CBA Statement On CFPB’s Fair Credit Reporting Act Small Business Regulatory Enforcement Fairness Act Outline

September 21, 2023

Consumer Bankers Association (CBA) President and CEO Lindsey Johnson today released the following statement after the Consumer Financial Protection Bureau (CFPB) issued an outline of proposals under the Small Business Regulatory Enforcement Fairness Act (SBREFA) for the Fair Credit Reporting Act (FCRA):

“The nation’s leading retail banks remain fully committed to protecting the personal financial data of the millions of Americans they serve and have proudly adhered to requirements under the FCRA for over 50 years. CBA appreciates that the Bureau has included many of the issues our members have observed throughout the decades they have spent implementing the law. At the same time, it is imperative that policymakers also address areas of the outline that could hinder banks’ ability to deliver products and services consumers expect with the protections they deserve.

“For example, the SBREFA outline proposes requiring consumers’ personal identifiable information – often referred to as “credit header data” – to be subject to the FCRA. While we understand the concerns stemming from the use of this information by unscrupulous nonbank companies, such as those on the dark web, it is also critical for the Bureau to recognize the impact this potential requirement would have on the well-regulated banking industry. Banks spend millions of dollars to protect their customers’ data and prevent fraud, sometimes utilizing credit header data to do so, which we explained in our letter to the Bureau on the important ways banks use credit header data to prevent consumer identity theft and fraud sent earlier this month. CBA will continue to educate the Bureau on the many ways banks use credit header data to prevent fraudulent activity, such as identity theft, including advocating for an exemption for these consumer protective purposes.

“We have a voluntary credit reporting system that is the envy of the world because of our banks and the data they provide. We encourage the Bureau to consider the voluntary nature of the credit reporting system and the benefits it provides consumers. If implementation costs and legal risks from this rule are too high, it may have a direct impact on whether furnishers participate in the credit reporting system.

“We look forward to providing feedback on the SBREFA outline and leveraging banks’ 50 years of implementing the FCRA to enhance the final rule. We stand ready and willing to work together with policymakers on developing a proposed rule that furthers our shared objective of protecting all consumers and their personal financial data.”

CBA Advocacy 

  • To read CBA’s letter to the CFPB on the important ways banks use credit header data to prevent consumer identity theft and fraud, click HERE.