Interpretive rule clarifies FCRA generally preempts state laws

A CFPB rule published in the Federal Register today clarifies that the Fair Credit Reporting Act (FCRA) generally preempts state laws that touch on broad areas of credit reporting. The rule confirms the withdrawal of a 2022 interpretative rule that narrowly interpreted FCRA preemption, deferring to most state privacy and credit reporting laws that were “not inconsistent” with FCRA.

“With the Bureau’s confirmation of its earlier rescission of the 2022 interpretive rule, credit unions now have a clearer, more uniform standard for preemption under the Fair Credit Reporting Act,” said America’s Credit Unions Head of Regulatory Advocacy James Akin. “Credit unions are the financial marketplace's original consumer protectors and remain committed to ensuring a fair, transparent credit reporting system.”

The 2022 rule invited states to bring lawsuits in federal court for unfair and deceptive acts and practices (UDAAP) violations and for any violations of the “enumerated consumer laws” enforced by the CFPB. It was part of several pieces of guidance, interpretive rules, policy statements, and advisory opinions withdrawn by the CFPB in May to align with the administration’s deregulatory goals.

The rule is final upon publication and does not solicit any comments.

Read the rule