Sec. 110401. Reporting of information during major disasters

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The CARES Act ( Public Law 116–136 ) is amended by striking section 4021 and inserting the following: The purpose of this section, and the amendments made by this section, is to protect consumers' credit from negative impacts as a result of financial hardship due to the coronavirus disease (COVID–19) outbreak and future major disasters. The Fair Credit Reporting Act is amended by inserting after section 605B the following: In this section: With respect to a covered period, the term consumer shall only include a consumer who is a resident of the affected area covered by the applicable disaster or emergency declaration.

The term covered major disaster period means the period— beginning on the date on which a major disaster is declared by the President under— section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 ), under which assistance is authorized under section 408 of such Act ( 42 U.S.C. 5174 ); or section 501 of such Act; and ending on the date that is 120 days after the end of the incident period for such disaster. The term covered period means the COVID–19 emergency period or a covered major disaster period.

The term COVID–19 emergency period means the period beginning on March 13, 2020 (the date the President declared the emergency under section 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019 (COVID-19) pandemic) and ending on the later of— 120 days after the date of enactment of this section; or 120 days after the end of the incident period for such emergency. The term major disaster means a major disaster declared by the President under— section 401 of the Robert T.

Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 ), under which assistance is authorized under section 408 of such Act ( 42 U.S.C. 5174 ); or section 501 of such Act. No person may furnish any adverse item of information (except information related to a felony criminal conviction) relating to a consumer that was the result of any action or inaction that occurred during a covered period. In addition to the information described in section 605(a), no consumer reporting agency may make any consumer report containing an adverse item of information (except information related to a felony criminal conviction) relating to a consumer that was the result of any action or inaction that occurred during a covered period.

Not later than 60 days after the date of enactment of this section, the Director of the Bureau shall update the model summary of rights under section 609(c)(1) to include a description of the right of a consumer to— request the deletion of adverse items of information under subsection (e); and request a consumer report or score, without charge to the consumer, under subsection (f). Not later than 60 days after the date of enactment of this subsection, the Director of the Bureau shall create a website for consumers to report, under penalty of perjury, economic hardship as a result of the coronavirus disease (COVID–19) outbreak or a major disaster for the purpose of providing credit report protections under this subsection.

The Director of the Bureau shall— not require any documentation from a consumer to substantiate the economic hardship; and provide notice to the consumer that a report under subparagraph

(A)is under penalty of perjury. A consumer may report economic hardship under subparagraph

(A)during a covered period and for 60 days thereafter. The Director of the Bureau shall establish and maintain a secure database that— is accessible to each consumer reporting agency described in section 603(p) and nationwide specialty consumer reporting agency for purposes of fulfilling their duties under paragraph

(3)to check and automatically delete any adverse item of information (except information related to a felony criminal conviction) reported that occurred during a covered period with respect to a consumer; and contains the information reported under paragraph (1). Each consumer reporting agency described in section 603(p) and each nationwide specialty consumer reporting agency shall, using the information contained in the database established under paragraph (2), delete from the file of each consumer named in the database each adverse item of information (except information related to a felony criminal conviction) that was a result of an action or inaction that occurred during a covered period or in the 270-day period following the end of a covered period. Each consumer reporting agency described in section 603(p) and each nationwide specialty consumer reporting agency shall check the database at least weekly and delete adverse items of information as soon as practicable after information that is reported under paragraph

(1)appears in the database established under paragraph (2). A consumer who has filed a report of economic hardship with the Bureau may submit a request, without charge to the consumer, to a consumer reporting agency described in section 603(p) or nationwide specialty consumer reporting agency to delete from the consumer’s file an adverse item of information (except information related to a felony criminal conviction) that was a result of an action or inaction that occurred during a covered period or in the 270-day period following the end of a covered period. A consumer may submit a request under subparagraph (A), not later than the end of the 270-day period described in that subparagraph. Upon receiving a request under this paragraph to delete an adverse item of information, a consumer reporting agency described in section 603(p) or nationwide specialty consumer reporting agency shall— delete the adverse item of information (except information related to a felony criminal conviction) from the consumer’s file; and notify the consumer and the furnisher of the adverse item of information of the deletion. During the period between the beginning of a covered period and ending 12-months after the end of the covered period, each consumer reporting agency described under section 603(p) and each nationwide specialty consumer reporting agency shall make all disclosures described under section 609 upon request by a consumer, by mail or online, without charge to the consumer and without limitation as to the number of requests. Such a consumer reporting agency shall also supply a consumer, upon request and without charge, 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 a consumer. A file disclosure or credit score under paragraph

(1)shall be provided to the consumer not later than— 7 days after the date on which the request is received if the request is made by mail; and not later than 15 minutes if the request is made online. A file disclosure provided under paragraph

(1)shall be in addition to any disclosure requested by the consumer under section 612(a). A consumer reporting agency that receives a request under paragraph

(1)may not request or require any documentation from the consumer that demonstrates that the consumer was impacted by the coronavirus disease (COVID–19) outbreak or a major disaster (except to verify that the consumer is a resident of the affected area covered by the applicable disaster or emergency declaration) as a condition of receiving the file disclosure or score. Not later than 30 days after the date of enactment of this section, each consumer reporting agency described under section 603(p) and each nationwide specialty consumer reporting agency shall prominently post and maintain a direct link on the homepage of the public website of the consumer reporting agency information relating to the right of consumers to— request the deletion of adverse items of information (except information related to a felony criminal conviction) under subsection (e); and request consumer file disclosures and scores, without charge to the consumer, under subsection (f). No person shall furnish adverse information to a consumer reporting agency related to medical debt if such medical debt is with respect to medical expenses related to treatments arising from COVID–19 or a major disaster (whether or not the expenses were incurred during a covered period). No consumer reporting agency may make a consumer report containing adverse information related to medical debt if such medical debt is with respect to medical expenses related to treatments arising from COVID–19 or a major disaster (whether or not the expenses were incurred during a covered period). A person that creates and implements credit scoring models may not treat the absence, omission, or deletion of any information pursuant to this section as a negative factor or negative value in credit scoring models created or implemented by such person. . The table of contents for the Fair Credit Reporting Act is amended by inserting after the item relating to section 605B the following: 605C. Reporting of information during major disasters. . The Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq.) is amended— by adding at the end the following: With respect to a person that creates and implements credit scoring models, such person may not, during a covered period (as defined under section 605C), create or implement a new credit scoring model (including a revision to an existing scoring model) if the new credit scoring model would identify a significant percentage of consumers as being less creditworthy when compared to the previous credit scoring models created or implemented by such person. ; and in the table of contents for such Act, by adding at the end the following new item: 630. Limitations on new credit scoring models during the COVID–19 emergency and major disasters. . . The table of contents in section 2 of the CARES Act is amended by striking the item relating to section 4021 and inserting the following: Sec. 4021. Reporting of information during major disasters. Sec. 4021A. Limitations on new credit scoring models during the COVID–19 emergency and major disasters. . Subparagraph

(F)of section 623(a)(1) of the Fair Credit Reporting Act ( 15 U.S.C. 1681s–2(a)(1) ) is hereby repealed.

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