Hr 2622—Fair and Accurate Credit
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H.R. 2622—FAIR AND ACCURATE CREDIT TRANSACTIONS ACT OF 2003 HEARING BEFORE THE COMMITTEE ON FINANCIAL SERVICES U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED EIGHTH CONGRESS FIRST SESSION JULY 9, 2003 Printed for the use of the Committee on Financial Services Serial No. 108–47 ( U.S. GOVERNMENT PRINTING OFFICE 92–230 PDF WASHINGTON : 2003 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 0ct 09 2002 12:51 Mar 05, 2004 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 G:\DOCS\92230.TXT FIN1 PsN: MICAH HOUSE COMMITTEE ON FINANCIAL SERVICES MICHAEL G. OXLEY, Ohio, Chairman JAMES A. LEACH, Iowa BARNEY FRANK, Massachusetts DOUG BEREUTER, Nebraska PAUL E. KANJORSKI, Pennsylvania RICHARD H. BAKER, Louisiana MAXINE WATERS, California SPENCER BACHUS, Alabama CAROLYN B. MALONEY, New York MICHAEL N. CASTLE, Delaware LUIS V. GUTIERREZ, Illinois PETER T. KING, New York NYDIA M. VELA´ ZQUEZ, New York EDWARD R. ROYCE, California MELVIN L. WATT, North Carolina FRANK D. LUCAS, Oklahoma GARY L. ACKERMAN, New York ROBERT W. NEY, Ohio DARLENE HOOLEY, Oregon SUE W. KELLY, New York, Vice Chair JULIA CARSON, Indiana RON PAUL, Texas BRAD SHERMAN, California PAUL E. GILLMOR, Ohio GREGORY W. MEEKS, New York JIM RYUN, Kansas BARBARA LEE, California STEVEN C. LATOURETTE, Ohio JAY INSLEE, Washington DONALD A. MANZULLO, Illinois DENNIS MOORE, Kansas WALTER B. JONES, JR., North Carolina CHARLES A. GONZALEZ, Texas DOUG OSE, California MICHAEL E. CAPUANO, Massachusetts JUDY BIGGERT, Illinois HAROLD E. FORD, JR., Tennessee MARK GREEN, Wisconsin RUBE´ N HINOJOSA, Texas PATRICK J. TOOMEY, Pennsylvania KEN LUCAS, Kentucky CHRISTOPHER SHAYS, Connecticut JOSEPH CROWLEY, New York JOHN B. SHADEGG, Arizona WM. LACY CLAY, Missouri VITO FOSSELLA, New York STEVE ISRAEL, New York GARY G. MILLER, California MIKE ROSS, Arkansas MELISSA A. HART, Pennsylvania CAROLYN MCCARTHY, New York SHELLEY MOORE CAPITO, West Virginia JOE BACA, California PATRICK J. TIBERI, Ohio JIM MATHESON, Utah MARK R. KENNEDY, Minnesota STEPHEN F. LYNCH, Massachusetts TOM FEENEY, Florida ARTUR DAVIS, Alabama JEB HENSARLING, Texas RAHM EMANUEL, Illinois SCOTT GARRETT, New Jersey BRAD MILLER, North Carolina TIM MURPHY, Pennsylvania DAVID SCOTT, Georgia GINNY BROWN-WAITE, Florida J. GRESHAM BARRETT, South Carolina BERNARD SANDERS, Vermont KATHERINE HARRIS, Florida RICK RENZI, Arizona ROBERT U. FOSTER, III, Staff Director (II) VerDate 0ct 09 2002 12:51 Mar 05, 2004 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 G:\DOCS\92230.TXT FIN1 PsN: MICAH C O N T E N T S Page Hearing held on: July 9, 2003 ....................................................................................................... 1 Appendix: July 9, 2003 ....................................................................................................... 93 WITNESSES WEDNESDAY, JULY 9, 2003 Belew, Joe, President, Consumer Bankers Association ........................................ 75 Bell, Kayce, Chief Operating Officer, Alabama Credit Union, on behalf of the Credit Union National Association .............................................................. 77 Brobeck, Stephen, Executive Director, Consumer Federation of America .......... 37 Dugan, John C., Partner, Covington & Burling, on behalf of the Financial Services Coordinating Council ............................................................................ 38 Duncan, Mallory, Senior Vice President, General Counsel, National Retail Federation ............................................................................................................. 30 Fischer, L. Richard, Visa U.S.A. ............................................................................. 84 Hoofnagle, Chris, Deputy Counsel, Electronic Privacy Information Center ....... 82 McEneney, Michael F., Partner, Sidley Austin Brown & Wood LLP, on behalf of the U.S. Chamber of Commerce ..................................................................... 33 Muris, Hon. Timothy J., Chairman, Federal Trade Commission ........................ 10 Pratt, Stuart K., President, Consumer Data Industry Association ..................... 41 Shelton, Hilary, Director, NAACP, Washington Bureau ...................................... 78 Snow, Hon. John W., Secretary, Department of the Treasury ............................ 8 Spriggs, William E., Executive Director, National Urban League Institute for Opportunity and Equality .............................................................................. 34 Taylor, D. Russell, Chairman, America’s Community Bankers ........................... 81 APPENDIX Prepared statements: Oxley, Hon. Michael G. .................................................................................... 94 Clay, Hon. Wm. Lacy ....................................................................................... 96 Emanuel, Hon. Rahm ....................................................................................... 97 Harris, Hon. Katherine .................................................................................... 99 Israel, Hon. Steve ............................................................................................. 100 Belew, Joe ......................................................................................................... 102 Bell, Kayce ........................................................................................................ 111 Brobeck, Stephen .............................................................................................. 119 Dugan, John C. ................................................................................................. 135 Duncan, Mallory (with attachments) .............................................................. 148 Fischer, L. Richard (with attachments) .......................................................... 157 Hoofnagle, Chris Jay (with attachments) ....................................................... 175 McEneney, Michael F. ...................................................................................... 195 Muris, Hon. Timothy J. .................................................................................... 207 Pratt, Stuart K. ................................................................................................ 224 Shelton, Hilary .................................................................................................. 238 Snow, Hon. John W. ......................................................................................... 243 Spriggs, William E. .......................................................................................... 248 Taylor, D. Russell ............................................................................................. 253 ADDITIONAL MATERIAL SUBMITTED FOR THE RECORD American Financial Services Association, prepared statement ........................... 260 (III) VerDate 0ct 09 2002 12:51 Mar 05, 2004 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 G:\DOCS\92230.TXT FIN1 PsN: MICAH VerDate 0ct 09 2002 12:51 Mar 05, 2004 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 G:\DOCS\92230.TXT FIN1 PsN: MICAH H.R. 2622—FAIR AND ACCURATE CREDIT TRANSACTIONS ACT OF 2003 Wednesday, July 9, 2003 U.S. HOUSE OF REPRESENTATIVES, COMMITTEE ON FINANCIAL SERVICES, Washington, D.C. The Committee met, pursuant to call, at 10:14 a.m., in Room 2128, Rayburn House Office Building, Hon. Michael Oxley [Chair- man of the Committee] presiding. Present: Representatives Oxley, Leach, Bachus, Royce, Lucas of Oklahoma, Kelly, Gillmor, Ryun, Ose, Biggert, Shays, Miller of California, Hart, Capito, Tiberi, Kennedy, Hensarling, Murphy, Barrett, Harris, Renzi, Frank, Waters, Sanders, Maloney, Velaz- quez, Ackerman, Hooley, Carson, Sherman, Lee, Inslee, Moore, Capuano, Hinojosa, Lucas of Kentucky, Clay, Israel, McCarthy, Baca, Matheson, Miller of North Carolina, Emanuel, Scott and Davis. The CHAIRMAN. [Presiding.] The Committee will come to order. The Committee meets today for a legislative hearing on H.R. 2622, the Fair and Accurate Credit Transactions Act of 2003, the FACT Act, comprehensive legislation to reauthorize certain key provisions of the Fair Credit Reporting Act and make other needed reforms to our national credit reporting system. The bill was introduced just prior to the 4th of July recess by a bipartisan coalition of 32 members of this Committee, 18 Repub- licans and 14 Democrats, led by the Chairman of the Financial In- stitution Subcommittee, the hardworking Mr. Bachus, Ms. Hooley, Mrs. Biggert and Mr. Moore. The FACT Act grew out of an exhaustive series of hearings that Chairman Bachus’s subcommittee has held on the FCRA over the past several months. Those hearings, which featured testimony from some 75 witnesses, representing every conceivable perspective on the FCRA, has laid the groundwork for this Committee to act, hopefully later this month, to preserve the benefits of the national credit reporting system and give consumers important new rights in the process. I commend Chairman Bachus and all of the members of the Fi- nancial Institutions Subcommittee for their diligent and very thor- ough approach to this complex issue. The legislation that the Com- mittee considers today is a testament to their months of hard work. The subcommittee’s hearings have, in my view, established a compelling case for reauthorizing the FCRA’s uniform national standards. As one