[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1343 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 1343
To amend the Fair Credit Reporting Act to require that a consumer
authorize the release of certain information.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 22, 2021
Mr. Reed (for himself and Mr. Van Hollen) introduced the following
bill; which was read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Fair Credit Reporting Act to require that a consumer
authorize the release of certain information.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Consumer Credit Control Act of
2021''.
SEC. 2. PERMISSIBLE PURPOSES OF REPORTS.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.) is amended--
(1) in section 604 (15 U.S.C. 1681b)--
(A) by striking subsections (c) through (e) and
inserting the following:
``(c) Conditions for Furnishing Certain Consumer Reports.--
``(1) In general.--A consumer reporting agency may furnish
a consumer report for the following purposes only if the
consumer reporting agency obtains affirmative informed consent
of the consumer to furnish the consumer report and the consumer
reporting agency verifies the identity of the consumer by
reviewing the proper identification required under section 610:
``(A) An extension of credit pursuant to subsection
(a)(3)(A).
``(B) The underwriting of insurance pursuant to
subsection (a)(3)(C).
``(2) Additional reports; election.--After the consumer
reporting agency obtains affirmative informed consent of the
consumer and verifies the identity of the consumer under
paragraph (1), the consumer reporting agency may continue to
furnish consumer reports solely for the purposes of reviewing
or collecting on an account described in subparagraphs (A) and
(C) of subsection (a)(3).
``(3) Furnishing reports in connection with credit or
insurance transactions that are not initiated by consumer.--
``(A) In general.--A consumer reporting agency may
furnish a consumer report to a person in connection
with any credit or insurance transaction under
subparagraph (A) or (C) of subsection (a)(3) that is
not initiated by the consumer only if--
``(i) the consumer reporting agency obtains
affirmative informed consent of the consumer to
furnish the consumer report and the consumer
reporting agency verifies the identity of the
consumer by reviewing the proper identification
required under section 610; and
``(ii) the transaction consists of a firm
offer of credit or insurance.
``(B) Election.--The consumer may elect to--
``(i) have the consumer's name and
addresses included in lists of names and
addresses provided by the consumer reporting
agency pursuant to subparagraphs (A) and (C) of
subsection (a)(3) in connection with any credit
or insurance transaction that is not initiated
by the consumer only if--
``(I) the consumer reporting agency
obtains affirmative informed consent of
the consumer to furnish the consumer
report and the consumer reporting
agency verifies the identity of the
consumer by reviewing the proper
identification required under section
610; and
``(II) the transaction consists of
a firm offer of credit or insurance;
and
``(ii) revoke at any time the election
pursuant to clause (i) to have the consumer's
name and address included in lists provided by
a consumer reporting agency.
``(C) Information regarding inquiries.--Except as
provided in section 609(a)(5), a consumer reporting
agency shall not furnish to any person a record of
inquiries in connection with a credit or insurance
transaction that is not initiated by a consumer.
``(4) Disclosures.--
``(A) In general.--A person may not procure a
consumer report for any purpose pursuant to
subparagraphs (D), (F), and (G) of subsection (a)(3)
unless--
``(i) a simple and easy to understand, as
defined in section 1022.54(b) of title 12, Code
of Federal Regulations, as in effect on the
date of enactment of the Consumer Credit
Control Act of 2021, disclosure has been made
to the consumer at any time before the report
is procured or caused to be procured, that
consists solely of the disclosure and the
opportunity to provide the consent described in
clause (ii), that a consumer report may be
obtained for such purposes; and
``(ii) the person has obtained affirmative
informed consent of the consumer for the
procurement of the consumer report by that
person.
``(B) Authorizations.--The consent described in
subparagraph (A)(ii) shall be provided on the
disclosure described under subparagraph (A)(i).
``(5) Rule making.--Not later than 270 days after the date
of enactment of the Consumer Credit Control Act of 2021, the
Director of the Bureau shall promulgate regulations that--
``(A) implement this subsection;
``(B) establish a model form for the disclosure
document pursuant to paragraph (4);
``(C) permit consumers to provide affirmative
informed consent required by paragraph (1) for a
specific time period for multiple users for the
specified purpose during that time period;
``(D) require a consumer reporting agency--
``(i) to provide to each consumer a secure,
convenient, accessible, and cost-free method,
including by toll-free telephone or secure
electronic means, by which a consumer may--
``(I) provide or revoke any
affirmative informed consent pursuant
to this subsection; and
``(II) make or revoke any election
pursuant to paragraph (3)(B);
``(ii) to implement any provision or
revocation of affirmative informed consent
pursuant to this subsection not later than 1
business day after the date on which a consumer
provides or revokes affirmative informed
consent; and
``(iii) to implement any election or
revocation of any election pursuant to
paragraph (3)(B) not later than 1 business day
after the date on which a consumer makes or
revokes an election; and
``(E) define what constitutes affirmed informative
consent in the manner that provides the greatest
protection to consumers.
``(6) Prohibitions.--
``(A) In general.--The method described in
paragraph (5)(D) shall not be used to--
``(i) collect any information on a consumer
that is not necessary for the purpose of the
consumer to allow or disallow the furnishing of
consumer reports; or
``(ii) advertise any product or service.
``(B) No waiver.--In the offering of a method
described in paragraph (5)(D), a consumer reporting
agency shall not require a consumer to waive any rights
nor indemnify the consumer reporting agency from any
liabilities arising from the offering of such method.
``(7) Reports.--
``(A) CFPB.--
``(i) Recommendation.--Not later than 270
days after the date of enactment of the
Consumer Credit Control Act of 2021, the
Director of the Bureau shall, after
consultation with the Federal Deposit Insurance
Corporation, the National Credit Union
Administration, the Consumer Advisory Board,
and other Federal and State regulators as the
Director of the Bureau determines are
appropriate, submit to the Committee on
Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services
of the House of Representatives recommendations
on how to provide consumers greater
transparency and personal control over their
consumer reports furnished for permissible
purposes under subsections (a)(3)(E) and
(a)(6).
``(ii) Report.--The Director of the Bureau
shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the
House of Representatives an annual report that
includes--
``(I) recommendations on how this
subsection may be improved;
``(II) a description of efforts to
educate consumers of their rights under
this subsection;
``(III) a description of
enforcement actions taken to
demonstrate compliance with this
subsection;
``(IV) recommendations on how to
improve oversight of consumer reporting
agencies and users of consumer reports;
and
``(V) any other recommendations
concerning how consumers may be
provided greater transparency and
control over their personal
information.
``(B) GAO.--
``(i) Study.--The Comptroller General of
the United States shall conduct a study on what
additional protections or restrictions may be
needed to ensure that the information collected
in consumer files is secure and does not
adversely impact consumers.
``(ii) Report.--Not later than 1 year after
the date of enactment of the Consumer Credit
Control Act of 2021, the Comptroller General of
the United States shall submit to the Committee
on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services
of the House of Representatives a report on the
results of the study under clause (i), which
shall include--
``(I) to the greatest extent
possible, the presentation of
unambiguous conclusions and specific
recommendations for further legislative
changes needed to ensure that the
information collected in consumer files
is secure and does not adversely impact
consumers; and
``(II) if no recommendations for
further legislative changes are
presented, a detailed explanation of
why no such changes are recommended.'';
(B) by redesignating subsections (f) and (g) as
subsections (d) and (e), respectively; and
(C) by adding at the end the following:
``(f) No Fees.--No consumer reporting agency may charge a consumer
any fee for any activity pursuant to or as a result of this section.'';
(2) in section 607(a) (15 U.S.C. 1681e(a))--
(A) in the third sentence, by striking ``make a
reasonable effort'' and inserting ``use commercially
reasonable efforts''; and
(B) by inserting ``Every consumer reporting agency
shall use commercially reasonable efforts to avoid
unauthorized access to consumer reports and information
in the file of a consumer maintained by the consumer
reporting agency, including complying with any
appropriate standards established under section 501(b)
of the Gramm-Leach-Bliley Act (15 U.S.C. 6801(b)).''
after the end of the third sentence;
(3) in section 609 (15 U.S.C. 1681g), by striking
subsection (b) and inserting the following:
``(b) Scope of Disclosure.--The Director of the Bureau shall
promulgate regulations to clarify that any disclosure required by
subsection (a) shall be made to the consumer when a consumer makes a
request, irrespective of whether the information required to be
disclosed is held by the parent, subsidiary, or affiliate of a consumer
reporting agency.''; and
(4) in section 610(a)(1) (15 U.S.C. 1681h(a)(1))--
(A) by inserting ``, implementing the provision or
revocation of any affirmative informed consent, or
implementing any election or revocation of any
election'' after ``disclosures''; and
(B) by striking ``section 609'' and inserting
``sections 604 and 609''.
(b) Technical and Conforming Amendments.--The Fair Credit Reporting
Act (15 U.S.C. 1681 et seq.) is amended--
(1) in section 603(d)(3) (15 U.S.C. 1681a(d)(3)), in the
matter preceding subparagraph (A), by striking ``604(g)(3)''
and inserting ``604(e)(3)'';
(2) in section 605A (15 U.S.C. 1681c-1)--
(A) by striking subsections (i) and (j); and
(B) by redesignating subsection (k) as subsection
(i);
(3) in section 615(d) (15 U.S.C. 1681m(d))--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph
(A), by striking ``604(c)(1)(B)'' and inserting
``604(c)(3)(A)(ii)''; and
(ii) in subparagraph (E), by striking
``604(e)'' and inserting ``604(c)(5)(D)''; and
(B) in paragraph (2)(A), by striking ``604(e)'' and
inserting ``604(c)(5)(D)''; and
(4) in section 625(b)(1) (15 U.S.C. 1681t(b)(1))--
(A) in subparagraph (A), by striking ``subsection
(c) or (e) of section 604'' and inserting
``604(c)(3)'';
(B) in subparagraph (I), by adding ``or'' at the
end;
(C) by striking subparagraph (J); and
(D) by redesignating subparagraph (K) as
subparagraph (J).
(c) Applicability.--The amendments made by subsections (a) and (b)
shall apply to a consumer report, as defined in section 603 of the Fair
Credit Reporting Act (15 U.S.C. 1681a), furnished after the earlier
of--
(1) the date on which the rules issued by the Bureau of
Consumer Financial Protection under subsection (c)(5) of
section 604 of the Fair Credit Reporting Act, as amended by
subsection (a) of this section, require compliance; and
(2) the date that is 18 months after the date of enactment
of this Act.
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