In the Media

CFPB’s Data Broker Probe Hints At Potential Rule Expansion

March 24, 2023

Of Counsel Brian Fink (Washington, DC) was interviewed by Law360 about the Consumer Financial Protection Bureau’s (CFPB) possible rule expansion based on a new inquiry around companies selling personal data.

“It’s possible they will try to add some specificity to the FCRA definitions to make explicit the kinds of activities that certain data brokers engage in that would constitute a credit report or make them a credit reporting agency,” he said, adding that he sees potential links to other ongoing CFPB work on issues like algorithmic bias and payment platform practices.

“But whether it’s … broadening FCRA or just adding some nuances with respect to how disputes need to be resolved, we won’t know exactly where they’re going to go with it until we see a notice of proposed rulemaking,” Fink said.

This request for information is meant to help CFPB officials use their rulemaking and enforcement tools “in a way that they think will protect consumers, and I don’t doubt their belief in their mission,” he continued. “That’s what they spend their days trying to do. Whether it’s always great for industry is another question.”

Brian is a former CFPB staffer and current Of Counsel in McGlinchey’s Financial Institutions Compliance practice. Click here to read the full article.