CFPB proposes rule on consumer reporting

The Consumer Financial Protection Bureau issued a notice of proposed rulemaking related to consumer reporting and the requirements of the Fair Credit Reporting Act.

Details: The CFPB said the proposed rule would amend Regulation V to implement FCRA definitions of consumer report and consumer reporting agency, as well as certain other FCRA provisions, to ensure that FCRA protections are applied to sensitive consumer information, including information sold by data brokers.

Background: The proposal stems from a bureau overhaul of the FCRA regulations that started in March 2023. ICBA issued a comment letter raising concerns about the compliance impact of expanding the entities covered as consumer reporting agencies and arguing that community banks do not qualify as data furnishers. The CFPB then held a panel in October 2023 that included input from ICBA’s panel representative Jeff Jacobson of New Market Bank in Elko New Market, Minn.

More: This is the second proposal to come from the FCRA overhaul. The first came earlier this year, when the bureau proposed a rule that would dramatically restrict medical debt reporting.