Tag: Increased State Enforcement

CFPB Gives the Go Ahead for Increased State Enforcement of Credit Reporting The Consumer Financial Protection Bureau (CFPB) has issued a new interpretive rule under the Fair Credit Reporting Act (FCRA). It clarifies the states' ability to institute more stringent regulations than the FCRA's. This interpretive rule further strengthens the CFPB's stance that the FCRA limits states' ability to create regulations on credit reporting practices. Under this rule, states gained considerable flexibility to institute laws, enhancing consumer protection when not expressly prohibited by the FCRA, such as the categories included in Section 1681t(b). The exemption categories contained in the FCRA are typically narrow. They often pertain to a limited set of regulated subject matter and required conduct. So long as states do not attempt regulating these narrow preemption categories, the CFPB will typically indicate the laws not preempted. The FCRA typically focuses on the maximum timeframe that information remains in consumer reports. However, it does not regulate factors such as when and what is in the report, which is where the CFPB's interpretive law steps in. This new law provided non-preempted examples, such as what follows: "For example, if a state law were to forbid consumer reporting agencies from including information about medical debt, evictions, arrest records, or rental arrears in a consumer report (or from including such information for a certain period of time), such a law would generally not be preempted. Likewise, if a State law were to prohibit furnishers from furnishing such information to consumer reporting agencies, such a law would also not generally be preempted. Similarly, if state law required that a consumer reporting agency provide the information required by the FCRA at the consumer's requests in languages other than English, such a law would generally not be preempted." In an announcement on the interpretive rule, the CFPB stated how states play a crucial role in regulating consumer spending. Furthermore, the interpretive rule appears to give states the go-ahead for enacting new and stricter fair credit reporting laws. State regulators and courts will likely use the CFPB's interpretation to limit the FCRA's scope of preemption regarding existing state laws concerning current fair credit report laws. Pre-employ offers resources to help employers stay compliant and incorporate fair chance hiring practices. Download our free resource guide on 5 Tips To Avoid FCRA Non-Compliance to learn more. Source

Tag: Increased State Enforcement

CFPB Gives the Go Ahead for Increased State Enforcement of Credit Reporting

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