Sec. 3. Increased requirements for consumer reporting agencies and furnishers of information

1,353 words·~6 min read·/bill/115/s/1786/is/section-3

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The Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq.) is amended— in section 611 ( 15 U.S.C. 1681i )— in subsection (a)— in paragraph (2)— in subparagraph (A), in the second sentence, by inserting , including all documentation provided by the consumer after received from the consumer or reseller ; and in subparagraph (B), by inserting , including all documentation provided by the consumer, after from the consumer or the reseller ; and in paragraph (4), by inserting , including all documentation, after relevant information ; and in subsection (f)(2)(B)(ii), by inserting , including all documentation, after relevant information ; and in section 623 ( 15 U.S.C. 1681s–2 )— in subsection (a)(8)(E), by striking clause

(ii)and inserting the following: review and consider all relevant information, including all documentation, provided by the consumer with the notice; ; and in subsection (b)(1), by striking subparagraph

(B)and inserting the following: review and consider all relevant information, including all documentation, provided by the consumer reporting agency under section 611(a)(2); . Section 611 of the Fair Credit Reporting Act ( 15 U.S.C. 1681i ) is amended by adding at the end the following: The Bureau shall provide reports regarding the disputes described in subsection (a)(1) received by consumer reporting agencies in such intervals and to such parties as the Bureau deems appropriate. The Bureau shall prescribe rules for the gathering of information relating to disputes described in subsection (a)(1) received by consumer reporting agencies to be used in generating the reports under paragraph (1), including rules establishing— the type and format of information that the Bureau shall receive from each consumer reporting agency; and the frequency with which the Bureau shall receive the information from consumer reporting agencies. . Section 607 of the Fair Credit Reporting Act ( 15 U.S.C. 1681e ) is amended by striking subsection

(b)and inserting the following: A consumer reporting agency shall follow reasonable procedures when preparing a consumer report to ensure the maximum possible accuracy of the information concerning the individual to whom the consumer report relates. Not later than 1 year after the date of enactment of the Stopping Errors in Consumer Use and REporting Act of 2017 , the Bureau shall issue a proposed rule establishing the procedures that a consumer reporting agency shall follow to ensure maximum possible accuracy of all consumer reports furnished by the agency in compliance with this subsection. When formulating the rule required under subparagraph (A), the Bureau shall consider if requiring the matching of the following information would improve the accuracy of consumer reports: The first name and last name of a consumer. The date of birth of a consumer. All 9 digits of the social security number of a consumer. Any other information that the Bureau determines would aid in ensuring maximum possible accuracy of all consumer reports furnished by consumer reporting agencies in compliance with this subsection. . Section 623(a)(8)(F)(i)(II) of the Fair Credit Reporting Act ( 15 U.S.C. 1681s–2(a)(8)(F)(i)(II) ) is amended by inserting , and does not include any new or additional information that would be relevant to a reinvestigation before the period at the end. Section 609 of the Fair Credit Reporting Act ( 15 U.S.C. 1681g ) is amended— in subsection (a)(3)(B)— in clause (i), by striking and at the end; and by striking clause

(ii)and inserting the following: the address and telephone number of the person; and the permissible purpose of the person for obtaining the consumer report, including the specific type of credit product that is extended, reviewed, or collected, as described in section 604(a)(3)(A). ; in subsection (f)— by amending paragraph (7)(A) to read as follows: supply the consumer with a credit score that— is derived from a credit scoring model that is widely distributed to users by the consumer reporting agency for the purpose of any extension of credit or other transaction designated by the consumer who is requesting the credit score; or is widely distributed to lenders of common consumer loan products and predicts the future credit behavior of the consumer; and ; and in paragraph (8), by inserting , except that a credit score shall be provided free of charge to the consumer if requested in connection with a free annual consumer report described in section 612(a) before the period at the end; and in subsection (g)(1)— in subparagraph (A)(ii), by striking subparagraph

(D)and inserting subparagraph

(C); in subparagraph (B)(ii), by striking consistent with subparagraph

(C); by striking subparagraph (C); and by redesignating subparagraphs

(D)through

(G)as subparagraphs

(C)through (F), respectively. The Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq.) is amended— in section 612 ( 15 U.S.C. 1681j ), by striking subsection

(b)and inserting the following: Not later than 14 days after the date on which a consumer reporting agency receives a notification under subsection (a)(2) or (h)(6) of section 615, or from a debt collection agency affiliated with the consumer reporting agency, the consumer reporting agency shall make, without charge to the consumer, all disclosures required in accordance with the rules prescribed by the Bureau under section 609(h). During the period beginning on the effective date of the Stopping Errors in Consumer Use and REporting Act of 2017 and ending on the date on which the Bureau finalizes the rule required under section 609(h), a consumer reporting agency that is required to make disclosures under this subsection shall provide to the consumer a copy of the current credit report on the consumer and any other disclosures required under this Act or the Stopping Errors in Consumer Use and REporting Act of 2017 , without charge to the consumer. ; and in section 615(a) ( 15 U.S.C. 1681m(a) )— by redesignating paragraphs (2), (3), and

(4)as paragraphs (3), (4), and (5), respectively; by inserting after paragraph

(1)the following: direct the consumer reporting agency that provided the consumer report that was used in the decision to take the adverse action to provide the consumer with the disclosures described in section 612(b); ; and in paragraph (5), as so redesignated— in the matter preceding subparagraph (A), by striking of the consumer's right ; by striking subparagraph

(A)and inserting the following: that the consumer shall receive a copy of the consumer report with respect to the consumer, free of charge, from the consumer reporting agency that furnished the consumer report; and ; and in subparagraph (B), by inserting of the right of the consumer before to dispute . Section 615(h) of the Fair Credit Reporting Act ( 15 U.S.C. 1681m(h) ) is amended— in paragraph (1), by striking paragraph

(6)and inserting paragraph

(7); in paragraph (2), by striking paragraph

(6)and inserting paragraph

(7); in paragraph (5)(C), by striking may obtain and inserting shall receive ; by redesignating paragraphs (6), (7), and

(8)as paragraphs (7), (8), and (9), respectively; and by inserting after paragraph

(5)the following: A person who uses a consumer report as described in paragraph

(1)shall notify and direct the consumer reporting agency that provided the consumer report to provide the consumer with the disclosures described in section 612(b). . Section 623(a)(7)(A)(ii) of the Fair Credit Reporting Act ( 15 U.S.C. 1681s–2(a)(7)(A)(ii) ) is amended by striking account, or customer and inserting or account . Section 609 of the Fair Credit Reporting Act ( 15 U.S.C. 1681g ) is amended by adding at the end the following: Not later than 1 year after the date of enactment of the Stopping Errors in Consumer Use and REporting Act of 2017 , the Bureau shall publish a proposed rule to implement the disclosure requirements described in section 612(b). In formulating the rule required under paragraph (1), the Bureau shall consider— what information would enable consumers to— determine the reasons for which a person— took adverse action; or offered credit on materially less favorable terms; and verify the accuracy of that information; and how to provide the information described in subparagraph

(A)while protecting consumer privacy, including procedures to ensure that the information is provided to the consumer at the appropriate address. .

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