To amend the Fair Credit Reporting Act to assure the completeness and accuracy of consumer information maintained by credit reporting agencies, to better inform consumers of their rights under the Act, and to improve enforcement, and for other purposes.

TABLE OF CONTENTS:

Title I: Amendments to Fair Credit Reporting Act

Title II: Credit Repair Organizations

Title I: Amendments to Fair Credit Reporting Act - Consumer Reporting Reform Act of 1993 - Amends the Fair Credit Reporting Act (the Act) to specify that the term "credit transaction which is not initiated by the consumer" does not include use of a consumer report (CR) by a person with which the consumer has an account for purposes of reviewing or collecting the account.

Allows the furnishing of a CR for: (1) a legitimate business need in connection with a business transaction that is initiated by the consumer; and (2) employment purposes only if certain disclosures are made, the consumer consents, and the information will not be used in violation of any Federal or State equal employment opportunity law or regulation.

Prohibits: (1) using or obtaining information from a CR unless it is obtained for an authorized purpose and the purpose is certified under certain provisions of the Act; (2) a consumer reporting agency (CRA) from prohibiting a CR user from disclosing the CR to the consumer if adverse action against the consumer is contemplated; and (3) the furnishing of a CR for use in direct marketing not initiated by the consumer.

Requires CRAs to maintain a notification system, including a toll-free telephone number, which permits any consumer to elect to be excluded from lists provided in connection with solicitations of credit not initiated by the consumer.

Removes exceptions to prohibitions on reporting obsolete information. (Current law prohibits reporting information which is over a specified number of years old, except for credit transactions, life insurance, or employment involving amounts over specified limits.)

Regulates the beginning of the seven-year reporting period for certain types of information.

Requires CRAs to: (1) include information received that an account was closed by a consumer in good standing when when closed by the consumer with no outstanding balance; and (2) notify regular information suppliers of the suppliers' responsibilities under the Act.

Prohibits a person who procures a CR from reselling the information unless the identity of the end user and the purpose is disclosed to the CRA.

Requires a CRA to: (1) disclose to a consumer all information in the consumer's file, certain information about the recipients of a CR, the permissible purpose for which each recipient procured a CR, a record of inquiries in the last six months that identified the consumer in connection with a credit transaction which was not initiated by the consumer, and, with any such disclosures, a summary of the consumer's rights under the Act; and (2) unless the dispute is frivolous or irrelevant to reinvestigate disputed information free of charge or delete the item from the file, to notify the information furnisher, to delete inaccurate, incomplete, or unverifiable information, and to notify the consumer of the results of the reinvestigation.

Regulates charges by CRAs for certain disclosures.

Requires any person who takes an adverse action with respect to a consumer in connection with a transaction initiated by the consumer or an employment determination to notify the consumer, disclose the identity of the CRA furnishing the report, advise the consumer of certain rights, and give certain information on any credit scoring system or other predictor of credit wothiness used.

Subjects any person (currently, any CRA or user of information) to civil liability for willful or negligent noncompliance with the Act.

Sets forth: (1) duties of furnishers of information to CRAs, including a prohibition on furnishing information which the furnisher has reasonable cause to believe is incomplete or inaccurate; and (2) provisions regarding investigative consumer reports. Increases criminal penalties for obtaining information under false pretenses.

Authorizes State civil actions to enforce the Act, subject to a specified limitation.

Requires each CRA which compiles and maintains consumer reports nationwide to maintain a toll-free telephone number.

Title II: Credit Repair Organizations - Amends the Consumer Credit Protection Act to provide that specified provisions of that Act may be cited as the Credit Repair Organizations Act.

Prohibits: (1) advising any consumer to make an untrue or misleading statement, or to alter the consumer's identification to prevent the display of the consumer's credit record; (2) other fraud or deception; and (3) a credit repair organization (CRO) from charging or receiving valuable consideration for any service before such service is fully performed.

Specifies a statement which a CRO must provide to consumers before an agreement is executed regarding the consumer, the CRO, and related rights, powers, and obligations. Requires written, signed contracts covering specified matters in order for a CRO to provide services. Allows a consumer to cancel a contract with a CRO within three business days of making the contract.

Declares void any consumer waiver of any protection under this title. Makes an attempt to obtain a waiver a violation of this title. Voids any contract not in compliance with this title.

Provides for civil liability for failing to comply with this title, including allowing punitive damages and class actions.

Requires enforcement of this title under the Federal Trade Commission Act (FTCA) by the Federal Trade Commission (FTC). Makes: (1) a violation of this title an unfair or deceptive act or practice in violation of specified provisions of the FTCA; and (2) all functions and powers of the FTC available for enforcement of this title. Allows State enforcement through Federal or State courts.