A bill to amend title 38 of the United States Code to permit disclosure of names and addresses and other information maintained by the Veterans' Administration to a consumer reporting agency for certain debt collection purposes.

(Reported to Senate from the Committee on Veterans' Affairs with amendment, S. Rept. 96-555)

Authorizes the Administrator of Veterans' Affairs to disclose to a consumer reporting agency the name and address of an individual indebted to the Veterans' Administration (VA) for the purpose of obtaining consumer reports in order to assess such individual's ability to repay the debt and to give notice of the outstanding obligation. Prohibits: (1) the VA from disclosing other information that would create a substantial risk of implying an individual's indebtedness to the United States or otherwise affect his/her credit standing; and (2) the credit reporting agency from indicating in its reports or files that such VA inquiry indicates any indebtedness by such individual (willful violation punishable by a fine of up to $5,000 for the first offense and up to $20,000 for a subsequent offense).

Authorizes the disclosure of an individual's name, address, and other identifying information necessary to locate an individual in order to carry out specified VA evaluation studies. Requires the Administrator to make a pre-disclosure determination that the inclusion of a particular individual in such study is clearly warranted, and would not create a substantial risk to such individual's credit rating. Establishes other disclosure requirements similar to those for indebtedness disclosures.

Authorizes the disclosure of information affecting an individual's credit rating (name, address, indebtedness) if such individual has failed to respond to administrative debt-collection efforts. Requires the VA, before making such indebtedness disclosures, to: (1) notify an individual of the information to be disclosed, and to which credit agencies such information was disclosed, at least 60 days prior to such disclosure; (2) inform the individual of his/her right to dispute the debt claim and provide an opportunity to do so; and (3) make a determination regarding any such disputed debt.

Requires the VA to notify any credit agencies to which it has made disclosures of any change in the status or amount of a debt.

Deems debt-delinquency information "inaccurate" (authorizing a challenge and reinvestigation under the Fair Credit Reporting Act) upon a showing by an individual of non-notification by the VA of indebtedness or right to dispute a debt claim. Requires the VA to notify the individual and any involved credit agencies of such determination.

Exempts a credit agency's handling of such VA debt disclosures from the Privacy Act.

Defines "consumer report", "file", and "consumer reporting agency" for purposes of this Act.