Senate Passes FCRA

However, the legislation would place certain restrictions on information sharing among financial institution affiliates.

Specifically, financial institutions would have to offer their customers the opportunity to opt out of personal financial information sharing among affiliates for solicitation and marketing purposes. Another provision raising industry concerns mandates a study by the Federal Trade Commission on insurance industry use of credit scores and the impact on availability of credit.

Carl Parks, senior vice president of government relations with the Des Plaines, Ill.-based National Association of Independent Insurers, praised the Senate for bipartisan leadership that produced a 95-2 vote in favor of S. 1753.

While NAII member companies do not support all the provisions in their current form, Mr. Parks said, it is critical to keep the legislative process moving forward.

Drew Cantor, vice president of federal affairs for the Washington-based American Insurance Association, noted that the House previously passed an FCRA extension. While the two bills differ, he noted, both contain provisions to study credit scoring.

AIA, Mr. Cantor said, will urge the House-Senate Conference Committee that will develop a consensus bill to eliminate the credit scoring study. He added that AIA also has concerns over the restriction on affiliate information sharing.

Marliss Browder, federal affairs representative for the Indianapolis-based National Association of Independent Insurers, said she expects the conference committee to move quickly. FCRA extension, she said, is one of the most important pieces of legislation being considered in this Congress. Ms. Browder said she expects President Bush will sign a final bill before FCRA expires on Dec. 31.