Credit Reporting + Data Brokers

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This article was republished in insideARM on June 17, 2025.

On May 22, Illinois House Bill 3352 passed the Illinois legislature and now awaits Governor JB Pritzker’s signature. This bill amends the Illinois Collection Agency Act to provide an individual a way to avoid liability for a coerced debt. HB 3352 defines coerced debt as a debt incurred due to fraud, duress, intimidation, threat, force, coercion, undue influence, or non-consensual use of the debtor’s personal identifying information as a result of domestic abuse, sexual assault, exploitation, or human trafficking.

Last week, the Consumer Financial Protection Bureau (CFPB or Bureau) submitted several regulatory proposals to the Office of Management and Budget (OMB) for review. Among the rules under consideration are those related to loan originator (LO) compensation and discretionary mortgage servicing, governed by the Truth in Lending Act (Regulation Z) and the Real Estate Settlement Procedures Act (Regulation X). Additionally, the CFPB is reviewing its “larger participant” rules, which define the scope of its supervisory authority over major players in the debt collection and consumer credit reporting sectors. These rules, currently in “prerule” status, are under scrutiny by the OMB.

In a recent decision, the U.S. Court of Appeals for the Second Circuit clarified the expectations for furnishers when investigating consumer disputes under the Fair Credit Reporting Act (FCRA). In Suluki v. Credit One Bank, No. 23-721 (2d Cir. May 28, 2025), the Second Circuit emphasized that the FCRA requires furnishers to conduct reasonable, not perfect, investigations into disputed accounts. The opinion also cements the fact that summary judgment is possible — and appropriate — when a furnisher conducts a reasonable investigation of a credit dispute.

Today, the Consumer Financial Protection Bureau (CFPB or Bureau) filed its decision to withdraw the proposed rule titled “Protecting Americans from Harmful Data Broker Practices (Regulation V)” in the Federal Register. The rescission is scheduled to be published tomorrow. This withdrawal marks a significant shift in the Bureau’s approach to regulating data brokers and other updates to Regulation V under the Fair Credit Reporting Act (FCRA).

Today, the Consumer Financial Protection Bureau (CFPB or Bureau) announced the withdrawal of 67 regulatory guidance documents, including interpretive rules, policy statements, and advisory opinions that have been issued since the Bureau’s inception in 2011. The withdrawn guidance documents impact most federal consumer protection laws, including the Consumer Financial Protection Act of 2010 (CFPA), Fair…

On March 14, the U.S. Court of Appeals for the Fourth Circuit issued a ruling addressing the obligations of furnishers under the Fair Credit Reporting Act (FCRA) to conduct reasonable investigations of disputed information, whether the disputed information be legal or factual in nature. The issue of whether the distinction between “legal” and “factual” disputes is relevant under the FCRA has been hotly contested in recent years. The Fourth Circuit’s new decision follows in the footsteps of the Eleventh and Second Circuits by replacing a “legal vs. factual” test with a “readily and objectively verifiable” test.

On February 27, the Federal Trade Commission (FTC) successfully obtained a temporary restraining order against Blackrock Services, Inc. and its associated entities and individuals. The court order aims to halt the defendants’ alleged deceptive and abusive debt collection practices.

This article was republished in insideARM on February 12, 2025.

Yesterday, the Consumer Financial Protection Bureau (CFPB or Bureau) requested and was granted a 90-day stay in the litigation involving trade associations Cornerstone Credit Union League (Cornerstone) and the Consumer Data Industry Association (CDIA). This case, which challenges the CFPB’s Final Rule on the prohibition of medical debt information in consumer reports, has been temporarily halted as the Bureau undergoes significant leadership changes.

On January 30, the Consumer Financial Protection Bureau (CFPB or Bureau) released its updated list of consumer reporting companies for 2025. The list includes nationwide consumer reporting companies as well as several other companies that focus on specific market areas, consumer segments, and types of users. According to the CFPB, consumers can use the list to know about the kinds of personal financial information that is collected for credit and other consumer reports, request their consumer reporting data, dispute inaccuracies, and block access to their credit reporting data through security freezes. 

This week, the U.S. Court of Appeals for the Seventh Circuit issued a decision reversing a summary judgment order in a Fair Debt Collection Practices Act (FDCPA) case. The court found that there were genuine issues of material fact regarding whether the defendant debt collector knew or should have known that the plaintiff disputed the debt, and whether the defendant exercised reasonable care in reporting the debt.