CFPB Imposes Several New Duties On Big Data Brokers

The Consumer Financial Protection Bureau ("CFPB") has issued several statements affecting the credit reporting industry in the last few months, including one on medical debts and one on auto financing, while at the same time emphasizing that the definition of a consumer reporting agency ("CRA") should be interpreted broadly to include not just credit reporting companies and tenant screeners but also "other data brokers." This means that any company collecting "Big Data" and hoping to convert that data into profit by offering reports on individual consumers should beware and consider themselves a CRA that is subject to the Fair Credit Reporting Act ("FCRA") and the CFPB.

CRAs now must provide consumers with a means to remove, challenge or update items on their credit report that appear because the consumer has been the victim of a severe form of human trafficking or sex trafficking. This means that CRAs must develop new processes to accept, evaluate and police these