CFPB Imposes A number of New Duties On Massive Information Brokers – Monetary Companies

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The Shopper Monetary Safety Bureau (“CFPB”) has
issued a number of statements affecting the credit score reporting trade
in the previous couple of months, together with one on medical money owed and one on auto financing, whereas on the similar time
emphasizing that the definition of a shopper reporting company
(“CRA”) must be interpreted broadly to incorporate not simply
credit score reporting corporations and tenant screeners but additionally “different knowledge brokers.” This
implies that any firm gathering “Massive Information” and hoping
to transform that knowledge into revenue by providing experiences on particular person
customers ought to beware and take into account themselves a CRA that’s
topic to the Honest Credit score Reporting Act (“FCRA”) and the

CRAs now should present customers with a method to take away,
problem or replace gadgets on their credit score report that seem
as a result of the patron has been the sufferer of a extreme type of human
trafficking or intercourse trafficking. Because of this CRAs should develop
new processes to simply accept, consider and police these sorts of experiences
from customers. New modifications to Regulation V, the implementing
regulation of the FCRA, require fully new processes to be
established to accommodate and handle such experiences, and these
obligations apply not simply to the nationwide credit score bureaus however to
all corporations that qualify as a CRA. One other new responsibility all CRAs will
need to face is to trace and monitor state legal guidelines addressing credit score
experiences, on account of the CFPB’s Interpretive Rule that seeks to restrict the
preemptive results of the FCRA. Because the CFPB says within the rule, this
implies that, “[s]tates subsequently retain substantial flexibility
to cross legal guidelines involving shopper reporting to replicate rising
issues affecting their native economies and residents.”

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