FCRA Heads to Full Senate With State Pre-Emption Intact

Share this article:
The Fair Credit Reporting Act is set to go before the U.S. Senate for a vote as early as next week with a change that would permanently pre-empt state laws regarding credit data.


The revised bill was unanimously approved in the Senate Banking Committee on Sept. 23 with the pre-emption in place as well as several added safeguards against identity theft such as the availability of free annual credit reports for all consumers.


The pre-emption provision, set to expire Jan. 1, prevents state and local governments from enacting stronger protections for credit data.


The FCRA passed Sept. 10 in the House of Representatives with a 392-30 vote.


If the full Senate upholds the pre-emption provision it would be the final straw for a piece of California privacy legislation that was signed into law by Gov. Gray Davis on Aug. 27. The California law would mandate opt-in consent for the sharing of financial data and would take effect July 1, 2004, if the FCRA pre-emption were not extended.


Davis expressed his disappointment and urged Congress to uphold the California law in a statement yesterday.


The California legislation S.B. 1 was authored by state Sen. Jackie Speier and passed Aug. 19 after amendments were made and several financial institutions backed down in their opposition to avoid a stricter March ballot initiative.


This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization. Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions