President George W. Bush signed the Fair and Accurate Credit Transactions Act of 2003 into law yesterday.
HR2622, sponsored by House Financial Institutions Subcommittee Chairman Spencer Bachus, R-Ala., permanently extends the Fair Credit Reporting Act’s preemption of state laws on credit reporting, which was set to expire Dec. 31.
“It’s important to the consumer and crucial to the economy,” Jim Conway, Direct Marketing Association vice president of government affairs, told Direct in September. “We’ve seen that if there was no pre-emption and different state requirements, the cost of credit could go up two percentage points.”
The National Retail Federation was also in favor of the legislation.
“Without this bill, credit would have become harder to obtain, interest rates would have gone up and routine services like instant credit and immediate discounts would have become difficult if not impossible to offer,” said NRF president and CEO Tracy Mullin in a statement.
The legislation also includes provisions allowing consumers to get free copies of their credit report and credit score each year. Businesses will also be required to black out Social Security, debit card and credit card numbers on receipts.
“So many decisions like buying a home or financing a car, or owning a small business are made easier by good credit,” said President Bush yesterday. “[This bill] will help make sure that hardworking, law-abiding citizens are treated fairly when they apply for credit.”
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