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United States · Bill · S

S. 783 (103rd)

Consumer Reporting Reform Act of 1994

openUnited States· United States Congress· EN

Introduced

7 April 1993

Last action

28 September 1994 · Floor

Status

Message on House action received in Senate and at the desk: House amendment to Senate bill.

Sponsors

Sen. Bryan, Richard H. [D-NV], Sen. Bond, Christopher S. [R-MO], Sen. Riegle, Donald W., Jr. [D-MI], Rep. Simon, Paul [D-IL-24], Sen. Sarbanes, Paul S. [D-MD]

Subjects

Discovery layer

Source updated

14 January 2025

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Summary

TABLE OF CONTENTS: Title I: Amendments to the Fair Credit Reporting Act Title II: Credit Repair Organizations Consumer Reporting Reform Act of 1993 - Title I: Amendments to the Fair Credit Reporting Act - Amends the Fair Credit Reporting Act (the Act) to specify that the term "credit or insurance (credit) transaction which is not initiated by the consumer" does not include use of a consumer report (CR) by a person with which the consumer has an account for purposes of reviewing or collecting the account. Allows the furnishing of a CR for: (1) a legitimate business need in connection with a business transaction that is initiated by the consumer or is a direct marketing transaction for which the furnishing of a report is not prohibited by provisions enacted by this Act; and (2) employment purposes only if certain disclosures are made, the employee or prospective employee consents, and the information will not be used in violation of any Federal or State equal employment opportunity law or regulation. Prohibits: (1) using or obtaining information from a CR unless it is obtained for an authorized purpose and the purpose is certified under certain provisions of the Act; and (2) a consumer reporting agency (CRA) from prohibiting a CR user from disclosing the CR to the consumer if adverse action against the consumer is contemplated. Sets forth restrictions regarding the furnishing of a CR: (1) in connection with a solicitation for credit that is not initiated by the consumer; and (2) for use in direct marketing not initiated by the consumer. Requires CRAs: (1) to maintain a notification system, including a toll-free telephone number, which permits any consumer to elect to be excluded from lists provided in connection with solicitations of credit not initiated by the consumer; and (2) with nationwide files to maintain a notification system jointly with other such CRAs. Removes exceptions to prohibitions on reporting obsolete information. (Current law prohibits reporting information which is over a specified number of years old, except for credit transactions, life insurance, or employment involving amounts over specified limits.) Regulates the beginning of the seven-year reporting period for certain types of information. Prohibits including in a CR any adverse information that is more than ten years old or that could not be included in any CR in accordance with specified provisions. Requires CRAs to: (1) include information it has received that an account was voluntarily closed by the consumer; (2) accept from a consumer and include in the consumer's file relevant and timely information that is not in computerized form if the information would have a positive impact on a determination of credit worthiness and is submitted in compliance with Federal Trade Commission (FTC) regulations; and (3) notify regular information suppliers of the suppliers' responsibilities under the Act. Prohibits a person who procures a CR from reselling the information unless the identity of the end user and the purpose is disclosed to the CRA. Requires a CRA to: (1) disclose to a consumer all information in the consumer's file, certain information about the recipients of a CR, a record of inquiries in the last year that identified the consumer in connection with a credit transaction which is not initiated by the consumer, and with any such disclosures, a summary of the consumer's rights under the Act; and (2) unless the dispute is frivolous or irrelevant, reinvestigate disputed information free of charge, notify the information furnisher, delete inaccurate or unverifiable information, and notify the consumer of the results of the reinvestigation. Regulates charges by CRAs for certain disclosures. Requires any person who takes an adverse action with respect to a consumer in connection with credit, employment, specified licenses or benefits, or any business transaction involving the consumer to notify the consumer, disclose the identity of the CRA furnishing the report, advise the consumer of certain rights, and give certain information on any credit scoring system used. Subjects any person (currently, any CRA or user of information) to civil liability for willful or negligent noncompliance with the Act. Sets forth duties of furnishers of information to CRAs, including a prohibition on furnishing information which the furnisher knows or should know is incomplete or inaccurate. Authorizes: (1) the chief law enforcement officer of a State to bring an action to restrain a violation of the Act, recover amounts, seek remedies as allowed under State laws, and collect a civil monetary penalty; and (2) the FTC to use all its functions and powers under the Federal Trade Commission Act (FTCA) to enforce the Act. Requires each CRA which compiles and maintains consumer reports nationwide to maintain a toll-free telephone number. Title II: Credit Repair Organizations - Amends the Consumer Credit Protection Act to provide that specified provisions of that Act may be cited as the Credit Repair Organizations Act. Prohibits credit repair organizations (CROs) from taking certain actions, including: (1) charging or receiving any valuable consideration for any service before the service is fully performed; (2) advising any consumer to make an untrue or misleading statement; (3) advising any consumer to alter the consumer's identification to prevent the display of the consumer's credit record; or (4) other fraud or deception. Specifies a statement which a CRO must provide to consumers before an agreement is executed regarding the consumer, the CRO, and related rights, powers, and obligations. Requires written, signed contracts covering specified matters in order for a CRO to provide services. Allows a consumer to cancel a contract with a CRO within three business days of making the contract. Declares void any consumer waiver of any protection under this title. Makes an attempt to obtain a waiver a violation of this title. Voids any contract not in compliance with this title. Provides for civil liability for CRAs failing to comply with this title, including allowing punitive damages and class actions. Requires enforcement of this title under the FTCA by the FTC. Makes: (1) a violation of this title an unfair or deceptive act or practice in violation of specified provisions of the FTCA; and (2) all functions and powers of the FTC available for enforcement of this title. Allows State enforcement through Federal or State courts.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

  1. 7 April 1993

    Introduced

    Sponsor introductory remarks on measure. (CR S4568-4569)

    Source: IntroReferral

  2. 7 April 1993

    Introduced

    Read twice and referred to the Committee on Banking.

    Source: IntroReferral

  3. 7 April 1993

    Introduced

    Introduced in Senate

    Source: IntroReferral

  4. 27 May 1993

    Committee

    Committee on Banking. Hearings held.

    Source: Committee

  5. 28 October 1993

    Reported

    Committee on Banking. Ordered to be reported with an amendment in the nature of a substitute favorably.

    Source: Committee

  6. 9 December 1993

    Calendars

    Placed on Senate Legislative Calendar under General Orders. Calendar No. 342.

    Source: Calendars

  7. 9 December 1993

    Reported

    Committee on Banking. Reported to Senate by Senator Riegle under the authority of the order of Nov 17, 93 with an amendment in the nature of a substitute. With written report No. 103-209. Additional views filed.

    Source: Committee

  8. 9 December 1993

    Reported

    Committee on Banking. Reported to Senate by Senator Riegle under the authority of the order of Nov 17, 93 with an amendment in the nature of a substitute. With written report No. 103-209. Additional views filed.

    Source: Committee

  9. 26 April 1994

    Introduced

    Sponsor introductory remarks on measure. (CR S4800-4801)

    Source: IntroReferral

  10. 2 May 1994

    Floor

    Measure laid before Senate by unanimous consent. (consideration: CR S4965-4977, S4982-4983)

    Source: Floor

  11. 3 May 1994

    Floor

    Considered by Senate. (consideration: CR S5026-5047)

    Source: Floor

  12. 4 May 1994

    Floor

    Considered by Senate. (consideration: CR S5129-5146)

    Source: Floor

  13. 4 May 1994

    Vote

    Passed/agreed to in Senate: Passed Senate with an amendment by Yea-Nay Vote. 87-10. Record Vote No: 100.

    Source: Floor

  14. 5 May 1994

    Floor

    Message on Senate action sent to the House.

    Source: Floor

  15. 5 May 1994

    Floor

    Held at the desk.

    Source: Floor

  16. 5 May 1994

    Floor

    Received in the House.

    Source: Floor

  17. 27 September 1994

    Passed

    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.

    Source: Floor

  18. 27 September 1994

    Passed

    Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.

    Source: Floor

  19. 27 September 1994

    Floor

    DEBATE - The House proceeded with forty minutes of debate.

    Source: Floor

  20. 27 September 1994

    Floor

    Considered under suspension of the rules. (consideration: CR H9797-9815, H9842)

    Source: Floor

  21. 27 September 1994

    Passed

    Motion to reconsider laid on the table Agreed to without objection.

    Source: Floor

  22. 27 September 1994

    Vote

    At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 5, rule I, the chair announced that further proceedings on the motion would be postponed.

    Source: Floor

  23. 27 September 1994

    Floor

    Mr. Kennedy moved to suspend the rules and pass the bill, as amended.

    Source: Floor

  24. 28 September 1994

    Floor

    Message on House action received in Senate and at the desk: House amendment to Senate bill.

    Source: Floor

Votes

4 May 1994 · Bill Passed · On Passage of the Bill S. 783 · Bill Passed · Official source

Yes 87 · No 10 · Abstain — · Absent/not voting 3

Showing the first 8 recorded positions. Vote totals above are complete.

Versions

Documents

12 official files

Sponsors

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Sources

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