Provides credit relief for education loan borrowers who were defrauded or mislead by proprietary education institution or career education programs

(a) In general The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended by section 104, is further amended by inserting after section 605D the following new section: 605E. Education loan credit restoration for defrauded student borrowers who attend certain higher educational institutions or career education programs (a) Process for certification as a qualifying education loan borrower (1) In general A consumer may submit a request to the Bureau, along with a defraudment claim, to be certified as a qualifying education loan borrower with respect to an education loan. (2) Certification The Bureau shall certify a consumer described in paragraph (1) as a qualifying education loan borrower with respect to an education loan if the Bureau or a court of competent jurisdiction determines that the consumer has a valid defraudment claim with respect to such loan. (b) Removal of adverse information Upon receipt of a notice described in subsection (d)(5), a consumer reporting agency shall remove any adverse information relating to any education loan with respect to which a consumer is a qualifying education loan borrower from any consumer report within 45 calendar days of receipt of such notification. (c) Disclosure The Bureau shall disclose the results of a certification determination in writing to the consumer that provides a clear and concise explanation of the basis for the determination of whether such consumer is a qualifying education loan borrower with respect to an education loan and, as applicable, an explanation of the consumer’s right to have adverse information relating to such loan removed from their consumer report by a consumer reporting agency. (d) Procedures The Bureau shall— (1) establish procedures for a consumer to submit a request described in subsection (a); (2) establish procedures to efficiently review, accept, and process such a request; (3) develop ongoing outreach initiatives and education programs to inform consumers of the circumstances under which such consumer may be eligible to be certified as a qualifying education loan borrower with respect to an education loan; (4) establish procedures, including the manner, form, and content of the notice informing an educational loan holder of the prohibition on reporting any adverse information relating to an education loan with respect to which a consumer is a qualifying education loan borrower; and (5) establish procedures, including the manner, form, and content of the notice informing a consumer reporting agency of the obligation to remove any adverse information as described in subsection (c). (e) Standardized reporting codes A consumer reporting agency shall develop standardized reporting codes for use by education loan holders to identify and report a qualifying education loan borrower’s status of a request to remove any adverse information relating to any education loan with respect to which such consumer is a qualifying education loan borrower. A consumer report in which a person furnishes such codes shall be deemed to comply with the requirements for accuracy and completeness required under sections 623(a)(1) and 630. Such codes shall not appear on any report provided to a third party, and shall be removed from the consumer’s credit report upon the successful restoration of the consumer’s credit under this section. (f) Defraudment claim defined For purposes of this section, the term defraudment claim means a claim made with respect to a consumer who is a borrower of an education loan with respect to a proprietary educational institution or career education program in which the consumer alleges that— (1) the proprietary educational institution or career education program— (A) engaged in an unfair, deceptive, or abusive act or practice, or a fraudulent, discriminatory, or illegal activity— (i) as defined by State law of the State in which the proprietary educational institution or career education program is headquartered or maintains or maintained significant operations; or (ii) under Federal law; (B) is the subject of an enforcement order, a settlement agreement, a memorandum of understanding, a suspension of tuition assistance, or any other action relating to an unfair, deceptive, or abusive act or practice that is between the proprietary educational institution or career education program and an agency or department of a Federal, State, or local government; or (C) misrepresented facts to students or accrediting agencies or associations about graduation or gainful employment rates in recognized occupations or failed to provide the coursework necessary for students to successfully obtain a professional certification or degree from the proprietary educational institution or career education program; or (2) the consumer has submitted a valid defense to repayment claim with respect to such loan, as determined by the Secretary of Education.. (b) Table of contents amendment The table of contents of the Fair Credit Reporting Act is amended by inserting after the item relating to section 605D, as added by section 104 of this Act, the following new item: 605E. Education loan credit restoration for defrauded student borrowers who attend certain proprietary educational institution or career education programs..