CFPB reports on credit reporting violations as it considers rulemaking

The Consumer Financial Protection Bureau issued a report on accuracy problems in the credit reporting system.

Details: The CFPB said:

• Consumer reporting companies failed to ensure the accuracy of credit reports, including by failing to exclude information resulting from alleged identity theft or human trafficking.

• Furnishers—which provide information to consumer reporting companies—failed to correct false or fraudulent information sent to consumer reporting companies.

Pending Rulemaking: CFPB Director Rohit Chopra recently said the bureau is planning to propose rules this year to ensure data brokers, including consumer reporting agencies, comply with the Fair Credit Reporting Act. Under such a proposal, he said, company sales of data on a consumer’s payment history, income, or criminal records would generally be treated as a consumer report, triggering requirements for ensuring accuracy, handling disputes, and prohibiting misuse.

CFPB Report: The CFPB in January issued a report on its rulemaking under the Small Business Regulatory Enforcement Fairness Act. The report included input from ICBA’s panel representative Jeff Jacobson, compliance officer at New Market Bank in Elko New Market, Minn., who warned that terms in the CFPB’s regulatory outline are too broad and bring unanticipated entities within the scope of FCRA.

ICBA Advocacy: ICBA and other groups previously called on the CFPB to issue an advance notice of proposed rulemaking before releasing its pending proposed rule to solicit the widest range of input. ICBA separately 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.