On March 14, the U.S. Court of Appeals for the Fourth Circuit vacated the dismissal of a lawsuit alleging a failure to reasonably investigate a disputed debt.Continue Reading Fourth Circuit Expands FCRA Liability: Legal Inaccuracies Now Actionable
CFPB Shifts Supervision and Enforcement Priorities; Staff Reduction Stayed by Court
On April 16, the CFPB released an internal memo outlining major shifts in its supervision and enforcement priorities, signaling a retreat from several areas of regulatory activity. The next day, the Bureau issued formal reduction-in-force (RIF) notices to numerous employees, notifying them of termination effective June 16.Continue Reading CFPB Shifts Supervision and Enforcement Priorities; Staff Reduction Stayed by Court
CFPB Extends Comment Periods for Two Proposed Regulation V Rules
The CFPB is extending the comment periods for two proposed rulemakings under Regulation V, which implements the Fair Credit Reporting Act (FCRA). On March 5, the Bureau extended the comment period for its proposed rule on data brokers and consumer reports. Similarly, on March 7, the CFPB announced an extension for its Advance Notice of Proposed Rulemaking (ANPR) on identity theft and coerced debt.Continue Reading CFPB Extends Comment Periods for Two Proposed Regulation V Rules
CFPB Drops Two More Major Lawsuits
The CFPB has recently dismissed two more enforcement actions—one against a major credit reporting agency and another against a lease-to-own financing provider. Both lawsuits involved allegations of abusive, unfair, and deceptive acts and practices. Continue Reading CFPB Drops Two More Major Lawsuits
CFPB Publishes Supervisory Highlights Focused on Deposits, Small-Dollar Lending, BNPL, and Paycheck Advance Products
During the week of January 6, the CFPB released a “second” Winter 2024 Supervisory Highlights, focused on the agency’s most recent findings in deposits, small dollar lending, buy now, pay later (BNPL), paycheck advance products, and furnishing. Some key takeaways include:Continue Reading CFPB Publishes Supervisory Highlights Focused on Deposits, Small-Dollar Lending, BNPL, and Paycheck Advance Products
CFPB Orders Credit Reporting Agency to Pay $15 Million for Mishandling Consumer Disputes
On January 17, 2025, the CFPB issued a consent order against a large consumer reporting agency for failing to properly investigate consumer disputes concerning inaccurate information on consumers’ credit reports. The CFPB alleges the agency violated the Fair Credit Reporting Act (FCRA), by relying on ineffective processes and failing to thoroughly investigate disputes. Continue Reading CFPB Orders Credit Reporting Agency to Pay $15 Million for Mishandling Consumer Disputes
CFPB Finalizes Rule Removing Medical Bills from Credit Reports
On January 7, 2025, the CFPB announced the finalization of a rule amending Regulation V, which implements the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., to prohibit the inclusion of medical bills on credit reports used by lenders and prevent lenders from using medical information in lending decisions. According to the Bureau, the final rule (previously discussed here) will remove an estimated $49 billion in medical bills from the credit reports of about 15 million Americans.Continue Reading CFPB Finalizes Rule Removing Medical Bills from Credit Reports
CFPB Alleges Credit Reporting Agency Conducted Sham Investigations of Errors
On January 7, 2025, the CFPB filed a lawsuit against a nationwide consumer reporting agency for violations of the Fair Credit Reporting Act. The lawsuit claims the company’s investigation of consumer disputes was inadequate, specifically criticizing their intake, processing, investigation, and customer notification processes. The lawsuit also alleges the company reinserted inaccurate information on credit reports, which the agency alleges harmed consumers’ access to credit, employment, and housing. In addition to FCRA, the Bureau alleges that the company’s faulty intake procedures and unlawful processes regarding consumer reports violated the Consumer Financial Protection Act’s (CFPA) prohibition on unfair acts or practices.Continue Reading CFPB Alleges Credit Reporting Agency Conducted Sham Investigations of Errors
CFPB Seeks Input to Address Coerced Debt and Financial Abuse Under FCRA
On December 9, the CFPB announced its release of an advance notice of proposed rulemaking to gather information in preparation for the release of a proposed rule to address concerns related to information furnished to credit reporting agencies (CRAs) concerning coerced debt and inaccurate credit reporting affecting survivors of domestic violence and elder abuse, among other forms of financial abuse. Continue Reading CFPB Seeks Input to Address Coerced Debt and Financial Abuse Under FCRA
CFPB Takes Aim at Data Brokers in Proposed Rule Amending FCRA
On December 3, the CFPB announced a proposed rule to enhance oversight of data brokers that handle consumers’ sensitive personal and financial information. The proposed rule would amend Regulation V, which implements the Fair Credit Reporting Act (FCRA), to require data brokers to comply with credit bureau-style regulations under FCRA if they sell income data or certain other financial information on consumers, regardless of its end use.Continue Reading CFPB Takes Aim at Data Brokers in Proposed Rule Amending FCRA
CFPB Warns Employers Regarding FCRA Rules for AI-Driven Worker Surveillance
On October 24, the CFPB issued Circular 2024-06, which warns companies using third-party consumer reports, particularly surveillance-based “black box” or AI algorithmic scores, that they must follow the Fair Credit Reporting Act with respect to the personal data of their workers. This guidance adds to the growing body of law that protects employees from potentially harmful use of AI.Continue Reading CFPB Warns Employers Regarding FCRA Rules for AI-Driven Worker Surveillance