The U.S. Senate passed the National Consumer Credit Reporting System Improvement Act of 2003 by a 95-2 vote on Wednesday. Among other provisions, the Act provides a national standard for consumer credit information privacy practices, one which supercedes state measures, such as the more restrictive laws enacted by California in October.
“I am sure California has a fine legislature, and I am sure their representatives try their best to represent their California constituents,” Sen. Jim Bunning (R-KY) said during debates.
“But I do not think the California Legislature represents the people of Kentucky or the other states very well. That’s not their job.”
Bunning continued, “If California wants to try to craft their own rules and work with Federal regulators, I say more power to them – but not if it puts a crimp on the national economy or start rewriting the rules for the other 49 states.”
Bunning was referring to earlier arguments, which cited the financial drain of trying to comply with myriad privacy regulations.
But the California contingent was not without its victories. One was an amendment sponsored by both California Democratic Sens., Barbara Boxer and Dianne Feinstein, which replaces a five-year expiration date for consumers who opt out of receiving marketing communications based on credit information with one that lasts as long as the consumers want not to be solicited.
The Boxer/Feinstein amendment also defines “pre-existing relationship” as meaning the same in this legislation as it does under the federal do-not-call list: Namely, within 18 months for individuals who have made a purchase, and three months for those who have made an inquiry.
The bill, S. 1753, also adds restrictions on sharing medical information between affiliates; provides greater protection to victims of identity theft; and requires that the Federal Trade Commission issue within a year regulations governing the disposal of consumer information derived from business reports in such a way that it cannot be picked out of a dumpster, for example.
An amendment requiring that Sallie Mae, the government-run student loan organization report information to all three credit bureaus was lauded, but sponsoring Sen. Russ Feingold (D-WI) withdrew it and offered to amend it to another piece of legislation, such as the Higher Education Act.
The bill is now scheduled to be reconciled with House of Representatives legislation passed in September.
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