On November 5, the Senate approved, 95-2, a bill (S. 1753) to reauthorize the Fair Credit Reporting Act (P.L. 104-208).
Sponsored by Sen. Richard Shelby (R-AL), the National Consumer Credit Reporting System Improvement Act would extend the federal preemption of state credit reporting laws. The measure also would improve the use and access of consumer credit reports. S. 1753 would limit the sharing of personal consumer information. In addition, the bill would strengthen penalties against identify theft.
Of particular interest to women and their families, S. 1753 would establish a Financial Literacy and Education Commission to improve federal financial literacy and education programs in the United States. Under the measure, the commission would develop a national strategy promoting basic financial literacy and education at the state and local levels and would be responsible for disseminating public education materials. The commission also would establish a Web site and toll-free telephone number to serve as a clearinghouse of information on federal financial literacy programs. Sen. Paul Sarbanes (D-MD) and Sen. Debbie Stabenow (D-MI) have both introduced bills (S. 1470/S. 1532) with similar financial literacy provisions.
A proponent of financial literacy, Sen. Michael Enzi (R-WY) noted that the federal government “has a vast variety of financial literacy and education programs for Americans of all ages. Unfortunately, consumers have to struggle through the many federal agencies’ programs and initiatives to find the right financial literacy material for their needs. Title V of this bill will provide a one-stop-shop for consumers to reach the many, various financial literacy programs that the federal government provides. In addition, the title will help bring consistency and focus to the federal government’s overall financial literacy goals something that does not appear at this time.”
Sen. Jon Corzine (D-NJ) agreed and added, “…By providing consumers with a free credit report, and access to the information used by creditors to judge their creditworthiness, this bill equips consumers with the tools to competitively shop for sources of financing and will lead consumers to make better informed, more judicious, credit-related decisions. And, I might add, improved financial literacy will also help consumers protect themselves against identify theft.”
In September, the House approved a bill (H.R. 2622) reauthorizing the Fair Credit Reporting Act, but it did not contain the provision improving financial literacy and education.
