H.R. 3618 — what changed
Free Credit Scores for Consumers Act of 2019
From Introduced in House to Reported in House. 2 sections amended between Introduced in House and Reported in House.
Sec. 3 Definitions
In general— Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is amended by adding at the end the following new subsection:
“(bb) Credit score and educational credit score definitions
“(1) Credit score—The term credit score means a numerical value or a categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan or extends credit to predict the likelihood of certain credit behaviors, including default, as determined by the Bureau.
“(2) Educational credit score—The term educational credit score means a numerical value or categorization derived from a statistical tool or modeling system based upon information from a consumer report that assists consumers in understanding how a lender or creditor may view the consumer’s creditworthiness in deciding whether to make a loan or extend credit to that consumer.
“(3) Key factors—The term key factors means relevant elements or reasons affecting the credit score for the particular individual, listed in the order of importance based on the effect of each element or reason on the credit score or educational credit score.
“(4) Credit scoring model—The term credit scoring model means a scoring algorithm, formula, model, program, or mechanism used to generate a credit score or an educational credit score.”
Conforming amendments— The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended—
in section 605(d)(2), by striking “(as defined in section 609(f)(2)(B))”; and
in section 615—
by striking “as defined in section 609(f)(2)(A)” each place that term appears; and
changed
in subsection (a)(2)(B), by striking “set forth in subparagraphs (B) through (E) of section 609(f)(1)” and inserting “with respect to a credit score described in section 609(f)(2), if available” each place that term appears.
Sec. 6 Provides consumers with free credit score disclosures with their free annual consumer reports upon request and creates instances when consumers automatically receive free consumer reports and credit scores
In general— Section 612 of the Fair Credit Reporting Act (15 U.S.C. 1681j) is amended—
in subsection (a)—
in paragraph (1)—
in subparagraph (A), by inserting after “section 609” the following: “(including the disclosure of a credit score or educational credit score under subsection (f) of such section)”; and
in subparagraph (C)—
changed
by striking “Commission” each place such term appears and inserting “Bureau”; and
by inserting “, credit scores, and educational credit scores (as applicable)” after “consumer reports” each place that term appears;
in paragraph (2)—
by striking “15 days” and inserting “3 business days”; and
by inserting “, credit score, or educational credit score” after “consumer report”;
in paragraph (3), by inserting “, credit score, or educational credit score” after “consumer report”; and
in paragraph (4), by inserting “, credit scores, or educational credit scores” after “consumer reports”;
in subsection (b), by inserting “(including the disclosure of a credit score or educational credit score, as applicable, under subsection (f) of such section)” after “section 609”;
in subsection (c)—
by inserting “(including the disclosure of a credit score or educational credit score under subsection (f) of such section)” after “pursuant to section 609”;
in paragraph (2), by striking “; or” and inserting a semicolon;
in paragraph (3), by striking the period at the end and inserting a semicolon; and
by adding at the end the following new paragraphs:
“(4) has disputed information, or submitted an appeal of an investigation or reinvestigation of such information, under section 611 or 623, regardless of whether the consumer has already received a credit report, credit score, or educational credit score under section 611 or 623; or
“(5) has had information that was previously deleted under section 611(a)(5) reinserted into the consumer’s file, regardless of whether the consumer has already received a credit report, credit score, or educational credit score under such section.”
in subsection (d), by inserting “(including the disclosure of a credit score or educational credit score under subsection (f) of such section)” after “section 609”;
in subsection (f)(1)—
by striking “reasonable charge” and all that follows through “section 609” and inserting “reasonable charge on a consumer for providing a consumer report to a consumer”;
by striking subparagraph (B);
by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively (and conforming the margins accordingly); and
in subparagraph (B) (as so redesignated), by striking “disclosure; and” and inserting “disclosure.”; and
by adding at the end the following new subsections:
“(h) Centralized source for obtaining free copy of consumer report and scores
“(1) Nationwide consumer reporting agencies
“(A) In general—Not later than 180 days after the date of enactment of this subsection, each consumer reporting agency described under subsection (p) of section 603 shall prominently display on the home page of the agency’s website—
“(i) a hyperlink labeled “Get Your Free Annual Credit Reports along with either your Credit Scores or Educational Credit Scores provided for under Federal Law” or substantially similar text, as determined by the Bureau; and
“(ii) a disclosure titled “Consumer’s Right to Free Credit Scores, Educational Credit Scores, and Reports under Federal Law” or substantially similar text, as determined by the Bureau that includes the following statement:
“(B) Hyperlink requirements—The hyperlink described in subparagraph (A)(i) shall be prominently located on the top of the home page and should link directly to the website of the centralized source established pursuant to section 211(d) of the Fair and Accurate Credit Transactions Act of 2003 (15 U.S.C. 1681j note).
“(C) Modifications—The Bureau may modify the disclosure described in subparagraph (A)(ii) as necessary to include other circumstances under which a consumer has the right to receive a free consumer report, credit score, or educational credit score.
“(2) Nationwide specialty consumer reporting agencies
“(A) In general—Not later than 180 days after the date of enactment of this subsection, each nationwide specialty consumer reporting agency shall prominently display on the Internet home webpage of the agency a disclosure titled “Consumer’s Right to Free Consumer Reports and Credit Score or Educational Credit Score (as applicable) under Federal Law”. Such disclosure shall include the following statement:
“(B) Modifications—The Bureau may modify the disclosure described in subparagraph (A) as necessary to include other circumstances under which a consumer has the right to receive a free consumer report and credit score or educational credit score (as applicable).
“(C) Toll-free telephone access—The information described in this paragraph shall also be made available via a toll-free telephone number. Such number shall be prominently displayed on the home page of the website of each nationwide specialty consumer reporting agency. Each of the circumstances under which a consumer may obtain a free consumer report and credit score or educational credit score (as applicable) shall be presented in an easily understandable format and consumers shall be directed to an individual who is a customer service representative not later than 2 minutes after the initial phone connection is made by the consumer. Information provided through such telephone number shall comply with the requirements of section 633.
“(D) Online consumer reports; exemption—Upon receipt of a request by a consumer for a consumer report, each nationwide specialty consumer reporting agency shall provide access to such report electronically on the Internet website described in section 611(h).
“(i) Automatic provision of free consumer reports and credit scores or educational credit scores—A consumer reporting agency shall provide to a consumer a free copy of the file and credit score or educational credit score of the consumer who—
“(1) obtains a fraud alert, extended alert, active duty alert, or security freeze as described in section 605A; or
“(2) has disputed information, or submitted an appeal of an investigation or reinvestigation of such information, under section 611 or 623.”
Technical amendment— Section 615(h)(7) of such Act (15 U.S.C. 1681m(h)(7)) is amended by striking “section” and inserting “subsection”.