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Consumer Notice

SEC. 217. REQUIREMENT TO DISCLOSE COMMUNICATIONS TO A CONSUMER REPORTING AGENCY.

(a) IN GENERAL.—Section 623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s–2(a)) as amended by this Act, is amended by inserting after paragraph (6), the following new paragraph:

‘‘(7) NEGATIVE INFORMATION.

‘‘(A) NOTICE TO CONSUMER REQUIRED.

‘‘(i) IN GENERAL: If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 603(p) furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer.

‘‘(ii) NOTICE EFFECTIVE FOR SUBSEQUENT SUBMISSIONS. After providing such notice, the financial institution may submit additional negative information to a consumer reporting agency described in section 603(p) with respect to the same transaction, extension of credit, account, or customer without providing additional notice to the customer.

‘‘(B) TIME OF NOTICE.

‘‘(i) IN GENERAL.—The notice required under subparagraph (A) shall be provided to the customer prior to, or no later than 30 days after, furnishing the negative information to a consumer reporting agency described in section 603(p).

‘(ii) COORDINATION WITH NEW ACCOUNT DISCLOSURES.— If the notice is provided to the customer prior to furnishing the negative information to a consumer reporting agency, the notice may not be included in the initial disclosures provided under section 127(a) of the Truth in Lending Act.

‘‘(C) COORDINATION WITH OTHER DISCLOSURES.—The notice required under subparagraph (A)— ‘‘(i) may be included on or with any notice of default, any billing statement, or any other materials provided to the customer; and ‘‘(ii) must be clear and conspicuous.