CFPB to propose rules governing data broker practices

The Consumer Financial Protection Bureau will propose new rules to prevent the misuse and abuse of consumer information collected by credit reporting companies and other data brokers. During a White House roundtable on Tuesday CFPB Director Rohit Chopra previewed an outline of proposals and alternatives under consideration, which would include:

• A definition of data broker and requirements to ensure the accuracy and governing of the handling of disputed information; and

• Addressing confusion around whether “credit header data” is a consumer report.

ICBA Comments: Responding to an earlier request for comment, ICBA said:

• The bureau should hold data brokers and aggregators accountable under the FCRA by requiring disclosures for consumers about the information they collect and use.

• Community banks do not qualify as furnishers because data brokers do not meet the definition of a consumer reporting agency.

The bureau plans to propose the rule for public comment next year.