The Center for Capital Markets Competitiveness (“CCMC”) at the U.S. Chamber of Commerce (“the Chamber”) appreciates the opportunity to submit comments to the Consumer Financial Protection Bureau (“CFPB”) regarding its Outline of Proposals and Alternative Under Consideration for a “Consumer Reporting Rulemaking” under the Fair Credit Reporting Act (FCRA) (the “Outline”). Our comments reflect the significant implications of the Outline for our membership, including the small businesses we represent.
The Outline suggests the CFPB intends to pursue an expansive rulemaking that could fundamentally change how data is used for financial and non-financial purposes. Such an expansive rulemaking could have significant, and potentially severe, implications for how businesses use data to meet the needs of consumers.
We encourage the agency to give more attention to the concerns of small businesses. The CFPB correctly acknowledges that the rule may have a significant economic impact on a substantial number of small entities but devotes insignificant discussion to identifying options for limiting the burden imposed on small entities, including indirect economic impacts. The Outline recognizes three categories of “small entities” that could be impacted by the proposals in the Outline: (1) Entities that meet (or would meet, if the proposals were adopted) the definition of consumer reporting agency in FCRA section 603(f), (2) Entities that furnish information to consumer reporting agencies, and (3) Creditors that use medical debt collection information in making credit eligibility determinations. The Small Business Regulatory Enforcement Fairness Act (“SBREFA”) requires the CFPB to collect the advice and recommendations of small entity representatives (“SERs”) concerning how the proposals under consideration might increase the cost of credit for small entities and if alternatives exist that might accomplish the stated objectives of applicable statutes while minimizing any such costs and burdens.