PREVENTION OF REPOLLUTION OF CONSUMER REPORTS.

SEC. 154. PREVENTION OF REPOLLUTION OF CONSUMER REPORTS.(a) Prevention of Reinsertion of Erroneous Information.—Section 623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s–2(a)) is amended by adding at the end the following:“(6) Duties of furnishers upon notice of identity theft-related information.—“(A) Reasonable procedures.—A person that furnishes information to any consumer reporting agency shall have in place reasonable procedures to respond to any notification that it receives from a consumer reporting agency under section 605B relating to information resulting 117 STAT. 1967 from identity theft, to prevent that person from refurnishing such blocked information.“(B) Information alleged to result from identity theft.—If a consumer submits an identity theft report to a person who furnishes information to a consumer reporting agency at the address specified by that person for receiving such reports stating that information maintained by such person that purports to relate to the consumer resulted from identity theft, the person may not furnish such information that purports to relate to the consumer to any consumer reporting agency, unless the person subsequently knows or is informed by the consumer that the information is correct.”.(b) Prohibition on Sale or Transfer of Debt Caused by Identity Theft.—Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m), as amended by this Act, is amended by adding at the end the following: “(f) Prohibition on Sale or Transfer of Debt Caused by Identity Theft.—“(1) In general.—No person shall sell, transfer for consideration, or place for collection a debt that such person has been notified under section 605B has resulted from identity theft. “(2) Applicability.—The prohibitions of this subsection shall apply to all persons collecting a debt described in paragraph (1) after the date of a notification under paragraph (1).“(3) Rule of construction.—Nothing in this subsection shall be construed to prohibit—“(A) the repurchase of a debt in any case in which the assignee of the debt requires such repurchase because the debt has resulted from identity theft;“(B) the securitization of a debt or the pledging of a portfolio of debt as collateral in connection with a borrowing; or“(C) the transfer of debt as a result of a merger, acquisition, purchase and assumption transaction, or transfer of substantially all of the assets of an entity.”.