of identity theft. (Sec. 207) CRS-8 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Statute of Limitations No similar provision. Extends the statute of limitations under Similar to the Senate provision. (Sec. the FCRA to allow suit to be brought 156) not later than the earlier of 2 years after the date of discovery by the plaintiff of the violation that is the basis for such liability, or 5 years after the date on which the violation that is the basis for such liability occurs. (Sec. 156) Truncation of Social Security No similar provision. Allows a consumer to request that the Similar to the Senate provision. (Sec. Numbers first five digits of his or her social 115) security number not be included on a credit report provided to the consumer by a consumer reporting agency. (Sec. 116) CRS-9 Resolution of Consumer Disputes H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Coordination of consumer Requires consumer reporting Similar to H.R. 2622, as passed by Similar to both the House and Senate complaint investigations agencies to develop and maintain the House. (Sec. 153) provisions. (Sec. 153) procedures for the referral of any consumer complaint alleging identity theft, or requesting a block or fraud alert. (Sec. 301) Notice of dispute through Requires resellers, upon notification No similar provision. Similar to the House provision, but reseller of a consumer, to determine whether also requires consumer reporting disputed information is incomplete agencies to notify the reseller in lieu or inaccurate as a result of the of the consumer upon the completion reseller's act or omission, and if the of a reinvestigation and the reseller information is incomplete or shall immediately reconvey such inaccurate as a result of the reseller's notice to the consumer. (Sec. 316) act or omission, correct the information or delete it. If the item of information is not incomplete or inaccurate as a result of the reseller's act or omission, the reseller must convey notice of the dispute to each consumer reporting agency that provided the reseller with the information in question. (Sec. 302) Reasonable investigation Requires consumer reporting No similar provision. Same as the House provision. (Sec. required agencies to conduct a reasonable 317) reinvestigation of the disputed accuracy of any information in a consumer's file. (Sec. 303) CRS-10 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Fed and FTC study on the Requires the Board of Governors of No similar provision. Similar to the House provision. (Sec. prompt investigation of the Federal Reserve System and the 313) disputed consumer Federal Trade Commission to information conduct a study on the extent to which, and the manner in which, consumer reporting agencies and furnishers of information are complying with the procedures, time lines, and requirements under the FCRA for the prompt investigation of the disputed accuracy of any consumer information. (Sec. 305) Accuracy of Consumer Records H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Reconciling addresses Requires consumer reporting agencies Similar to H.R. 2622, as passed by the Similar to both the House and Senate to notify requesters of any substantial House. (Sec. 316) provisions. (Sec. 315) discrepancies in the address the agency has on file and the address the requester was given. (Sec. 401) CRS-11 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Prevention of repollution of Prohibits furnishers of information from Requires furnishers of information to Requires furnishers of information to consumer reports furnishing information identified by the have in place reasonable procedures to have in place reasonable procedures to consumer as resulting from identity respond to any notification from a respond to any notification from a theft, unless the furnisher subsequently consumer reporting agency regarding consumer reporting agency regarding knows or is informed by the consumer the blocking of information resulting the blocking of information resulting that the information is correct. (Sec. from identity theft, to prevent such from identity theft, to prevent such 402) information from being refurnished. information from being refurnished. Also requires furnishers to conduct an Also prohibits furnishers of information investigation when the furnisher from furnishing information identified receives, directly from the consumer, an by the consumer as resulting from identity theft report or a properly identity theft, unless the furnisher completed copy of a standardized subsequently knows or is informed by affidavit of identity theft developed by the consumer that the information is the Federal Trade Commission. (Sec. correct. (Sec. 154) 154) Disclosure of contact Requires the disclosure of the addresses No similar provision. No similar provision. information and telephone numbers of sources of information in consumer credit reports. (Sec. 404) FTC study of issues relating No similar provision. Requires the Federal Trade Same as the Senate provision. (Sec. to the Fair Credit Reporting Commission to conduct a study on 318) Act ways to improve the operation of the FCRA. Provides that the study should focus on improving the accuracy of information, requiring notification to consumers when negative information is added, and evaluating the types of information reported to consumer reporting agencies. (Sec. 317) CRS-12 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) FTC study of the accuracy of Requires the Federal Trade No similar provision. Same as the House provision. (Sec. consumer reports Commission to conduct an ongoing 319) study of the accuracy and completeness of information contained in consumer reports, and methods for improving the accuracy and completeness of such information. (Sec. 405) Risk-based pricing notice No similar provision. Requires users who grant, extend, or Similar to the Senate provision, but also otherwise provide credit on material includes that the notice may be terms that are materially less favorable provided at the time of application for, than the most favorable terms available or a grant, extension, or other provision to a substantial proportion of consumers of, credit or the time of communication from or through that user, to provide a of an approval, except as provided by special notice to the consumer. regulation. (Sec. 311) Provides that the notice must include a statement informing the consumer that the terms offered to the consumer were set based on information from a consumer report; identification of the consumer reporting agency that furnished the report; a statement informing the consumer that the consumer may obtain a copy of a consumer report from that agency free of charge; and the contact information specified by the agency for obtaining such reports. (Sec. 311) CRS-13 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Procedures to enhance the Requires furnishers of information to Requires the federal banking agencies, Combines provisions similar to both the accuracy and integrity of maintain reasonable procedures the National Credit Union House and the Senate. Accuracy information furnished to designed to ensure that the information Administration, and the Federal Trade guidelines are similar to the Senate consumer reporting agencies furnished is accurate. Allows Commission to establish and maintain provision. Ability of consumers to consumers to dispute the accuracy of guidelines for furnishers of information dispute information directly with information directly with the furnisher. regarding the accuracy and furnishers, and the duties of furnishers Requires furnishers to investigate the completeness of the information they after receiving notice of dispute are disputed information and report results provide, and prescribe regulations similar to the House provision, except to the consumer within a specified requiring furnishers to establish the federal banking agencies, the period of time. If the information is reasonable policies and procedures for National Credit Union Administration found to be inaccurate, the furnisher implementing the guidelines. (Sec. 312) and the Federal Trade Commission must notify each consumer reporting must jointly prescribe regulations that agency where the information was identify the circumstances under which furnished and provide the correct a furnisher is required to reinvestigate a information. (Sec. 304) dispute. (Sec. 312) Addressing consumer No similar provision. Requires the Federal Trade Similar to the Senate provision. (Sec. complaints Commission to compile all complaints 313) that it receives regarding the completeness or accuracy of information in a disputed consumer report, and transmit each complaint to the consumer reporting agency involved. Requires consumer reporting agencies that receive the complaints to review each complaint to determine that all legal obligations have been met, report to the FTC regarding the determinations and actions taken by the consumer reporting agency with respect to the complaints, and maintain records regarding the disposition of each complaint. (Sec. 313) CRS-14 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Ongoing audits No similar provision. Requires the Board of Governors of the No similar provision. Federal Reserve System to conduct ongoing audits of the accuracy and completeness of the information contained in consumer reports. Requires the Board to independently verify the accuracy and completeness of information contained in consumer reports by evaluating the information and data provided by consumer reporting agencies. (Sec. 314) Disclosure of results of No similar provision. Requires consumer reporting agencies Similar to the Senate provision, but also reinvestigation to notify furnishers of information allows furnishers to permanently block when information they have provided the reporting of an item of information has been modified or deleted from the disputed by the consumer, based on the file of the consumer following a results of the reinvestigation. (Sec. 314) reinvestigation. Also requires furnishers to modify or delete from their records an item of any information disputed by a consumer that is found to be inaccurate or incomplete or cannot be verified after reinvestigation. (Sec. 315) CRS-15 Use of and Consumer Access to Credit Information H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Free annual credit reports Requires the free annual disclosure of Requires the free annual disclosure of Requires the free annual disclosure of consumer reports, by a consumer consumer reports by nationwide consumer reports by nationwide reporting agency that compiles and consumer reporting agencies only if the consumer reporting agencies upon maintains files on a nationwide or request is made by mail or through an request, but only if the request from the regional basis, upon request. (Sec. 501) Internet website using the centralized consumer is made using the centralized system and standardized form source established for such purpose by established for such requests pursuant the Federal Trade Commission. The to the legislation. (Sec. 211) centralized source must provide a toll free telephone number for consumers, the use of an Internet web site for making requests, and provide for requests by mail. (Sec. 211) Also requires the free annual disclosure of consumer reports by nationwide specialty consumer reporting agencies upon request pursuant to regulations prescribed by the Federal Trade Commission. A nationwide specialty consumer reporting agency is a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis relating to 1) medical records or payments; 2) residential or tenant history; 3) check writing history; 4) employment history; or 5) insurance claims. (Sec. 211) CRS-16 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Disclosure of credit scores Requires consumer reporting agencies, Requires the disclosure of credit score Similar to the House provision. (Sec. upon the request of a consumer for a information in connection with an 212) credit score, to provide the consumer application for an extension of credit with a statement indicating that the for a consumer purpose that is to be information and credit scoring model secured by a dwelling. Requires the may be different from the credit score disclosure of information similar to that used by the lender. Requires the required in the disclosure notice under consumer reporting agency to also H.R. 2622. (Sec. 212) provide the consumer with a notice, which shall include the following information: the consumer's current or most recent credit score, the range of possible credit scores under the model used, the key factors that adversely affected the consumer's credit score, the date the credit score was created, and the name of the person or entity that provided the credit score or credit file upon which the credit score was created. Allows for a reasonable fee to be charged for the disclosure of the credit score. (Sec. 502) Requires mortgage lenders to make additional disclosures regarding credit scores. (Sec. 502) CRS-17 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Disclosures regarding the Expands on the current notification Expands on the current notification Similar to the Senate provision, except right to opt-out of provisions under the FCRA to require provisions under the FCRA to require that duration of election is five years. prescreened lists persons who use consumer reports for persons who use consumer reports for (Sec. 213) prescreening purposes to notify prescreening purposes to provide to the consumers, in a simple and easy to consumer a statement including the understand format, of their right to opt address and toll-free telephone number out of prescreened lists. (Sec. 503) where they may request to be excluded from prescreened lists. The statement must be presented in such a format and in such type size and manner as established by the Federal Trade Commission, in consultation with the federal banking agencies and the National Credit Union Administration. The consumer's election to be excluded from such lists shall be effective for seven years. (Sec. 213) Disclosures to consumers Requires furnishers of information to No similar provision. Same as the House provision. (Sec. regarding negative notify consumers in writing when 217) information negative information is being reported. Allows the financial institution to submit additional negative information to a consumer reporting agency with respect to the same transaction, extension of credit, account, or consumer without providing additional notice to the consumer. (Sec. 504) CRS-18 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) FTC study on credit scores Requires the Federal Trade Requires the Federal Trade Similar to both the House and Senate Commission, in consultation with the Commission to conduct a similar study provisions, but also includes Department of Housing and Urban on the effects of credit scores and participation by the Board of Governors Development, to conduct a study of (1) credit-based insurance scores on the of the Federal Reserve System. (Sec. the effects of the use of credit and availability and affordability of 215) credit-based insurance scores on the financial products. (Sec. 215) availability and affordability of financial products/services, (2) the degree of causality between the factors considered by credit score systems and the quantifiable risks and actual losses experienced, (3) the extent to which credit and credit-based insurance scores result in disparate impact on a variety of social groups, and (4) the extent to which businesses use credit scoring systems, the factors considered by these systems, and the effects of variables not considered. (Sec. 505) GAO study on discrimination Requires the Comptroller General to No similar provision. No similar provision. and the credit system conduct a study of the credit system to determine the extent to which discrimination exists with regard to the availability and terms of credit. (Sec. 506) Fed study on restricting Requires the Board of Governors of the No similar provision. Similar to the House provision. (Sec. offers of credit or insurance Federal Reserve System to conduct a 213) study on the ability of consumers to avoid receiving written offers of credit/insurance not initiated by the consumer, and the potential impact on consumers of placing further restrictions on such offers. (Sec. 507) CRS-19 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Financial literacy Requires the Comptroller General to Establishes a financial literacy and Similar to the Senate provision, but also conduct a study on methods for education commission which shall take includes a provision for the Secretary of improving financial literacy among such actions as it deems necessary to the Treasury to develop, implement, consumers, and to assess the extent of streamline, improve, or augment the and conduct a pilot national public consumers' knowledge and awareness financial literacy and education service multimedia campaign to of credit reports, credit scores, and the programs, grants, and materials of the enhance the state of financial literacy dispute resolution process. (Sec. 508) federal government, including curricula and education in the United States. for all Americans. (Title V) (Title V) Disclosures regarding Requires credit card issuers to clearly No similar provision. No similar provision. increase in APR and conspicuously disclose to the consumer the ability of the issuer to increase any annual percentage rate (APR) applicable to a credit card account, or to remove or increase any introductory APR for reasons other than actions or omissions of the card holder that are directly related to such account. (Sec. 509) CRS-20 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Affiliate information sharing No similar provision. Amends the FCRA to add a new section Similar to the Senate provision, except addressing the sharing of information limits the effectiveness of the among affiliates for marketing consumer's election to five years and purposes. Provides that such adds new exemptions for persons using information may not be used to make a the information for marketing solicitation for marketing purposes, solicitation purposes. Also includes a unless it is clearly and conspicuously provision exempting the use of disclosed to the consumer that the information to send a solicitation to a information may be exchanged for such consumer, if such information was purposes, and the consumer is provided received prior to the date on which an opportunity and a simple method to persons are required to comply with prohibit the making of such regulations implementing the opt-out solicitations. Specifies that a requirement. (Sec. 214) consumer's request to opt out be effective permanently unless the consumer revokes the request. Allows for some exemptions, including persons using information for marketing solicitation purposes to consumers with whom persons have a pre-existing business relationship. (Sec. 214) Disposal of consumer report No similar provision. Requires the Federal Trade Similar to the Senate provision, except information and records Commission to promulgate regulations also requires the participation by and requiring any person that maintains or coordination with the federal banking otherwise possesses consumer agencies, National Credit Union information or any compilation of Administration and the Securities and consumer information derived from Exchange Commission. (Sec. 216) consumer reports for a business purpose to properly dispose of any such information or compilation. (Sec. 216) CRS-21 Use and Sharing of Medical Information H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Definition of medical No similar provision. Amends the definition of medical Similar to the Senate provision. (Sec. information information in the FCRA to read as 411) follows: "The term medical information means information or data, other than age or gender, whether oral or recorded, in any form or medium, created by or derived from a health care provider or the consumer, that relates to (1) the past, present, or future physical, mental, or behavioral health or condition of an individual; (2) the provision of health care to an individual; or (3) the payment for the provision of health care to an individual." (Sec. 411) CRS-22 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Protection of medical Prohibits consumer reporting agencies Prohibits consumer reporting agencies Same as the House provision. (Sec. information from issuing reports containing medical from issuing reports containing medical 411) information for employment purposes, information for employment purposes, or in connection with a credit or or in connection with a credit or insurance transaction, unless (1) if the insurance transaction, unless (1) if the report is furnished in connection with report is furnished in connection with an insurance transaction, the consumer an insurance transaction, the consumer affirmatively consents; (2) if the report affirmatively consents; (2) if the report is for employment purposes or in is for employment purposes or in connection with a credit transaction, the connection with a credit transaction, the information is relevant to the information is relevant to the employment or credit transaction, and employment or credit transaction, and the consumer provides specific written the consumer provides specific written consent; or (3) the information pertains consent; or (3) such information is solely to debts arising from the receipt restricted or reported using codes that of medical services, products, or do not identify, or provide information devices and such information is sufficient to infer, the specific provider restricted or reported using codes that or the nature of such services, products, do not identify, or provide information or devices; or the report is being sufficient to infer, the specific provider provided to an insurance company for a or the nature of such services, products, purpose relating to engaging in the or devices. (Sec. 701) business of insurance other than property and casualty insurance. (Sec. 411) Use of medical information Prohibits creditors from obtaining or Similar to H.R. 2622, as passed by Similar to the House and Senate by creditors using medical information about a the House. (Sec. 411) provisions. (Sec. 411) consumer when determining eligibility for credit. (Sec. 701) Exchange of medical Prohibits the exchange of medical Similar to H.R. 2622, as passed by Similar to the House and Senate information among information among affiliates. (Sec. the House. (Sec. 411) provisions. (Sec. 411) affiliates 701) CRS-23 H.R. 2622, as passed by the House H.R. 2622, as passed by the Senate Conference Report (P. L. 108-159) Confidentiality of medical Requires a person whose primary Same as H.R. 2622, as passed by the Same as both the House and Senate information in credit business is providing medical House. (Sec. 412) provisions. (Sec. 412) reports services, products, or devices and who furnishes information to a consumer reporting agency to notify the agency of his or her status as a medical information furnisher. Prohibits the inclusion of the name, address, and telephone number of any medical information furnisher in a credit report provided to a person other than the consumer, unless (1) such information is restricted or reported using codes that do not identify, or provide information sufficient to infer, the specific provider or the nature of such services, products, or devices; or (2) the report is being provided to an insurance company for a purpose relating to engaging in the business of insurance other than property and casualty insurance. (Sec. 702) ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL32121