Financial Services Committee New Dems Lead the Way on Permanent Reauthorization of the Fair Credit Reporting Act with Passage of the FACT ACT;
 Financial Services New Dems Provided Initial Momentum

WASHINGTON, DC-- New Democrat Coalition members helped provide the momentum and the votes necessary for the House to approve the reauthorization of the Fair Credit Reporting Act, entitled the Fair and Accurate Credit Transactions Act (HR 2622). Eighty-six percent of New Democrats (64 of 74 voting) voted for final passage of the bill, which was approved overwhelmingly by a vote of 392 yeas - 30 neas - 1 present.

Leading the way for passage of the FACT Act were New Democrat Financial Services Committee Members Darlene Hooley (D-OR) Dennis Moore (D-KS), Joseph Crowley (D-NY), Rahm Emanuel (D-IL), Harold Ford, Jr. (D-TN), Charles Gonzalez (D-TX), Ruben Hinojosa (D-TX), Ken Lucas (D-KY), Carolyn McCarthy (D-NY), Carolyn Maloney (D-NY), Jim Matheson (D-UT) and Mike Ross (D-AR).

"New Democrats understand the ability to access credit in a fair and timely manner is a fundamental element of the success of the American financial service sector," said Congressman Joseph Crowley. "New Democrats led the charge, not only at the financial services committee but in the Democratic Caucus."

"The bill that passed so overwhelmingly balances the interest of the financial services industry and consumers seeking credit, "said Congressman Artur Davis. "The legislation improves the world's most efficient credit system by making it fair and even more convenient."

The legislation, sponsored by Financial Services Subcommittee Chair Spencer Bachus (R-AL), Reps. Darlene Hooley (D-OR), Judy Biggert (R-IL), and Dennis Moore (D-KS), would permanently extend seven expiring provisions of FCRA that they believe are essential to maintaining the integrity of our national credit system in addition to convenience and security for consumers. The bill also includes the main provisions of Hooley's identity theft legislation (HR 2035), which provides for a free annual credit report so consumers can help spot fraud themselves.

"The House's action is a victory for all consumers," said Congressman Harold Ford, Jr. "This bill gives every consumer the right to request a free credit report and a free credit score one per year. It will help consumers know when mistakes are made, which will expedite the process of correcting them."

Action on the reauthorization moved forward when Congresswoman Darlene Hooley (D-OR) spearheaded a June 11th letter to the Financial Services Committee Chairman Mike Oxley (R-OH) and Ranking Member Barney Frank (D-MA), cosigned by a dozen Financial Services Committee Democrats who are also members of the New Democrat Coalition. The letter announced the NDC members' firm commitment to extending the seven expiring provisions in the Fair Credit Reporting Act that set a national standard for the credit-granting system. The endorsement of the national standard was the first from a coalition of House members, and spurred the momentum necessary to for swift consideration of the bill in the House.

"Locally for my district in New York, passage of this legislation ensures that tourists who come to shop in our famous retail sector will be able to receive instant credit no matter how many state lines they cross on their way to the city," added Congresswoman Carolyn Maloney.

Among the legislation's key components addressing identity theft are: a change of address notification; fraud alerts; a new rule that would permit only a partial display of credit card and debit card numbers on receipts; a mandatory notification of all consumers' rights to suspected victims of identity theft; and one free credit report and score annually from each consumer reporting agency to any consumer requesting a copy.

"As a District Attorney for twelve years, I've heard terrible stories of identity theft and know how it can turn lives upside down," Congressman Dennis Moore, an original sponsor of the FACt Act said. "Victims of identity theft and credit fraud have suffered enough, and don't deserve the frustration of enduring repeated questioning-instead, they deserve our help. This bill will increase consumer protections and bring an end to the credit nightmares experienced by so many Americans."

Specifically, the legislation:

1. Empowers consumers to guard against identity theft by increasing the effectiveness of consumer initiated fraud alerts and enabling consumers to block fraudulent information in their personal credit records after filing a police report;
2. Increases consumer awareness of their rights if they believe they may be victims of fraud or identity theft;
3. Improves the accuracy of consumer credit information by discouraging the reintroduction of fraudulent information into the credit reporting system;
4. Expands consumer access to credit information to ensure accuracy by giving consumers the right to request a free credit report and credit score analysis annually;
5. Simplifies consumers' ability to limit unsolicited offers of credit;
6. Enlists financial institutions' support in fighting identity theft by requiring them to develop procedures to "red flag" identity theft, investigate certain changes in customer addresses, and truncate credit and debit card information;
7. Directs regulators to determine how to increase the prompt investigation and correction of disputed information in a consumer's credit file;
8. Removes the sunset from the expiring uniform national consumer protection standards to make them permanent.

"This legislation would not only empower consumers with protections," Congresswoman Darlene Hooley said, "it also would demand creditors and credit bureaus do their part to combat fraud."

Financial Services Committee New Dems said the following in touting the bill's passage:

"I am an original cosponsor of the FACT Act. The bill provides for a strong national credit system, preserves consumers' access to affordable credit, enhances consumer protections, and will ensure that Hispanics will continue to have access to credit. It will benefit consumers and our economy, and it will help improve financial literacy in the United States. Most importantly, this legislation will help reduce Identity theft, which is one of the fastest growing white collar crimes in the United States, especially in my state of Texas. This legislation will help the victims of identity theft regain their identity and restore their credit. It is imperative that Congress pass this legislation this session," said Congressman Rubén Hinojosa.

"Maintaining an accurate credit report is vital to everyone who applies for a mortgage or a car loan. Consumers and the economy benefit when we work in a bipartisan way to provide protections in a balanced, common sense way as we've done with this bill," said Congressman Jim Matheson

"I am pleased that the House had taken this important step towards streamlining our credit reporting system in a way that benefits consumers and our nations' economy," said Congressman Mike Ross. I am particularly glad that the amendment my fellow Reps. Sue Kelly and Mel Watt and I offered to protect patient information on credit reports was included in the final legislation. Our amendment ensures that consumers are not unfairly penalized for being ill and are not subject to potential discrimination that may be associated with certain ailments when assessing their credit risk.

Congressman Ken Lucas stated, "The passage of H.R. 2622 shows how well the House works together when we put forth a strong bipartisan effort. This bill will give consumers full access to their credit histories, as well as strengthened ability to fix fraudulent or incorrect information, while maintaining consumer's access to affordable credit. It also increases security and privacy protections governing financial information to help stop identity theft before it happens. This bill deserved swift passage, and I hope the Senate will move quickly so these protections can become law."

"This legislation marks an important step in the right direction for consumer rights. Consumer privacy shouldn't be a liberal or conservative issue, and I so I am especially proud of the bi-partisan nature of this move to protect our nation's consumers," said Congresswoman Carolyn McCarthy.

"As I talk to my constituents, one of their top concerns is the privacy of their medical information and its unwarranted use by others," Congressman Rahm Emanuel said. "They fear their health records could be used against them when applying for a mortgage, trying to rent an apartment, or buying a car. If one of my constituents applies for a home loan, they shouldn't have to worry about the bank using their personal health history against them. My provision eliminates these concerns."

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