CFPB Faces Opposition to Proposed FCRA Rule

Industry Groups Challenge Agency's Authority

The Consumer Financial Protection Bureau (CFPB) is facing opposition from industry groups over a proposed rule that would remove a regulatory exception in Regulation V from the limitation in the Fair Credit Reporting Act (FCRA) on creditors.

Key Provisions of the Proposed Rule

• Removal of the Financial Information Exception
• Exclusion of medical debt owed to third parties (should the rulemaking proceed)

Opposition from Industry Groups

On August 9, 2024, the American Bankers Association (ABA) submitted a comment letter in opposition to the proposed rule, arguing that the CFPB lacks the authority to make such changes.

On March 28, 2024, Americans for Tax Reform (ATR) also submitted a comment letter, expressing concerns about the potential negative impact of the rule on consumers.

Next Steps

Industry groups have until August 12, 2024, to submit comment letters to the CFPB. The CFPB will then review the comments and consider any revisions to the proposed rule before issuing a final version.