"(6) RULEMAKING.

"(A) RULES REQUIRED.-The Commission and the Board shall jointly prescribe rules.

"(B) CONTENT.-Rules required by subparagraph (A) shall address, but are not limited to—

"(i) the form, content, time, and manner of delivery. of any notice under this subsection;

"(ii) clarification of the meaning of terms used in this subsection, including what credit terms are material, and when credit terms are materially less favorable;

"(iii) exceptions to the notice requirement under this subsection for classes of persons or transactions regarding which the agencies determine that notice would not significantly benefit consumers;

"(iv) a model notice that may be used to comply with this subsection; and

"(v) the timing of the notice required under paragraph (1), including the circumstances under which the notice must be provided after the terms offered to the consumer were set based on information from a consumer report.

"(7) COMPLIANCE.-A person shall not be liable for failure to perform the duties required by this section if, at the time of the failure, the person maintained reasonable policies and procedures to comply with this section.

"(8) ENFORCEMENT.—

"(A) NO CIVIL ACTIONS.-Sections 616 and 617 shall not apply to any failure by any person to comply with this section.

"(B) ADMINISTRATIVE ENFORCEMENT.-This section shall be enforced exclusively under section 621 by the Federal agencies and officials identified in that section.".

(b) RELATION TO STATE LAWS.-Section 625(b)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681t(b)(1)), as so designated by section 214 of this Act, is amended by adding at the end the following:

"(I) section 615(h), relating to the duties of users of consumer reports to provide notice with respect to terms in certain credit transactions;".

SEC. 312. PROCEDURES TO ENHANCE THE ACCURACY AND INTEGRITY OF INFORMATION FURNISHED ΤΟ CONSUMER

REPORTING AGENCIES.

(a) ACCURACY GUIDELINES AND REGULATIONS.-Section 623 of the Fair Credit Reporting Act (15 U.S.C. 1681s-2) is amended by adding at the end the following:

"(e) ACCURACY GUIDELINES AND REGULATIONS REQUIRED.—

"(1) GUIDELINES.-The Federal banking agencies, the National Credit Union Administration, and the Commission shall, with respect to the entities that are subject to their respective enforcement authority under section 621, and in coordination as described in paragraph (2)—

"(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

Regulations.

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) COORDINATION.-Each agency required to prescribe regulations under paragraph (1) shall consult and coordinate with each other such agency so that, to the extent possible, the regulations prescribed by each such entity are consistent and comparable with the regulations prescribed by each other such agency.

“(3) CRITERIA. In developing the guidelines required by paragraph (1)(A), the agencies described in paragraph (1) 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 assure 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.".

(b) DUTY OF FURNISHERS TO PROVIDE ACCURATE INFORMATION.-Section 623(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)(1)) is amended

(1) in subparagraph (A), by striking "knows or consciously avoids knowing that the information is inaccurate" and inserting "knows or has reasonable cause to believe that the information is inaccurate"; and

(2) by adding at the end the following:

"(D) DEFINITION.-For purposes of subparagraph (A), the term 'reasonable cause to believe that the information is inaccurate' means having specific knowledge, other than solely allegations by the consumer, that would cause a reasonable person to have substantial doubts about the accuracy of the information.".

(c) ABILITY OF CONSUMER TO DISPUTE INFORMATION DIRECTLY WITH FURNISHER.-Section 623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)), as amended by this Act, is amended by adding at the end the following:

"(8) ABILITY OF CONSUMER TO DISPUTE INFORMATION DIRECTLY WITH FURNISHER.

“(A) IN GENERAL.-The Federal banking agencies, the National Credit Union Administration, and the Commission shall jointly prescribe regulations that shall identify the circumstances under which a furnisher shall be required to reinvestigate a dispute concerning the accuracy of

information contained in a consumer report on the consumer, based on a direct request of a consumer.

"(B) CONSIDERATIONS.-In prescribing regulations under subparagraph (A), the agencies shall weigh

"(i) the benefits to consumers with the costs on furnishers and the credit reporting system;

"(ii) the impact on the overall accuracy and integrity of consumer reports of any such requirements; "(iii) whether direct contact by the consumer with the furnisher would likely result in the most expeditious resolution of any such dispute; and

"(iv) the potential impact on the credit reporting process if credit repair organizations, as defined in section 403(3), including entities that would be a credit repair organization, but for section 403(3)(B)(i), are able to circumvent the prohibition in subparagraph (G).

"(C) APPLICABILITY.-Subparagraphs (D) through (G) shall apply in any circumstance identified under the regulations promulgated under subparagraph (A).

"(D) SUBMITTING A NOTICE OF DISPUTE.-A consumer who seeks to dispute the accuracy of information shall provide a dispute notice directly to such person at the address specified by the person for such notices that"(i) identifies the specific information that is being disputed;

"(ii) explains the basis for the dispute; and

"(iii) includes includes all supporting documentation required by the furnisher to substantiate the basis of the dispute.

"(E) DUTY OF PERSON AFTER RECEIVING NOTICE OF DISPUTE. After receiving a notice of dispute from a consumer pursuant to subparagraph (D), the person that provided the information in dispute to a consumer reporting agency shall

"(i) conduct an investigation with respect to the disputed information;

"(ii) review all relevant information provided by the consumer with the notice;

"(iii) complete such person's investigation of the dispute and report the results of the investigation to the consumer before the expiration of the period under section 611(a)(1) within which a consumer reporting agency would be required to complete its action if the consumer had elected to dispute the information under that section; and

"(iv) if the investigation finds that the information reported was inaccurate, promptly notify each consumer reporting agency to which the person furnished the inaccurate information of that determination and provide to the agency any correction to that information that is necessary to make the information provided by the person accurate.

"(F) FRIVOLOUS OR IRRELEVANT DISPUTE.—

"(i) IN GENERAL.-This paragraph shall not apply if the person receiving a notice of a dispute from a

Deadline.

consumer reasonably determines that the dispute is frivolous or irrelevant, including

"(I) by reason of the failure of a consumer to provide sufficient information to investigate the disputed information; or

"(II) the submission by a consumer of a dispute that is substantially the same as a dispute previously submitted by or for the consumer, either directly to the person or through a consumer reporting agency under subsection (b), with respect to which the person has already performed the person's duties under this paragraph or subsection (b), as applicable.

"(ii) NOTICE OF DETERMINATION.-Upon making any determination under clause (i) that a dispute is frivolous or irrelevant, the person shall notify the consumer of such determination not later than 5 business days after making such determination, by mail or, if authorized by the consumer for that purpose, by any other means available to the person.

"(iii) CONTENTS OF NOTICE.-A notice under clause (ii) shall include

"(I) the reasons for the determination under clause (i); and

"(II) identification of any information required to investigate the disputed information, which may consist of a standardized form describing the general nature of such information.

"(G) EXCLUSION OF CREDIT REPAIR ORGANIZATIONS.— This paragraph shall not apply if the notice of the dispute is submitted by, is prepared on behalf of the consumer by, or is submitted on a form supplied to the consumer by, a credit repair organization, as defined in section 403(3), or an entity that would be a credit repair organization, but for section 403(3)(B)(i).".

(d) FURNISHER LIABILITY EXCEPTION.-Section 623(a)(5) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)(5)) is amended(1) by striking "A person" and inserting the following: "(A) IN GENERAL.-A person";

(2) by inserting "date of delinquency on the account, which shall be the" before "month";

(3) by inserting "on the account" before "that immediately preceded"; and

(4) by adding at the end the following:

(B) RULE OF CONSTRUCTION.-For purposes of this paragraph only, and provided that the consumer does not dispute the information, a person that furnishes information on a delinquent account that is placed for collection, charged for profit or loss, or subjected to any similar action, complies with this paragraph, if—

"(i) the person reports the same date of delinquency as that provided by the creditor to which the account was owed at the time at which the commencement of the delinquency occurred, if the creditor previously reported that date of delinquency to a consumer reporting agency;

"(ii) the creditor did not previously report the date of delinquency to a consumer reporting agency, and the person establishes and follows reasonable procedures to obtain the date of delinquency from the creditor or another reliable source and reports that date to a consumer reporting agency as the date of delinquency; or

"(iii) the creditor did not previously report the date of delinquency to a consumer reporting agency and the date of delinquency cannot be reasonably obtained as provided in clause (ii), the person establishes and follows reasonable procedures to ensure the date reported as the date of delinquency precedes the date on which the account is placed for collection, charged to profit or loss, or subjected to any similar action, and reports such date to the credit reporting agency.".

(e) LIABILITY AND ENFORCEMENT.—

(1) CIVIL LIABILITY.-Section 623 of the Fair Credit Reporting Act (15 U.S.C. 1681s-2) is amended by striking subsections (c) and (d) and inserting the following:

"(c) LIMITATION ON LIABILITY.-Except as provided in section 621(c)(1)(B), sections 616 and 617 do not apply to any violation of

"(1) subsection (a) of this section, including any regulations issued thereunder;

"(2) subsection (e) of this section, except that nothing in this paragraph shall limit, expand, or otherwise affect liability under section 616 or 617, as applicable, for violations of subsection (b) of this section; or

"(3) subsection (e) of section 615.

"(d) LIMITATION ON ENFORCEMENT.-The provisions of law described in paragraphs (1) through (3) of subsection (c) (other than with respect to the exception described in paragraph (2) of subsection (c)) shall be enforced exclusively as provided under section 621 by the Federal agencies and officials and the State officials identified in section 621.".

(2) STATE ACTIONS.-Section 621(c) of the Fair Credit Reporting Act (15 U.S.C. 1681s(c)) is amended

(A) in paragraph (1)(B)(ii), by striking "of section 623(a)" and inserting "described in any of paragraphs (1) through (3) of section 623(c)"; and

(B) in paragraph (5)—

(i) in each of subparagraphs (A) and (B), by striking "of section 623(a)(1)" each place that term appears and inserting "described in any of paragraphs (1) through (3) of section 623(c)"; and

(ii) by amending the paragraph heading to read as follows:

“(5) LIMITATIONS ON STATE ACTIONS FOR CERTAIN VIOLATIONS.-".

15 USC 1681n

(f) RULE OF CONSTRUCTION.-Nothing in this section, the amendments made by this section, or any other provision of this note. Act shall be construed to affect any liability under section 616 or 617 of the Fair Credit Reporting Act (15 U.S.C. 1681n, 16810) that existed on the day before the date of enactment of this Act.