On December 9, 2024, the CFPB issued an Advance Notice of Proposed Rulemaking to address the harmful effects of inaccurate credit reporting affecting survivors of domestic violence, elder abuse, and other forms of financial abuse. The Bureau aims to gather additional public input on potential amendments to the regulation that implements the Fair Credit Reporting Act (FCRA).
The CFPB is seeking information in advance of preparing a proposed rule to address concerns related to information furnished to credit bureaus and other consumer reporting agencies concerning coerced debt. In particular, the advance notice of proposed rulemaking solicits information on amending the definitions of “identity theft” and “identity theft report” in Regulation V as well as information stemming from transactions that occurred without the consumer’s effective consent. The Advance Notice of Proposed Rulemaking asks consumer advocates, credit reporting companies, and the public to comment on:
The prevalence and extent of harms to people with coerced debt, including through the credit reporting system.
Evidence regarding the relevance of coerced debt to a survivor’s credit risk.
Barriers to accessing existing protections under federal or state law for survivors of economic abuse.
Challenges resulting from coerced debt facing specific populations including survivors of intimate partner violence and gender-based violence, older Americans, and children in foster care.
Potential documentation or self-attestation requirements for showing that a person’s debt was coerced.
Comments will be accepted until March 7, 2025.
Read the CFPB’s press release here.
The Advance Notice of Proposed Rulemaking can be found here.