Senator Shelby Proposes Extending FCRA’s State Preemption Provisions
Senator Richard Shelby (R-AL) has drafted a bill that would prevent federal provisions on collecting and using consumer data to be preempted by state laws, according to reports. But the bill does not preclude setting federal standards that are as stringent as those enacted by states, if not more so.
Currently, the Fair Credit Reporting Act does contain prohibitions on states’ rights to enact laws that supercede federal standards. But these provisions are set to expire on Jan. 1. In late April, California Governor Gray Davis signed legislation into law that changes opt-out permission mechanisms to opt-in ones.
Shelby’s proposed bill, which is supported by the banking, retail and insurance industries, is circulating within Washington for comment. The senator expects to put the finishing touches on it within the next few days.
The House of Representatives passed a similar bill, which would extend the prohibitions, on Sept. 10. The bill, HR 2622, passed by a 392-30 vote.
H.R. 2622 also gave consumers access to one free credit report per year, compelled regulators to establish procedures for investigating and correcting disputed information, required that credit card firms investigate requests for additional cards if received within 30 days of a change of address form, and streamlines the process by which consumers can report claims of identity theft.
