AMENDMENTS TO THE FAIR CREDIT REPORTING ACT AND THE FAIR AND ACCURATE CREDIT TRANSACTIONS ACT OF 2003.

SEC. 1088. AMENDMENTS TO THE FAIR CREDIT REPORTING ACT AND THE FAIR AND ACCURATE CREDIT TRANSACTIONS ACT OF 2003.(a) Fair Credit Reporting Act.—The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended—(1) in section 603 (15 U.S.C. 1681a)—(A) by redesignating subsections (w) and (x) as subsections (x) and (y), respectively; and(B) by inserting after subsection (v) the following:124 STAT. 2087 “(w) The term ‘Bureau’ means the Bureau of Consumer Financial Protection.”; and(2) except as otherwise specifically provided in this subsection—(A) by striking “Federal Trade Commission” each place that term appears and inserting “Bureau”;(B) by striking “FTC” each place that term appears and inserting “Bureau”;(C) by striking “the Commission” each place that term appears, other than sections 615(e) (15 U.S.C. 1681m(e)) and 628(a)(1) (15 U.S.C. 1681w(a)(1)), and inserting “the Bureau”; and(D) by striking “The Federal banking agencies, the National Credit Union Administration, and the Commission shall jointly” each place that term appears, other than section 615(e)(1) (15 U.S.C. 1681m(e)) and section 628(a)(1) (15 U.S.C. 1681w(a)(1)), and inserting “The Bureau shall”;(3) in section 603(k)(2) (15 U.S.C. 1681a(k)(2)), by striking “Board of Governors of the Federal Reserve System” and inserting “Bureau”;(4) in section 604(g) (15 U.S.C. 1681b(g))—(A) in paragraph (3), by striking subparagraph (C) and inserting the following:“(C) as otherwise determined to be necessary and appropriate, by regulation or order, by the Bureau or the applicable State insurance authority (with respect to any person engaged in providing insurance or annuities).”; and(B) by striking paragraph (5) and inserting the following:“(5) Regulations and effective date for paragraph (2).—“(A) Regulations required.—The Bureau may, after notice and opportunity for comment, prescribe regulations that permit transactions under paragraph (2) that are determined to be necessary and appropriate to protect legitimate operational, transactional, risk, consumer, and other needs (and which shall include permitting actions necessary for administrative verification purposes), consistent with the intent of paragraph (2) to restrict the use of medical information for inappropriate purposes.”;(5) in section 605(h)(2)(A) (15 U.S.C. 1681c(h)(2)(A)), by striking “with respect to the entities that are subject to their respective enforcement authority under section 621” and inserting “, in consultation with the Federal banking agencies, the National Credit Union Administration, and the Federal Trade Commission,”.(6) in section 611(e)(2) (15 U.S.C. 1681i(e)), by striking paragraph (2) and inserting the following:“(2) Exclusion.—Complaints received or obtained by the Bureau pursuant to its investigative authority under the Consumer Financial Protection Act of 2010 shall not be subject to paragraph (1).”;(7) in section 615(d)(2)(B) (15 U.S.C. 1681m(d)(2)(B)), by striking “the Federal banking agencies” and inserting “the Federal Trade Commission, the Federal banking agencies,”;(8) in section 615(e)(1) (15 U.S.C. 1681m(e)(1)), by striking “and the Commission” and inserting “the Federal Trade 124 STAT. 2088 Commission, the Commodity Futures Trading Commission, and the Securities and Exchange Commission”;(9) in section 615(h)(6) (15 U.S.C. 1681m(h)(6)), by striking subparagraph (A) and inserting the following:“(A) Rules required.—The Bureau shall prescribe rules to carry out this subsection.”;(10) in section 621 (15 U.S.C. 1681s)—(A) by striking subsection (a) and inserting the following:“(a) Enforcement by Federal Trade Commission.—“(1) In general.—The Federal Trade Commission shall be authorized to enforce compliance with the requirements imposed by this title under the Federal Trade Commission Act (15 U.S.C. 41 et seq.), with respect to consumer reporting agencies and all other persons subject thereto, except to the extent that enforcement of the requirements imposed under this title is specifically committed to some other Government agency under any of subparagraphs (A) through (G) of subsection (b)(1), and subject to subtitle B of the Consumer Financial Protection Act of 2010, subsection (b). For the purpose of the exercise by the Federal Trade Commission of its functions and powers under the Federal Trade Commission Act, a violation of any requirement or prohibition imposed under this title shall constitute an unfair or deceptive act or practice in commerce, in violation of section 5(a) of the Federal Trade Commission Act (15 U.S.C. 45(a)), and shall be subject to enforcement by the Federal Trade Commission under section 5(b) of that Act with respect to any consumer reporting agency or person that is subject to enforcement by the Federal Trade Commission pursuant to this subsection, irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests under the Federal Trade Commission Act. The Federal Trade Commission shall have such procedural, investigative, and enforcement powers, including the power to issue procedural rules in enforcing compliance with the requirements imposed under this title and to require the filing of reports, the production of documents, and the appearance of witnesses, as though the applicable terms and conditions of the Federal Trade Commission Act were part of this title. Any person violating any of the provisions of this title shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act as though the applicable terms and provisions of such Act are part of this title.“(2) Penalties.—“(A) Knowing violations.—Except as otherwise provided by subtitle B of the Consumer Financial Protection Act of 2010, in the event of a knowing violation, which constitutes a pattern or practice of violations of this title, the Federal Trade Commission may commence a civil action to recover a civil penalty in a district court of the United States against any person that violates this title. In such action, such person shall be liable for a civil penalty of not more than $2,500 per violation.“(B) Determining penalty amount.—In determining the amount of a civil penalty under subparagraph (A), the court shall take into account the degree of culpability, any history of such prior conduct, ability to pay, effect 124 STAT. 2089 on ability to continue to do business, and such other matters as justice may require.“(C) Limitation.—Notwithstanding paragraph (2), a court may not impose any civil penalty on a person for a violation of section 623(a)(1), unless the person has been enjoined from committing the violation, or ordered not to commit the violation, in an action or proceeding brought by or on behalf of the Federal Trade Commission, and has violated the injunction or order, and the court may not impose any civil penalty for any violation occurring before the date of the violation of the injunction or order.”;(B) by striking subsection (b) and inserting the following:“(b) Enforcement by Other Agencies.—“(1) In general.—Subject to subtitle B of the Consumer Financial Protection Act of 2010, compliance with the requirements imposed under this title with respect to consumer reporting agencies, persons who use consumer reports from such agencies, persons who furnish information to such agencies, and users of information that are subject to section 615(d) shall be enforced under—“(A) section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), by the appropriate Federal banking agency, as defined in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), with respect to—“(i) any national bank or State savings association, and any Federal branch or Federal agency of a foreign bank;“(ii) any member bank of the Federal Reserve System (other than a national bank), a branch or agency of a foreign bank (other than a Federal branch, Federal agency, or insured State branch of a foreign bank), a commercial lending company owned or controlled by a foreign bank, and any organization operating under section 25 or 25A of the Federal Reserve Act; and“(iii) any bank or Federal savings association insured by the Federal Deposit Insurance Corporation (other than a member of the Federal Reserve System) and any insured State branch of a foreign bank;“(B) the Federal Credit Union Act (12 U.S.C. 1751 et seq.), by the Administrator of the National Credit Union Administration with respect to any Federal credit union;“(C) subtitle IV of title 49, United States Code, by the Secretary of Transportation, with respect to all carriers subject to the jurisdiction of the Surface Transportation Board;“(D) the Federal Aviation Act of 1958 (49 U.S.C. App. 1301 et seq.), by the Secretary of Transportation, with respect to any air carrier or foreign air carrier subject to that Act;“(E) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.) (except as provided in section 406 of that Act), by the Secretary of Agriculture, with respect to any activities subject to that Act;124 STAT. 2090“(F) the Commodity Exchange Act, with respect to a person subject to the jurisdiction of the Commodity Futures Trading Commission;“(G) the Federal securities laws, and any other laws that are subject to the jurisdiction of the Securities and Exchange Commission, with respect to a person that is subject to the jurisdiction of the Securities and Exchange Commission; and“(H) subtitle E of the Consumer Financial Protection Act of 2010, by the Bureau, with respect to any person subject to this title.“(2) Incorporated definitions.—The terms used in paragraph (1) that are not defined in this title or otherwise defined in section 3(s) of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)) have the same meanings as in section 1(b) of the International Banking Act of 1978 (12 U.S.C. 3101).”;(C) in subsection (c)(2)—(i) by inserting “and the Federal Trade Commission” before “or the appropriate”; and(ii) by inserting “and the Federal Trade Commission” before “or appropriate” each place that term appears;(D) in subsection (c)(4), by inserting before “or the appropriate” each place that term appears the following: “, the Federal Trade Commission,”;(E) by striking subsection (e) and inserting the following:“(e) Regulatory Authority.—“(1) In general.—The Bureau shall prescribe such regulations as are necessary to carry out the purposes of this title, except with respect to sections 615(e) and 628. The Bureau may prescribe regulations as may be necessary or appropriate to administer and carry out the purposes and objectives of this title, and to prevent evasions thereof or to facilitate compliance therewith. Except as provided in section 1029(a) of the Consumer Financial Protection Act of 2010, the regulations prescribed by the Bureau under this title shall apply to any person that is subject to this title, notwithstanding the enforcement authorities granted to other agencies under this section.“(2) Deference.—Notwithstanding any power granted to any Federal agency under this title, the deference that a court affords to a Federal agency with respect to a determination made by such agency relating to the meaning or interpretation of any provision of this title that is subject to the jurisdiction of such agency shall be applied as if that agency were the only agency authorized to apply, enforce, interpret, or administer the provisions of this title The regulations prescribed by the Bureau under this title shall apply to any person that is subject to this title, notwithstanding the enforcement authorities granted to other agencies under this section.”; and(F) in subsection (f)(2), by striking “the Federal banking agencies” and insert “the Federal Trade Commission, the Federal banking agencies,”;(11) in section 623 (15 U.S.C. 1681s–2)—(A) in subsection (a)(7), by striking subparagraph (D) and inserting the following:“(D) Model disclosure.—124 STAT. 2091“(i) Duty of bureau.—The Bureau shall prescribe a brief model disclosure that a financial institution may use to comply with subparagraph (A), which shall not exceed 30 words.“(ii) Use of model not required.—No provision of this paragraph may be construed to require a financial institution to use any such model form prescribed by the Bureau.“(iii) Compliance using model.—A financial institution shall be deemed to be in compliance with subparagraph (A) if the financial institution uses any model form prescribed by the Bureau under this subparagraph, or the financial institution uses any such model form and rearranges its format.”;(B) in subsection (a)(8), by inserting “, in consultation with the Federal Trade Commission, the Federal banking agencies, and the National Credit Union Administration,” before “shall jointly”; and(C) by striking subsection (e) and inserting the following:“(e) Accuracy Guidelines and Regulations Required.—“(1) Guidelines.—The Bureau shall, with respect to persons or entities that are subject to the enforcement authority of the Bureau under section 621—“(A) establish and maintain guidelines for use by each person that furnishes information to a consumer reporting agency regarding the accuracy and integrity of the information relating to consumers that such entities furnish to consumer reporting agencies, and update such guidelines as often as necessary; and“(B) prescribe regulations requiring each person that furnishes information to a consumer reporting agency to establish reasonable policies and procedures for implementing the guidelines established pursuant to subparagraph (A).“(2) Criteria.—In developing the guidelines required by paragraph (1)(A), the Bureau shall—“(A) identify patterns, practices, and specific forms of activity that can compromise the accuracy and integrity of information furnished to consumer reporting agencies;“(B) review the methods (including technological means) used to furnish information relating to consumers to consumer reporting agencies;“(C) determine whether persons that furnish information to consumer reporting agencies maintain and enforce policies to ensure the accuracy and integrity of information furnished to consumer reporting agencies; and“(D) examine the policies and processes that persons that furnish information to consumer reporting agencies employ to conduct reinvestigations and correct inaccurate information relating to consumers that has been furnished to consumer reporting agencies.”;(12) in section 628(a)(1) (15 U.S.C. 1681w(a)(1)), by striking “Not later than” and all that follows through “Exchange Commission,” and inserting “The Federal Trade Commission, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal banking agencies, 124 STAT. 2092 and the National Credit Union Administration, with respect to the entities that are subject to their respective enforcement authority under section 621,”; and(13) in section 628(a)(3) (15 U.S.C. 1681w(a)(3)), by striking “the Federal banking agencies, the National Credit Union Administration, the Commission, and the Securities and Exchange Commission” and inserting “the agencies identified in paragraph (1)”.(b) Fair and Accurate Credit Transactions Act of 2003.—The Fair and Accurate Credit Transactions Act of 2003 (Public Law 108–159) is amended—(1) in section 112(b) (15 U.S.C. 1681c–1 note), by striking “Commission” and inserting “Bureau”;(2) in section 211(d) (15 U.S.C. 1681j note), by striking “Commission” each place that term appears and inserting “Bureau”;(3) in section 214(b) (15 U.S.C. 1681s–3 note), by striking paragraph (1) and inserting the following:“(1) In general.—Regulations to carry out section 624 of the Fair Credit Reporting Act (15 U.S.C. 1681s–3), shall be prescribed, as described in paragraph (2), by—“(A) the Commodity Futures Trading Commission, with respect to entities subject to its enforcement authorities;“(B) the Securities and Exchange Commission, with respect to entities subject to its enforcement authorities; and“(C) the Bureau, with respect to other entities subject to this Act.”; and(4) in section 214(e)(1) (15 U.S.C. 1681s–3 note), by striking “Commission” and inserting “Bureau”.