CFPB Previews Proposals That Could Fundamentally Shift Data Broker Business

In connection with its convening of a panel of small businesses to provide input on potential regulatory actions, the CFPB released an outline of its proposals to use its rulemaking authority under the Fair Credit Reporting Act (FCRA) to cover data brokers and prohibit the use of medical debt collection data in making credit decisions. While the outline does not include any specific language, it evidences the Bureau's desire to fundamentally alter the data broker business model by expanding the definition of ​"consumer reporting agency" (CRA) to cover more data brokers, and limit their ability to share consumer information without a permissible purpose. The CFPB also seeks to prevent CRAs from providing credit header data to third parties for purposes beyond the scope of the FCRA. In effect, the Bureau intends to significantly curtail the sale of certain personal data for marketing purposes.