On November 5, 2003, the U.S. Senate voted 95-2 to reauthorize the Fair Credit Reporting Act (FCRA). S. 1753 renews expiring FCRA provisions that give federal law precedence over state law with regard to the use and exchange of personal financial information. An amendment offered by California Sens. Barbara Boxer (D) and Dianne Feinstein (D) to restrict information sharing with affiliated companies was tabled by a vote of 70 to 24. The amendment would have brought federal law in line with stricter privacy standards in California law. When their amendment failed, Boxer and Feinstein became the only two senators to vote against S. 1753.

A House-Senate conference must now reconcile differences between S, 1753 and the House-passed H.R. 2622 before Congress adjourns. Senator Richard Shelby (R-Alabama), Chairman of the Senate Banking Committee, will chair the conference. He has given every indication that his version of the bill will prevail. “We believe we've got a better bill...and we are going to stay with the Senate provisions,” Shelby said. The biggest difference between the bills is Senate language that allows customers to opt-out of marketing solicitations based on information shared by affiliate institutions.

What It Means to Agents:  PIA supports reauthorization of the Fair Credit Reporting Act.