The Consumer Financial Protection Bureau withdrew its proposed rule on data broker practices (Regulation V), calling it unnecessary or appropriate at this time.
Background: Proposed on Dec. 13, 2024, the rule would amend Regulation V to implement certain Fair Credit Reporting Act definitions for consumer reports and the consumer reporting agency along with certain other FCRA provisions. The rule was designed to ensure protections are applied to sensitive consumer information, including information sold by data brokers.
More: The proposal stemmed 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 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.
