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Title VII — Prohibition on misleading and unfair consumer reporting practices

H.R. 3621 · 116th Congress · Jan 30, 2020 · Lineage

VII Prohibition on misleading and unfair consumer reporting practices

Sec. 701 Prohibition on automatic renewals for promotional consumer reporting and credit scoring products and services

The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended—
(1)
by adding at the end the following new section:

“630. Promotional periods

“(a) Termination notice—With respect to any product or service related to a consumer report or a credit score that is provided to a consumer under promotional terms, the seller or provider of such product or service shall provide clear and conspicuous notice to the consumer within a reasonable period of time before the promotional period ends.

“(b) Opt-In—With respect to any such product or service, the seller or provider may not continue to sell or provide such product or service to the consumer after the end of the promotional period unless the consumer specifically agrees at the end of the promotional period to continue receiving the product or service.”

(2)
in the table of contents for such Act, by inserting after the item relating to section 629 the following new item:

Sec. 702 Prohibition on misleading and deceptive marketing related to the provision of consumer reporting and credit scoring products and services

Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g), as amended by section 206, is further amended—
(1)
in subsection (a)—
(A)
in paragraph (1)—
(i)
by striking “request, except” and all that follows through “consumer to whom” and inserting “request, unless the consumer to whom”;
(ii)
by striking “disclosure; and” and inserting “disclosure.”; and
(iii)
by striking subparagraph (B); and
(B)
in paragraph (6), by inserting “or educational credit score (if applicable) under subsection (f) or section 612” before the period at the end; and
(2)
by adding at the end the following new subsection:

“(j) Disclosures on products and services—The Bureau, in consultation with the Federal Trade Commission, shall issue regulations within 18 months of the date of the enactment of this subsection requiring each consumer reporting agency and reseller to clearly and conspicuously disclose all material terms and conditions, including any fee and pricing information associated with any products or services offered, advertised, marketed, or sold to consumers by the agency or reseller. Such disclosures shall be made in all forms of communication to consumers and displayed prominently on the agency or reseller’s website and all other locations where products or services are offered, advertised, marketed, or sold to consumers.”

Sec. 703 Prohibition on excessive direct-to-consumer sales

The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended by section 407, is further amended—
(1)
by adding after section 632 the following new section:

“633. Fair and reasonable fees for products and services

“The Bureau may, with respect to any product or service offered by a consumer reporting agency to a consumer, set a fair and reasonable maximum fee that may be charged for such product or service, except where such maximum fee is otherwise provided under this title.”

(2)
in the table of contents for such Act, by adding at the end the following new item:

Sec. 704 Fair access to consumer reporting and credit scoring disclosures for nonnative English speakers and the visually and hearing impaired

The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended by section 903, is further amended—
(1)
by adding at the end the following new section:

“635. Fair access to information for nonnative English speakers and the visually and hearing impaired

“(a) In general—Not later than 180 days after the date of the enactment of this section, the Bureau shall issue a rule to require consumer reporting agencies and persons who furnish information to consumer reporting agencies under this title, to the maximum extent reasonably practicable—

“(1) to provide any information, disclosures, or other communication with consumers—

“(A) in each of the 10 most commonly spoken languages, other than English, in the United States, as determined by the Bureau of the Census on an ongoing basis; and

“(B) in formats accessible to individuals with hearing or vision impairments; and

“(2) to ensure that—

“(A) customer service representatives, including employees assigned to handle disputes or appeals under sections 611 and 623, who are available to assist consumers are highly familiar with the requirements of this title;

“(B) such representatives are available during regular business hours and outside of regular business hours, including evenings and weekends; and

“(C) at least one among such representatives is fluent in each of the 10 most commonly spoken languages, other than English, in the United States, as determined by the Bureau of the Census on an ongoing basis.

“(b) Bureau consultation—The Bureau shall consult with advocates for civil rights, consumer groups, community groups, and organizations that serve traditionally underserved communities and populations in issuing the rule described in subsection (a).”

(2)
in the table of contents for such Act, by adding at the end the following new item:

Sec. 705 Comparison shopping for loans without harm to credit standing

Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c), as amended by section 401, is further amended by adding at the end the following new subsection:

“(h) Encouraging comparison shopping for loans

“(1) In general—With respect to multiple enquiries of the same type made to a consumer reporting agency for a consumer report or credit score with respect to a consumer, any credit scoring model shall treat such enquiries as a single enquiry if the enquiries are made within a 120-day period.

“(2) Definition of enquiries of the same type—With respect to multiple enquiries made to a consumer reporting agency for a consumer report or credit score with respect to a consumer, such enquiries are “of the same type” if the consumer reporting agency has reason to believe that the enquiries are all made for the purpose of determining the consumer’s creditworthiness for an extension of credit described in one of the following:

“(A) A covered residential mortgage loan (as defined in section 605C).

“(B) A motor vehicle loan or lease (as described in section 609(i)).

“(C) A private education loan.

“(D) Any other consumer financial product or service, as determined by the Bureau.”

Sec. 706 Nationwide consumer reporting agencies registry

The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended by section 704, is further amended—
(1)
by adding at the end the following new section:

“636. Nationwide consumer reporting agencies registry

“(a) In general—Not later than 1 year after the date of enactment of this section, the Bureau shall establish and maintain a publicly accessible registry of consumer reporting agencies described in subsection (p) or (x) of section 603 (and any other agencies the Bureau determines provide similar services to such consumer reporting agencies) that includes current contact information of each such agency, including the Internet website address of the Internet website described under section 611(h), and information on how consumers can obtain their consumer report, credit scores, or educational credit scores (as applicable) by toll-free telephone, postal mail, or electronic means.

“(b) Registry requirements—The registry described in subsection (a) shall—

“(1) identify the largest agencies and the markets and demographics covered by such agencies; and

“(2) disclose, with respect to each agency, whether the agency is subject to the supervisory authority of the Bureau under this title.

“(c) Information updates—Each agency described under subsection (a) shall submit to the Bureau contact information for the registry, including any updates to such information. The Bureau shall—

“(1) independently verify information submitted by each agency; and

“(2) update the registry not less frequently than annually.”

(2)
in the table of contents for such Act by adding at the end the following new item:

Sec. 707 Protection for certain consumers affected by a shutdown

(a)
Definition of employee affected by a shutdown— Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a), as amended by section 901, is further amended by adding at the end the following:

“(ff) Employee affected by a shutdown—With respect to a shutdown, the term employee affected by a shutdown means a consumer who—

“(1) is an employee of—

“(A) the Federal Government, and who is furloughed or excepted from a furlough during the shutdown;

“(B) the District of Columbia, and who is furloughed or excepted from a furlough during the shutdown;

“(C) the District of Columbia Courts, and who is furloughed or excepted from a furlough during the shutdown;

“(D) the Public Defender Service for the District of Columbia, and who is furloughed or excepted from a furlough during the shutdown; or

“(E) a Federal contractor (as defined under section 7101 of title 41, United States Code) or other business, and who has experienced a substantial reduction in pay (directly or indirectly) due to the shutdown; and

“(2) who—

“(A) is listed in the database established under section 63; or

“(B) has self-certified pursuant to such section.

“(gg) Shutdown—The term shutdown means any period in which there is more than a 24-hour lapse in appropriations as a result of a failure to enact a regular appropriations bill or continuing resolution.

“(hh) Covered shutdown period—The term covered shutdown period means, with respect to a shutdown, the period beginning on the first day of the shutdown and ending on the date that is 90 days after the last day of the shutdown.”

(b)
Exclusion for employees affected by a shutdown— Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)), as amended by section 809, is further amended by adding at the end the following:

“(18) Any adverse item of information with respect to an action or inaction taken during a covered shutdown period by an employee affected by a shutdown.”

(c)
Amendment to summary of rights for employees affected by a shutdown— Section 609(a) of the Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is amended by adding at the end the following:

“(7) Information on the rights of an employee affected by a shutdown, including which consumers may be an employee affected by a shutdown and the process for a consumer to self-certify as an employee affected by a shutdown under section 637.”

(d)
Database and self-Certification for employees affected by a shutdown—
(1)
In general— The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended by section 706, is further amended by adding at the end the following new section:

“637. Database and self-certification for employees affected by a shutdown

“(a) Database

“(1) In general—With respect to each shutdown, the consumer reporting agencies described in section 603(p) shall jointly establish a database that includes employees affected by the shutdown as reported pursuant to paragraph (2).

“(2) Contents of database

“(A) Furloughed employees and contractors—Each authority of the executive, legislative, or judicial branch of the Federal Government or District of Columbia shall provide to the consumer reporting agencies described in section 603(p) a list identifying—

“(i) employees of such authority that are furloughed, excepted from furlough, or not receiving pay because of a shutdown; and

“(ii) to the extent practicable, employees of contractors of such authority.

“(B) Self-certified consumers—A consumer that self-certifies as an employee affected by a shutdown pursuant to subsection (b) shall be included in the database, unless the Bureau determines such consumer is not an employee affected by a shutdown.

“(3) Access to database—The consumer reporting agencies described in section 603(p) shall make the database established under this subsection available to the Bureau, other consumer reporting agencies, furnishers of information to consumer reporting agencies, and users of consumer reports. A consumer reporting agency described in section 603(x) shall periodically access the database to confirm the accuracy of information such an agency has that identifies a consumer as an employee affected by a shutdown.

“(b) Self-Certification process—A consumer shall be deemed to be an employee affected by a shutdown if such consumer self-certifies through—

“(1) the website established under subsection (c); or

“(2) a toll-free telephone number established by a consumer reporting agency.

“(c) Website—The consumer reporting agencies described in section 603(p) shall jointly establish a website for a consumer to self-certify as an employee affected by a shutdown. Such website may not include any advertisement or other solicitation.

“(d) Opt-Out—The consumer reporting agencies described in section 603(p) shall provided a process through the website described under subsection (c) for consumers to opt-out of having their name included in the database established under this section.”

(2)
Table of contents amendment— The table of contents of the Fair Credit Reporting Act, as amended by section 706, is further amended by adding at the end the following new item:
(e)
Prohibition on adverse actions against employees affected by a shutdown— Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended by adding at the end the following:

“(h) Prohibition on adverse actions against employees affected by a shutdown—If a user of a consumer report knows that a consumer is an employee affected by a shutdown, such user may not take an adverse action based on—

“(1) any adverse item of information contained in such report with respect to an action or inaction taken during a covered shutdown period by the employee; or

“(2) information on the consumer included in the database established under section 637.”

(f)
Bureau regulations or guidance— Not later than 30 days after the date of the enactment of this Act, the Director of the Bureau of Consumer Financial Protection shall issue rules or guidance, as appropriate, to carry out the requirements of this Act.