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Title II — Prohibition on misleading and unfair consumer reporting practices

H.R. 4113 · 117th Congress · Jun 24, 2021 · Lineage

II Prohibition on misleading and unfair consumer reporting practices

201. 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:

202. 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) is 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:

“(h) 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.”

203. Prohibition on excessive direct-to-consumer sales

The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended by section 201, is further amended—
(1)
by adding at the end the following new section:

“631. 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, as amended by section 201, by adding at the end the following new item:

204. 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 203, is further amended—
(1)
by adding at the end the following new section:

“632. 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, as amended by section 203, by adding at the end the following new item:

205. Comparison shopping for loans without harm to credit standing

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

“(i) Encouraging consumers To comparison shop for loans by treating grouped enquiries of the same type within a reasonable period as a single enquiry

“(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) Any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling (as defined in section 103(w) of the Truth in Lending Act), including a loan in which the proceeds will be used for—

“(i) a manufactured home (as defined in section 603 of the Housing and Community Development Act of 1974 (42 U.S.C. 5402));

“(ii) any installment sales contract, land contract, or contract for deed on a residential property; or

“(iii) a reverse mortgage transaction (as defined in section 103 of the Truth in Lending Act).

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

“(C) A private education loan.

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

206. Nationwide consumer reporting agencies registry

The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended by section 204, is further amended—
(1)
by adding at the end the following new section:

“633. 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, as amended by section 204, by adding at the end the following new item: