[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6370 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 6370
To amend the Fair Credit Reporting Act to provide for disaster
protection for workers' credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 23, 2020
Mr. Sherman introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Fair Credit Reporting Act to provide for disaster
protection for workers' credit.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Disaster Protection for Workers'
Credit Act''.
SEC. 2. PURPOSE.
The purpose of this Act, and the amendments made by this Act, is to
protect consumers' credit from negative impacts as a result of
financial hardship due to the coronavirus disease (COVID-19) outbreak
and future major disasters.
SEC. 3. REPORTING OF INFORMATION DURING MAJOR DISASTERS.
(a) In General.--The Fair Credit Reporting Act is amended by
inserting after section 605B the following:
``Sec. 605C. Reporting of information during major disasters
``(a) Definitions.--In this section:
``(1) COVID-19 emergency period.--The term `COVID-19
emergency period' means the period beginning on the date of
enactment of this section and ending on the later of--
``(A) 120 days after the date of enactment of this
section; or
``(B) 120 days after the date of termination by the
Federal Emergency Management Administration of the
emergency declared on March 13, 2020, by the President
under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 4121 et seq.)
relating to the Coronavirus Disease 2019 (COVID-19)
pandemic.
``(2) Covered major disaster period.--The term `covered
major disaster period' means--
``(A) the period beginning on the date on which a
major disaster is declared by the President under
section 401 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5170), under
which assistance is authorized under section 408 of
such Act (42 U.S.C. 5174), and ending on the date that
is 120 days after the end of the incident period
designated in such declaration; or
``(B) the period ending 120 days after the date of
termination by the Federal Emergency Management
Administration of the emergency declared on March 13,
2020, by the President under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
4121 et seq.) relating to the Coronavirus Disease 2019
(COVID-19) pandemic.
``(3) Major disaster.--The term `major disaster' means a
major disaster declared by the President under section 401 of
the Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5170), under which assistance is authorized
under section 408 of such Act (42 U.S.C. 5174).
``(b) Moratorium on Furnishing Adverse Information During COVID-19
Emergency Period.--No person may furnish any adverse item of
information (except information related to a felony criminal
conviction) relating to a consumer that was the result of any action or
inaction that occurred during the COVID-19 emergency period.
``(c) Moratorium on Furnishing Adverse Information During Covered
Major Disaster Period.--No person may furnish any adverse item of
information (except information related to a felony criminal
conviction) relating to a consumer that was the result of any action or
inaction that occurred during a covered major disaster period if the
consumer is a resident of the affected area covered by a declaration
made by the President under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), under
which assistance is authorized under section 408 of such Act (42 U.S.C.
5174).
``(d) Information Excluded From Consumer Reports.--In addition to
the information described in section 605(a), no consumer reporting
agency may make any consumer report containing an adverse item of
information (except information related to a felony criminal
conviction) reported relating to a consumer that was the result of any
action or inaction that occurred during the COVID-19 emergency period
or a covered major disaster period, and as applicable under subsection
(f)(3), for 270 days after the expiration of the applicable period.
``(e) Summary of Rights.--Not later than 60 days after the date of
enactment of this subsection, the Bureau shall update the model summary
of rights under section 609(c)(1) to include a description of the right
of a consumer to--
``(1) request the deletion of adverse items of information
under subsection (f); and
``(2) request a consumer report or score, without charge to
the consumer, under subsection (g).
``(f) Deletion of Adverse Items of Information Resulting From the
Coronavirus Disease (COVID-19) Outbreak and Major Disasters.--
``(1) Reporting.--
``(A) In general.--Not later than 60 days after the
date of enactment of this subsection, the Bureau shall
create a website for consumers to report, under penalty
of perjury, economic hardship as a result of the
coronavirus disease (COVID-19) outbreak or a major
disaster (if the consumer is a resident of the affected
area covered by such major disaster) for the purpose of
extending credit report protection for an additional
270 days after the end of the COVID-19 emergency period
or covered major disaster period, as applicable.
``(B) Documentation.--The Bureau shall--
``(i) not require any documentation from a
consumer to substantiate the economic hardship;
and
``(ii) provide notice to the consumer that
a report under subparagraph (A) is under
penalty of perjury.
``(C) Reporting period.--A consumer may report
economic hardship under subparagraph (A) during the
COVID-19 emergency period or a covered major disaster
period, as applicable, and for 60 days thereafter.
``(2) Database.--The Bureau shall establish and maintain a
secure database that--
``(A) is accessible to each consumer reporting
agency described in section 603(p) and nationwide
specialty consumer reporting agency for purposes of
fulfilling their duties under paragraph (3) to check
and automatically delete any adverse item of
information (except information related to a felony
criminal conviction) reported that occurred during the
COVID-19 emergency period or a covered major disaster
period with respect to a consumer; and
``(B) contains the information reported under
paragraph (1).
``(3) Deletion of adverse items of information by
nationwide consumer reporting and nationwide specialty consumer
reporting agencies.--
``(A) In general.--Each consumer reporting agency
described in section 603(p) and each nationwide
specialty consumer reporting agency shall, using the
information contained in the database established under
paragraph (2), delete from the file of each consumer
named in the database each adverse item of information
(except information related to a felony criminal
conviction) that was a result of an action or inaction
that occurred during the COVID-19 emergency period or a
covered major disaster period up to 270 days following
the end of the such period.
``(B) Timeline.--Each consumer reporting agency
described in section 603(p) and each nationwide
specialty consumer reporting agency shall check the
database at least weekly and delete adverse items of
information as soon as practicable after information
that is reported under paragraph (1) appears in the
database established under paragraph (2).
``(4) Request for deletion of adverse items of
information.--
``(A) In general.--A consumer who has filed a
report of economic hardship with the Bureau may submit
a request, without charge to the consumer, to a
consumer reporting agency to delete from the consumer's
file an adverse item of information (except information
related to a felony criminal conviction) that was a
result of an action or inaction that occurred during
the COVID-19 emergency period or a covered major
disaster period up to 270 days following the end of the
such period.
``(B) Timing.--A consumer may submit a request
under subparagraph (A), not later than 270-day period
described in that subparagraph.
``(C) Removal and notification.--Upon receiving a
request under this paragraph to delete an adverse item
of information, a consumer reporting agency shall--
``(i) delete the adverse item of
information (except information related to a
felony criminal conviction) from the consumer's
file; and
``(ii) notify the consumer and the
furnisher of the adverse item of information of
the deletion.
``(g) Free Credit Report and Scores.--
``(1) In general.--During the COVID-19 emergency period or
a covered major disaster period and ending 12 months after the
expiration of the COVID-19 emergency period or covered major
disaster period, as applicable, each consumer reporting agency
as described under 603(p) and nationwide specialty consumer
reporting agency shall make all disclosures described under
section 609 upon request by a consumer, by mail or online,
without charge to the consumer and without limitation as to the
number of requests. A consumer reporting agency shall also
supply a consumer, upon request and without charge, with a
credit score that--
``(A) is derived from a credit scoring model that
is widely distributed to users by the consumer
reporting agency for the purpose of any extension of
credit or other transaction designated by the consumer
who is requesting the credit score; or
``(B) is widely distributed to lenders of common
consumer loan products and predicts the future credit
behavior of the consumer.
``(2) Timing.--A file disclosure or credit score under
paragraph (1) shall be provided to the consumer not later
than--
``(A) 7 days after the date on which the request is
received if the request is made by mail; and
``(B) not later than 15 minutes if the request is
made online.
``(3) Additional reports.--A file disclosure provided under
paragraph (1) shall be in addition to any disclosure requested
by the consumer under section 612(a).
``(4) Prohibition.--A consumer reporting agency that
receives a request under paragraph (1) may not request or
require any documentation from the consumer that demonstrates
that the consumer was impacted by the coronavirus disease
(COVID-19) outbreak or a major disaster (except to verify that
the consumer resides in an area covered by the major disaster)
as a condition of receiving the file disclosure or score.
``(h) Posting of Rights.--Not later than 30 days after the date of
enactment of this section, each consumer reporting agency shall
prominently post and maintain a direct link on the homepage of the
public website of the consumer reporting agency information relating to
the right of consumers to--
``(1) request the deletion of adverse items of information
(except information related to a felony criminal conviction)
under subsection (f); and
``(2) request consumer file disclosures and scores, without
charge to the consumer, under subsection (g).
``(i) Ban on Reporting Medical Debt Information Related to COVID-19
or a Major Disaster.--
``(1) Furnishing ban.--No person shall furnish adverse
information to a consumer reporting agency related to medical
debt if such medical debt is with respect to medical expenses
related to treatments arising from COVID-19 or a major disaster
(whether or not the expenses were incurred during the COVID-19
emergency period or covered major disaster period).
``(2) Consumer report ban.--No consumer reporting agency
may made a consumer report containing adverse information
related to medical debt if such medical debt is with respect to
medical expenses related to treatments arising from COVID-19 or
a major disaster (whether or not the expenses were incurred
during the COVID-19 emergency period or covered major disaster
period).
``(j) Credit Scoring Models.--A person that creates and implements
credit scoring models may not treat the absence, omission, or deletion
of any information pursuant to this section as a negative factor or
negative value in credit scoring models created or implemented by such
person.''.
(b) Technical and Conforming Amendment.--The table of contents for
the Fair Credit Reporting Act is amended by inserting after the item
relating to section 605B the following:
``605C. Reporting of information during major disasters.''.
SEC. 4. LIMITATIONS ON NEW CREDIT SCORING MODELS DURING THE COVID-19
EMERGENCY AND MAJOR DISASTERS.
The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended--
(1) by adding at the end the following:
``Sec. 630. Limitations on new credit scoring models during the COVID-
19 emergency and major disasters
``With respect to a person that creates and implements credit
scoring models, such person may not, during the COVID-19 emergency
period or a covered major disaster period (as such terms are defined
under section 605C), create or implement a new credit scoring model
(including a revision to an existing scoring model) if the new credit
scoring model would identify a significant percentage of consumers as
being less creditworthy when compared to the previous credit scoring
models created or implemented by such person.''; and
(2) in the table of contents for such Act, by adding at the
end the following new item:
``630. Limitations on new credit scoring models during major
disasters.''.
<all>
Disaster Protection for Workers’ Credit Act
#6370 | HR Congress #116
Policy Area: Finance and Financial Sector
Last Action: Referred to the House Committee on Financial Services. (3/23/2020)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text