On Wednesday September 10, the House of Representatives passed H.R. 2622, the Fair and Accurate Credit Transactions Act, by a vote of 392-30.  The bill reauthorizes the Fair Credit Reporting Act, providing consumers with greater identity theft protection, establishing permanent national credit reporting standards and reauthorizes key preemption provisions of conflicting state laws.

Two days after the House passed H.R. 2622, Senate Banking Committee Chairman Richard Shelby (R-Alabama) released his draft legislation to update FCRA. While praising passage of the House bill, Shelby said he hopes to pass a Senate version with greater emphasis on consumer protection. His draft bill puts new limits on sharing information among affiliates and says nothing about preempting conflicting state laws.Shelby is said to be aiming for a September 18 vote on his bill.

The House adopted three amendments to H.R. 2622 prior to passage:

• A manager's amendment, offered by Chairman Michael Oxley (R-Ohio), would clarify that the legislation does not preempt laws it does not address, gives furnishers of credit the same rights as credit bureaus to reject frivolous or irrelevant disputes brought by consumers, and gives federal regulators the ability to establish a system for credit bureaus to distribute credit reports in a timely manner without overwhelming the system during the implementation period of the new law. The amendment was approved by voice vote.
• An amendment offered by Rep. Bob Ney (R-Ohio) would establish national standards with regard to the free credit report provisions included in the act. The amendment was approved by vote of 233-189.
• An amendment offered by Ranking Member Barney Frank (D-Massachusetts) would ensure that the free credit reporting requirements included in the legislation apply to consumer reporting agencies that maintain reports on both a nationwide and regional basis. The amendment was approved by vote of 235-186.

H.R. 2622, as passed by the House, would strike down part of a California law passed last month that was intended to give consumers the right to have their names removed from lists that banks share with their affiliates.

What it Means for Agents: PIA supports reauthorization of the Fair Credit Reporting Act (FCRA) and is working with other associations and key Members of Congress on reauthorization of the expiring FCRA provisions.

September 16, 2003