Red Flag Program Clarification Act of 2010 - Amends the Fair Credit Reporting Act, with respect to federal agency (red flag) guidelines regarding identity theft and the users of consumer reports, to define creditor to mean one that regularly and in the ordinary course of business: (1) obtains or uses consumer reports, directly or indirectly, in connection with a credit transaction; (2) furnishes information to certain consumer reporting agencies in connection with a credit transaction; or (3) advances funds to or on behalf of a person, based on the person's obligation to repay the funds or on repayment from specific property pledged by or on the person's behalf.
Includes in the definition any other type of creditor as the federal agency (banking agency, National Credit Union Administration, or the Federal Trade Commission [FTC]) having authority over that creditor may determine appropriate, if the creditor offers or maintains accounts subject to a reasonably foreseeable risk of identity theft.
Excludes from the definition of creditor, however, any creditor that advances funds on behalf of a person for expenses incidental to a service the creditor provides to that person.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6420 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 6420
To amend the Fair Credit Reporting Act with respect to the
applicability of identity theft guidelines to creditors.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 17, 2010
Mr. Adler of New Jersey (for himself, Mr. Broun of Georgia, and Mr.
Simpson) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Fair Credit Reporting Act with respect to the
applicability of identity theft guidelines to creditors.
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 ``Red Flag Program Clarification Act
of 2010''.
SEC. 2. SCOPE OF CERTAIN CREDITOR REQUIREMENTS.
(a) Amendment to FCRA.--Section 615(e) of the Fair Credit Reporting
Act (15 U.S.C. 1681m(e)) is amended by adding at the end the following:
``(4) Definitions.--As used in this subsection, the term
`creditor'--
``(A) means a creditor, as defined in section 702
of the Equal Credit Opportunity Act (15 U.S.C. 1691a),
that regularly and in the ordinary course of business--
``(i) obtains or uses consumer reports,
directly or indirectly, in connection with a
credit transaction;
``(ii) furnishes information to consumer
reporting agencies, as described in section
623, in connection with a credit transaction;
or
``(iii) advances funds to or on behalf of a
person, based on an obligation of the person to
repay the funds or repayable from specific
property pledged by or on behalf of the person;
``(B) does not include a creditor described in
subparagraph (A)(iii) that advances funds on behalf of
a person for expenses incidental to a service provided
by the creditor to that person; and
``(C) includes any other type of creditor, as
defined in that section 702, as the agency described in
paragraph (1) having authority over that creditor may
determine appropriate by rule promulgated by that
agency, based on a determination that such creditor
offers or maintains accounts that are subject to a
reasonably foreseeable risk of identity theft.''.
(b) Effective Date.--The amendment made by this section shall
become effective on the date of enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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