Financial Services Groups Urge CFPB to Reconsider Data Broker Regulation

February 11, 2025 - 00:18

Seventeen financial services trade groups are urging the Consumer Financial Protection Bureau (CFPB) to reconsider its proposed amendments to the Fair Credit Reporting Act (FCRA) that would significantly affect data brokers. The groups argue that the proposed rule could impose excessive burdens on the financial services industry, potentially stifling innovation and increasing costs for consumers.

The trade organizations emphasize that the current regulatory framework already provides sufficient oversight of data brokers, and further regulations may lead to unintended consequences. They contend that the proposed changes could disrupt the delicate balance between consumer protection and the operational efficiency of financial institutions.

Additionally, the groups express concern that the new rules may hinder the ability of financial services providers to access critical information needed for risk assessment and fraud prevention, ultimately impacting their ability to serve customers effectively. As the CFPB continues to evaluate the proposed rule, these trade groups remain steadfast in their call for a more measured approach to data broker regulation.