US CFPB’s push for Fair Credit Reporting Act compliance among data brokers

CFPB seeks regulation for data brokers under FCRA, citing consumer privacy and national security concerns over data sales to foreign entities.

 Person, Security

The US Consumer Financial Protection Bureau (CFPB) requested a new regulation that would require data brokers to comply with the Fair Credit Reporting Act (FCRA). Essentially, the FCRA bans sharing certain kinds of data with entities unless there is a specific purpose per the law. These could be used for employment purposes or extending a line of credit to someone.

Director of the CFPB Rohit Chopra stated that implementing such laws is imperative not only for the protection of consumer privacy but also for national security. Chopra stressed that data brokers can sell data to countries of concern and land in the hands of foreign intelligence services.

Why does it matter?

With the US House of Representatives passing the data privacy bill against foreign adversaries, it is evident that the US is leaning toward stricter laws against data brokers. While data brokers are still legal in the USA more and more government agencies are begging to request stricter laws that would ensure higher protection and raise the data protection threshold in the country.