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S. 471 (113th): Fair Access to Credit Scores Act of 2013


The text of the bill below is as of Mar 6, 2013 (Introduced).


II

113th CONGRESS

1st Session

S. 471

IN THE SENATE OF THE UNITED STATES

March 6, 2013

(for himself,Mrs. Boxer,Mrs. Feinstein,Mr. Menendez, andMr. Lautenberg) introduced the following bill; which was read twice and referred to theCommittee on Banking, Housing, and Urban Affairs

A BILL

To amend the Fair Credit Reporting Act to require the inclusion of credit scores with free annual credit reports provided to consumers, and for other purposes.

1.

Short title

This Act may be cited as the Fair Access to Credit Scores Act of 2013 .

2.

Credit scores included in free annual disclosures

(a)

In general

Section 609 of the Fair Credit Reporting Act(15 U.S.C. 1681g)is amended—

(1)

insubsection (a)(1)

(A)

by strikingandat the end and inserting a period;

(B)

by strikingexcept that—and all that follows through(A) if theand insertingexcept that, if the; and

(C)

by strikingsubparagraph (B);

(2)

insubsection (a), by adding at the end the following:

(7)

All consumer reporting agencies described insection 603(p)shall disclose a current credit score generated using the scoring algorithm, formula, model, program or mechanism that is most frequently used to generate scores sold to creditors, subject to regulations of theBureau, along with any information in the consumer’s file at the time of the request concerning credit scores or any other risk scores or predictors relating to the consumer, if such request is made in connection with a free annual disclosure made pursuant tosection 612(a).

(8)

Such other consumer information as theBureauconsiders appropriate with respect to consumer financial education, including the information required bysubsection (f)(1), information on where the credit score of the consumer falls with respect to a range of possible credit scores, and the general factors contributing to the credit scores of consumers.

; and

(3)

insubsection (f)

(A)

by strikingUpon the requestand all that follows throughsubparagraph (A)and inserting the following:

(1)

In general

Upon request of a consumer for a credit score or a risk score, a consumer reporting agency shall supply to the consumer—

(A)

any credit score or risk score in the file of the consumer at the consumer reporting agency;

;

(B)

inparagraph (2)

(i)

by redesignatingsubparagraph (B)assubparagraph (C); and

(ii)

by strikingsubparagraph (A)and inserting the following:

(A)

Credit score

The termcredit scoremeans a numerical value or a categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default.

(B)

Risk score

The termrisk scoremeans a numerical value or a categorization derived from a statistical tool or modeling system based upon information from a consumer report for the purpose of predicting the likelihood of certain behaviors or outcomes, and includes scores used for the underwriting of insurance.

;

(C)

by strikingparagraph (6)and inserting the following:

(6)

Maintenance of credit scores

All consumer reporting agencies shall maintain in the consumer’s file credit scores or any other risk scores or predictors relating to the consumer for a period of no less than 1 year from the date on which such information is generated.

;

(D)

by strikingparagraph (7); and

(E)

inparagraph (8), by inserting before the period at the end the following:, except that a consumer reporting agency described insection 603(p)shall provide a credit score without charge to the consumer if the consumer is requesting the score in connection with a free annual disclosure made pursuant tosection 612(a) .

(b)

Inclusion in free reports

Section 612 of the Fair Credit Reporting Act(15 U.S.C. 1681j)is amended—

(1)

insubsection (a)(1)(A), by striking(w)and inserting(x); and

(2)

insubsection (g)

(A)

inparagraph (1)

(i)

by strikingfree credit reportand insertingfree or low cost credit report or credit score; and

(ii)

by insertingand free credit scoresafterfree credit reports; and

(B)

inparagraph (2)

(i)

by strikingtelevisonand insertingtelevision; and

(ii)

by insertingor free credit score, as applicable,afterfree credit report.

(c)

Technical corrections

The Fair Credit Reporting Act(15 U.S.C. 1681a et seq.)is amended—

(1)

in section 603(d)(2)(D)(15 U.S.C. 1681a(d)(2)(D)), by strikingsubsection (o) or (x)and inserting withsubsection (o) or (y);

(2)

in section 603(i)(1)(C)(15 U.S.C. 1681a(i)(1)(C)), by striking the period at the end and inserting; and;

(3)

in section 609(c)(1)(15 U.S.C. 1681g(c)(1))

(A)

in the paragraph heading, by striking Commission and inserting Bureau ;

(B)

insubparagraph (A), by strikingCommissionand inserting Bureau ;

(C)

insubparagraph (B)(vi), by strikingsection 603(w)and insertingsection 603(x); and

(D)

insubparagraph (C), by strikingCommissionand insertingBureau; and

(4)

in section 612(a)(1)(15 U.S.C. 1681j(a)(1))

(A)

insubparagraph (A), by strikingsubsections (p) and (w)and insertingsubsections (p) and (x);

(B)

insubparagraph (C)(i)

(i)

by strikingCommissionand inserting Bureau ; and

(ii)

by strikingsection 603(w)and inserting section 603(x) ;

(C)

insubparagraph (C)(iii), by strikingCommissionand inserting Bureau ; and

(D)

insubparagraph (C)(iv), by strikingsection 603(w)and inserting section 603(x) .

3.

Rulemaking

Not later than 180 days after the date of enactment of this Act, theBureau of Consumer Financial Protectionshall develop regulations establishing a mandatory disclosure format for consumer file disclosures pursuant to section 612(a)(1)(B) of the Fair Credit Reporting Act(15 U.S.C. 1681j(a)(1)(B)).

4.

Technical correction

Section 615(h)(8)(A) of the Fair Credit Reporting Act(15 U.S.C. 1681m(h)(8)(A))is amended by strikingthis sectionand insertingthis subsection.