Prohibits treatment of credit restoration or rehabilitation as adverse information

The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended— (1) by adding at the end the following new section: 630. Prohibition of certain factors related to federal credit restoration or rehabilitation (a) Restriction on credit scoring models A credit scoring model may not— (1) take into consideration, in a manner adverse to a consumer’s credit score, any information in a consumer report concerning the consumer’s participation in credit restoration or rehabilitation under section 605D, 605E, or 605F; or (2) treat negatively, in a manner adverse to a consumer’s credit score, the absence of payment history data for an existing account, whether the account is open or closed, where the absence of such information is the result of a consumer’s participation in credit restoration or rehabilitation under section 605D, 605E, or 605F. (b) Restriction on persons obtaining consumer reports A person who obtains a consumer report may not— (1) take into consideration, in a manner adverse to a consumer, any information in a consumer report concerning the consumer’s participation in credit restoration or rehabilitation under section 605D, 605E, or 605F; or (2) treat negatively the absence of payment history data for an existing account, whether the account is open or closed, where the absence of such information is the result of a consumer’s participation in credit restoration or rehabilitation under section 605D, 605E, or 605F. (c) Prohibition related to adverse actions and risk-Based pricing decisions No person shall use information related to a consumer’s participation in credit restoration or rehabilitation under section 605D, 605E, or 605F in connection with any determination of— (1) the consumer’s eligibility or continued eligibility for an extension of credit; (2) the terms and conditions offered to a consumer regarding an extension of credit; or (3) an adverse action made for employment purposes.; and (2) in the table of contents for such Act, by adding at the end the following new item: 630. Prohibition of certain factors related to federal credit restoration or rehabilitation..