Pub.L. 108-160 To reauthorize the United States Institute for <> Environmental Conflict Resolution, and for other purposes. ...

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[[Page 1951]]

            FAIR AND ACCURATE CREDIT TRANSACTIONS ACT OF 2003

[[Page 117 STAT. 1952]]

Public Law 108-159
108th Congress

                                 An Act


 
   To amend the Fair Credit Reporting Act, to prevent identity theft, 
    improve resolution of consumer disputes, improve the accuracy of 
 consumer records, make improvements in the use of, and consumer access 
    to, credit information, and for other purposes. <<NOTE: Dec. 4, 
                         2003 -  [H.R. 2622]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Fair and Accurate Credit 
Transactions Act of 2003.>> assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This <<NOTE: 15 USC 1601 note.>> Act may be cited 
as the ``Fair and Accurate Credit Transactions Act of 2003''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Effective dates.

    TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION

                  Subtitle A--Identity Theft Prevention

Sec. 111. Amendment to definitions.
Sec. 112. Fraud alerts and active duty alerts.
Sec. 113. Truncation of credit card and debit card account numbers.
Sec. 114. Establishment of procedures for the identification of possible 
           instances of identity theft.
Sec. 115. Authority to truncate social security numbers.

 Subtitle B--Protection and Restoration of Identity Theft Victim Credit 
                                 History

Sec. 151. Summary of rights of identity theft victims.
Sec. 152. Blocking of information resulting from identity theft.
Sec. 153. Coordination of identity theft complaint investigations.
Sec. 154. Prevention of repollution of consumer reports.
Sec. 155. Notice by debt collectors with respect to fraudulent 
           information.
Sec. 156. Statute of limitations.
Sec. 157. Study on the use of technology to combat identity theft.

     TITLE II--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT 
                               INFORMATION

Sec. 211. Free consumer reports.
Sec. 212. Disclosure of credit scores.
Sec. 213. Enhanced disclosure of the means available to opt out of 
           prescreened lists.
Sec. 214. Affiliate sharing.
Sec. 215. Study of effects of credit scores and credit-based insurance 
           scores on availability and affordability of financial 
           products.
Sec. 216. Disposal of consumer report information and records.
Sec. 217. Requirement to disclose communications to a consumer reporting 
           agency.

    TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION

Sec. 311. Risk-based pricing notice.

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Sec. 312. Procedures to enhance the accuracy and integrity of 
           information furnished to consumer reporting agencies.
Sec. 313. FTC and consumer reporting agency action concerning 
           complaints.
Sec. 314. Improved disclosure of the results of reinvestigation.
Sec. 315. Reconciling addresses.
Sec. 316. Notice of dispute through reseller.
Sec. 317. Reasonable reinvestigation required.
Sec. 318. FTC study of issues relating to the Fair Credit Reporting Act.
Sec. 319. FTC study of the accuracy of consumer reports.

  TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE 
                            FINANCIAL SYSTEM

Sec. 411. Protection of medical information in the financial system.
Sec. 412. Confidentiality of medical contact information in consumer 
           reports.

          TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT

Sec. 511. Short title.
Sec. 512. Definitions.
Sec. 513. Establishment of Financial Literacy and Education Commission.
Sec. 514. Duties of the Commission.
Sec. 515. Powers of the Commission.
Sec. 516. Commission personnel matters.
Sec. 517. Studies by the Comptroller General.
Sec. 518. The national public service multimedia campaign to enhance the 
           state of financial literacy.
Sec. 519. Authorization of appropriations.

         TITLE VI--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS

Sec. 611. Certain employee investigation communications excluded from 
           definition of consumer report.

                    TITLE VII--RELATION TO STATE LAWS

Sec. 711. Relation to State laws.

                        TITLE VIII--MISCELLANEOUS

Sec. 811. Clerical amendments.

SEC. 2. <<NOTE: 15 USC 1681 note.>> DEFINITIONS.

    As used in this Act--
            (1) the term ``Board'' means the Board of Governors of the 
        Federal Reserve System;
            (2) the term ``Commission'', other than as used in title V, 
        means the Federal Trade Commission;
            (3) the terms ``consumer'', ``consumer report'', ``consumer 
        reporting agency'', ``creditor'', ``Federal banking agencies'', 
        and ``financial institution'' have the same meanings as in 
        section 603 of the Fair Credit Reporting Act, as amended by this 
        Act; and
            (4) the term ``affiliates'' means persons that are related 
        by common ownership or affiliated by corporate control.

SEC. 3. <<NOTE: 15 USC 1681 note.>> EFFECTIVE DATES.

    Except as otherwise specifically provided in this Act and the 
amendments made by this Act--
            (1) <<NOTE: Regulations.>> before the end of the 2-month 
        period beginning on the date of enactment of this Act, the Board 
        and the Commission shall jointly prescribe regulations in final 
        form establishing effective dates for each provision of this 
        Act; and
            (2) the regulations prescribed under paragraph (1) shall 
        establish effective dates that are as early as possible, while 
        allowing a reasonable time for the implementation of the 
        provisions of this Act, but in no case shall any such effective 
        date be later than 10 months after the date of issuance of such 
        regulations in final form.

[[Page 117 STAT. 1954]]

    TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION

                  Subtitle A--Identity Theft Prevention

SEC. 111. AMENDMENT TO DEFINITIONS.

    Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is 
amended by adding at the end the following:
    ``(q) Definitions Relating to Fraud Alerts.--
            ``(1) Active duty military consumer.--The term `active duty 
        military consumer' means a consumer in military service who--
                    ``(A) is on active duty (as defined in section 
                101(d)(1) of title 10, United States Code) or is a 
                reservist performing duty under a call or order to 
                active duty under a provision of law referred to in 
                section 101(a)(13) of title 10, United States Code; and
                    ``(B) is assigned to service away from the usual 
                duty station of the consumer.
            ``(2) Fraud alert; active duty alert.--The terms `fraud 
        alert' and `active duty alert' mean a statement in the file of a 
        consumer that--
                    ``(A) notifies all prospective users of a consumer 
                report relating to the consumer that the consumer may be 
                a victim of fraud, including identity theft, or is an 
                active duty military consumer, as applicable; and
                    ``(B) is presented in a manner that facilitates a 
                clear and conspicuous view of the statement described in 
                subparagraph (A) by any person requesting such consumer 
                report.
            ``(3) Identity theft.--The term `identity theft' means a 
        fraud committed using the identifying information of another 
        person, subject to such further definition as the Commission may 
        prescribe, by regulation.
            ``(4) Identity theft report.--The term `identity theft 
        report' has the meaning given that term by rule of the 
        Commission, and means, at a minimum, a report--
                    ``(A) that alleges an identity theft;
                    ``(B) that is a copy of an official, valid report 
                filed by a consumer with an appropriate Federal, State, 
                or local law enforcement agency, including the United 
                States Postal Inspection Service, or such other 
                government agency deemed appropriate by the Commission; 
                and
                    ``(C) the filing of which subjects the person filing 
                the report to criminal penalties relating to the filing 
                of false information if, in fact, the information in the 
                report is false.
            ``(5) New credit plan.--The term `new credit plan' means a 
        new account under an open end credit plan (as defined in section 
        103(i) of the Truth in Lending Act) or a new credit transaction 
        not under an open end credit plan.

    ``(r) Credit and Debit Related Terms--
            ``(1) Card issuer.--The term `card issuer' means--
                    ``(A) a credit card issuer, in the case of a credit 
                card; and

[[Page 117 STAT. 1955]]

                    ``(B) a debit card issuer, in the case of a debit 
                card.
            ``(2) Credit card.--The term `credit card' has the same 
        meaning as in section 103 of the Truth in Lending Act.
            ``(3) Debit card.--The term `debit card' means any card 
        issued by a financial institution to a consumer for use in 
        initiating an electronic fund transfer from the account of the 
        consumer at such financial institution, for the purpose of 
        transferring money between accounts or obtaining money, 
        property, labor, or services.
            ``(4) Account and electronic fund transfer.--The terms 
        `account' and `electronic fund transfer' have the same meanings 
        as in section 903 of the Electronic Fund Transfer Act.
            ``(5) Credit and creditor.--The terms `credit' and 
        `creditor' have the same meanings as in section 702 of the Equal 
        Credit Opportunity Act.

    ``(s) Federal Banking Agency.--The term `Federal banking agency' has 
the same meaning as in section 3 of the Federal Deposit Insurance Act.
    ``(t) Financial Institution.--The term `financial institution' means 
a State or National bank, a State or Federal savings and loan 
association, a mutual savings bank, a State or Federal credit union, or 
any other person that, directly or indirectly, holds a transaction 
account (as defined in section 19(b) of the Federal Reserve Act) 
belonging to a consumer.
    ``(u) Reseller.--The term `reseller' means a consumer reporting 
agency that--
            ``(1) assembles and merges information contained in the 
        database of another consumer reporting agency or multiple 
        consumer reporting agencies concerning any consumer for purposes 
        of furnishing such information to any third party, to the extent 
        of such activities; and
            ``(2) does not maintain a database of the assembled or 
        merged information from which new consumer reports are produced.

    ``(v) Commission.--The term `Commission' means the Federal Trade 
Commission.
    ``(w) Nationwide Specialty Consumer Reporting Agency.--The term 
`nationwide specialty consumer reporting agency' means a consumer 
reporting agency that compiles and maintains files on consumers on a 
nationwide basis relating to--
            ``(1) medical records or payments;
            ``(2) residential or tenant history;
            ``(3) check writing history;
            ``(4) employment history; or
            ``(5) insurance claims.''.

SEC. 112. FRAUD ALERTS AND ACTIVE DUTY ALERTS.

    (a) Fraud Alerts.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) is amended by inserting after section 605 the following:

``Sec. 605A. <<NOTE: 15 USC 1681c-1.>> Identity theft prevention; fraud 
                        alerts and active duty alerts

    ``(a) One-Call Fraud Alerts.--
            ``(1) Initial alerts.--Upon the direct request of a 
        consumer, or an individual acting on behalf of or as a personal 
        representative of a consumer, who asserts in good faith a 
        suspicion that the consumer has been or is about to become a

[[Page 117 STAT. 1956]]

        victim of fraud or related crime, including identity theft, a 
        consumer reporting agency described in section 603(p) that 
        maintains a file on the consumer and has received appropriate 
        proof of the identity of the requester shall--
                    ``(A) include a fraud alert in the file of that 
                consumer, and also provide that alert along with any 
                credit score generated in using that file, for a period 
                of not less than 90 days, beginning on the date of such 
                request, unless the consumer or such representative 
                requests that such fraud alert be removed before the end 
                of such period, and the agency has received appropriate 
                proof of the identity of the requester for such purpose; 
                and
                    ``(B) refer the information regarding the fraud 
                alert under this paragraph to each of the other consumer 
                reporting agencies described in section 603(p), in 
                accordance with procedures developed under section 
                621(f).
            ``(2) Access to free reports.--In any case in which a 
        consumer reporting agency includes a fraud alert in the file of 

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