The Consumer Financial Protection Bureau (CFPB) has officially withdrawn its proposed rule titled Protecting Americans from Harmful Data Broker Practices (Regulation V). Initially published in the Federal Register on December 13, 2024, this rule aimed to clarify and implement certain provisions of the Fair Credit Reporting Act (FCRA), including definitions of “consumer report” and “consumer reporting agency,” and the circumstances under which consumer reports can be shared or accessed.
However, the CFPB has determined that moving forward with this legislative rulemaking is not necessary or appropriate at this time. As a result, the Bureau will take no further action on this proposal.
The decision to withdraw the rule reflects several key considerations:
- Shifts in Policy Direction: The CFPB is currently revising its interpretation of the FCRA and reassessing its policy objectives. The proposed rule, while rooted in the FCRA, does not align with the Bureau’s updated approach.
- Public Feedback: The Bureau received a wide range of comments during the public input period. Some commenters questioned whether the proposed rule conformed to the FCRA’s plain language, while others raised doubts about the CFPB’s legal authority to enact certain provisions. These concerns, according to the Bureau, require deeper examination before any further regulatory action can be taken.
- Future Rulemaking Possibility: The CFPB has indicated that it may revisit this issue in the future. Should it determine that new regulations are needed to address data broker practices under the FCRA, the Bureau will initiate a fresh rulemaking process and invite public comment.
For now, the withdrawal means the CFPB will not move forward with the proposed definitions and rules related to consumer reporting under Regulation V. The official notice was published today, May 15, 2025, in the Federal Register. You can read the full announcement online at federalregister.gov or govinfo.gov.
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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.
