The Consumer Financial Protection Bureau (CFPB) has extended the public comment period for its proposed rule on data broker activities under the Fair Credit Reporting Act. Initially set to close on March 3, 2025, the deadline has now been pushed to April 2, 2025, allowing more time for stakeholders to review and submit their feedback, according to a Federal Register notice.
Background on the Proposed Rule
The CFPB began investigating data broker practices in June 2023, seeking public and industry input on how these entities collect, share, and use consumer data. Under the proposed rule, data brokers that provide consumer information for permissible purposes could be classified as consumer reporting agencies. Additionally, the rule aims to restrict the sale and transfer of credit header data—information that includes consumer identifiers such as names, birthdates, and addresses.
This regulation has significant implications for a wide range of industries, including financial institutions, housing providers, fintech companies, credit reporting agencies, insurance firms, and employers. Many of these stakeholders are closely monitoring the rule’s development and its potential compliance requirements.
Policy Shifts and Leadership Changes
The extension of the comment period comes amid broader shifts within the CFPB. Under the leadership of Acting Director Russell Vought, much of the agency’s regulatory activity has slowed, with enforcement actions on hold and staffing reductions in certain departments. Meanwhile, discussions surrounding data privacy and national security concerns continue to shape the bureau’s approach to regulation.
During a recent Senate hearing, CFPB Director nominee Jonathan McKernan acknowledged the significance of data collection policies, stating, “There are privacy issues here, there are potentially national security issues here, and I think it’s important that we continue to focus on this as data collection and analytics become more powerful.”
Industry Concerns and the Path Forward
While some policymakers support stricter data regulations, others worry about the unintended consequences of the proposed rule. Critics argue that classifying routine data transactions—such as the purchase of consumer address information—as consumer reports could disrupt existing credit and financial ecosystems. Concerns have also been raised that the CFPB is exceeding its congressional mandate by rewriting key aspects of the Fair Credit Reporting Act without sufficient research on the rule’s impact.
With the extended comment period, industry groups and stakeholders have additional time to provide feedback. Many are expected to highlight potential risks, including how the rule might hinder legitimate business operations and access to accurate consumer data.
How to Submit Comments
For those interested in submitting comments on the proposed rule, the deadline is now April 2, 2025. Comments can be filed through the Federal eRulemaking Portal at www.regulations.gov.
As discussions continue at the federal level, individual states may also take action on similar issues, further shaping the future landscape of data regulation. Organizations and industry participants are encouraged to stay engaged and contribute their perspectives on this evolving policy.
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Author: Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clients’ criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jennifer’s guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
