CFPB Proposal on Data Brokers: Key Updates
Posted by Gracie Nelson on December 4, 2024

CFPB Proposal on Data Brokers: Key Updates
The Consumer Financial Protection Bureau (CFPB) has proposed a new rule aimed at increasing oversight of data brokers who collect, share, and sell consumer information. This proposal could impact industries that rely on third-party data providers, including credit unions. However, it is important to note that proposed rules from any agency at this time could be delayed or reassessed due to the government transition between the Biden and Trump administrations. GoWest will continue to monitor developments closely and update accordingly. Should the proposal move forward, it will be important for all credit unions to ensure third-party vendors are compliant with updated Fair Credit Reporting Act (FCRA) requirements.
Overview of the Proposed Rule
The rule would amend Regulation V to refine FCRA definitions and provisions, with a focus on safeguarding sensitive consumer data.
Key updates under the proposal include:
- Data Accuracy: Requiring data brokers to ensure the information they provide is accurate.
- Consumer Access: Providing consumers with access to their data and enabling them to dispute inaccuracies.
- Restricted Use: Limiting the use of consumer data to permissible purposes defined under the FCRA.
- Transparency: Requiring data brokers to disclose practices, especially when selling data for sensitive uses.
Even if your credit union does not directly engage with data brokers, the rule could affect your operations through third-party vendors or partners who do.
For a more detailed overview, the CFPB has published a Fast Facts document which highlights key aspects of the proposal and relevant sections.
If you are interested in looking at the rule directly, click here.
Next Steps
As the CFPB gathers feedback on this proposed rule until March of 2025, credit unions should begin evaluating third-party data providers and assessing potential compliance implications. Reviewing vendor relationships and monitoring FCRA requirements will be critical in preparing for any changes in the year ahead.
Posted in Advocacy on the Move, Regulatory Advocacy.