Panel echoes credit union recommendations on FCRA proposal

A Small Business Regulatory Enforcement Act (SBREFA) panel convened by the CFPB shared several recommendations made by America’s Credit Unions regarding the bureau’s Fair Credit Reporting Act (FCRA) proposal. The CFPB published its report from the panel Wednesday.

This follows a CFPB outline of FCRA proposals under consideration published in September, which America’s Credit Unions argued were an unwarranted expansion of the FCRA not supported by data.

The panel made several recommendations to address the costs and burden on specific industries and encouraged alternative approaches from the bureau.

It also shared credit union concerns over the scope of the proposed definition of “data broker.” Credit unions believe it should be narrowly defined, and the panel recommended the CFPB carefully consider the scope of entities it proposes to cover.

America’s Credit Unions remains concerned that the FCRA is intended to cover factual inaccuracies, not legal disputes.

The SBREFA panel—consisting of entities likely to be subject to the rule—recommended the CFPB clarify that it is not proposing to require consumer reporting agencies or furnishers to distinguish between disputes involving legal matters and other disputes.

The panel instead advised the CFPB to make clear that those agencies are required to investigate all disputes in accordance with the FCRA regardless of how the dispute is characterized.

America’s Credit Unions published an analysis of the SRBREFA panel, containing the organization’s recommendation, the panel recommendation, the CFPB’s proposal, and how the proposal will impact credit unions.

The rulemaking process will continue throughout this year, with a Notice of Proposed Rulemaking expected later in the year. America’s Credit Unions will continue to examine the recommendations of the panel as it prepares for a proposed rule.

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