To amend the Electronic Fund Transfer Act to require truncation of account numbers on transaction receipts, and for other purposes.

October 7, 2003

Mr. FRELINGHUYSEN introduced the following bill; which was referred to the Committee on Financial Services

To amend the Electronic Fund Transfer Act to require truncation of account numbers on transaction receipts, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Consumer Credit and Identity Protection Act of 2001'.

SEC. 2. TRUNCATION OF ACCOUNT NUMBERS ON TRANSACTION RECEIPTS.

(a) IN GENERAL- Section 906 of the Electronic Fund Transfer Act (15 U.S.C. 1693d) is amended by adding at the end the following new subsection:

`(g) TRUNCATION OF ACCOUNT NUMBER ON TRANSACTION RECEIPTS- In identifying a consumer's account in the documentation required under subsection (a) with respect to an electronic fund transfer initiated by the consumer at an electronic terminal, only the last 4 digits of such account number may be printed on the document.'.

(b) Effective Date-

(1) IN GENERAL- The amendment made by subsection (a) shall take effect on January 1, 2003.

(2) TEMPORARY WAIVERS- The Board of Governors of the Federal Reserve System may, by regulation or order, waive the applicability of the amendment made by subsection (a) for up to 1 additional year with respect to electronic terminals first put into operation before the date of the enactment of this Act, or any type or subset of such electronic terminals, if the Board determines that retrofitting any such existing terminal to comply with the amendment by the effective date is unduly burdensome.

SEC. 3. FEDERAL RESERVE BOARD STUDY ON TRUNCATION OF CREDIT AND DEBIT CARD ACCOUNT NUMBERS IN ALL CONSUMER TRANSACTIONS.

(a) STUDY REQUIRED- The Board of Governors of the Federal Reserve System shall conduct a study on--

(1) the feasibility of--

(A) permitting only an electronic terminal to be used in any transaction involving the use of a consumer's credit card or debit card;

(B) requiring the use of a code or other unique form of identification (other than a signature) to access the consumer's account for purposes of effectuating any transaction involving any such credit or debit card; and

(C) requiring the truncation of the consumer's account number on any receipt provided in connection with any transaction involving a consumer's credit or debit card; and

(2) the extent to which the implementation of such requirements would reduce the incidence of identity theft and fraud.

(b) REPORT- The Board of Governors of the Federal Reserve System shall submit a report to the Congress before the end of the 9-month period beginning on the date of the enactment of this Act containing the findings and conclusions of the Board with respect to the study conducted pursuant to subsection (a) and such recommendations for legislative or administrative action as the Board determines to be appropriate.

END