My fair credit legislation also incorporates my identity theft prevention bill (HR 2035) which I've championed for the last three Congresses. The new law includes numerous new consumer protections, including:
The New Safeguards
Uniform credit standards: In 1996, Congress set uniform national standards on credit reporting. These standards set clear rules on what credit agencies could include in consumer credit reports. The new law made these standards permanent.
Safeguarding receipts: To help ward off identity theft, retailers must hide credit card and debit card information on customer receipts. Only the last five digits of a card number will be listed. As of Jan. 1, 2005, all new cash registers and point-of-sale terminals must print these safeguarded receipts. Merchants have until Dec. 4, 2006, to phase out any existing registers or terminals that print full account numbers on receipts.
New opt-out rules: Consumers will have the right to "opt-out" and block solicitations from affiliates of companies that they do business with. These new opt-out rules won't take effect until late 2004 or early 2005.
Disclosing bad credit news: Thanks to the new law, a bank will have to tell you if it reports any negative information about you to the credit bureaus. A bank will also have to tell you if it grants you credit at less favorable terms than those received by most other consumers. These provisions are scheduled to kick in on Dec. 1, 2004.
Reporting of false credit news: Any debt collector that learns that information on a consumer's credit report is fraudulent must inform the creditor that the information is false. No retailer or creditor may report credit information to credit bureaus that is known or believed to stem from fraud. These provisions are scheduled to begin in December 2004.
More power for identity-theft victims: Identity-theft victims who file police reports will be able to block fraudulent information from appearing on their credit reports.
Fraud victims will also get more help from businesses in tracking down impostors. Under the new law, an identity-theft victim will be able to obtain copies of business records that list fraudulent transactions carried out by an identity thief. These new powers for identity theft victims kick in on Dec. 1, 2004.
Beefed-up fraud alerts: A fraud alert is a statement that's placed on your credit report to alert creditors that your private financial information has been or may be compromised.
Identity-theft victims put fraud alerts on their credit files after they learn impostors are ringing up charges in their names.
Under the new law, once a credit bureau receives a fraud alert, it must take steps to ensure that the consumer and not the thief will be granted credit in the future. This extra step could be something as simple as calling the phone number listed in a consumer fraud alert whenever a new application for credit pops up. Muscled-up fraud alerts are scheduled to hit the scene in December 2004.
Special alerts for the military: Americans in the armed forces will be able to place special alerts in their credit files while they are serving overseas to help minimize their chances of becoming victims of identity theft. These alerts are scheduled to begin in December 2004.