CFPB Withdraws Proposed Rule on Data Brokers: Impact and Implications
CFPB's Withdrawal: Understanding the Impacts
The Consumer Financial Protection Bureau (CFPB) is withdrawing its proposed rule aimed at regulating data brokers. This move comes as acting Director Russell Vought expressed that the rule is no longer deemed necessary or appropriate.
Concerns Over Consumer Protection
Former CFPB Director Rohit Chopra advocated for the rule to combat risks like national security threats and criminal exploitation associated with data brokers. However, Vought indicated that the proposal does not align with the current interpretation of the Fair Credit Reporting Act (FCRA).
Watchdog Groups React
- Consumer Reports analyst Matt Schwartz criticized the decision, asserting it leaves consumers more vulnerable to data breaches.
- He emphasized the need for limits to protect sensitive information, including Social Security numbers.
Wider Context of CFPB Changes
The withdrawal of the data broker proposal is part of broader rollbacks at the CFPB, with nearly 70 policy statements also rescinded recently.
This decision reflects ongoing turmoil within the agency, which has faced criticisms for its operational changes under Vought's leadership.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.