CFPB: States can issue fair credit reporting laws

June 29, 2022

The Consumer Financial Protection Bureau issued an interpretive rule affirming states’ abilities to issue their own fair credit reporting laws.

Rule Details: The CFPB said:

  • States have the flexibility to preserve fair and competitive credit reporting markets by enacting state-level laws that are stricter than the federal Fair Credit Reporting Act.

  • State laws are not preempted unless they conflict with the Fair Credit Reporting Act or fall within narrow preemption categories enumerated within the statute.

Background: The Fair Credit Reporting Act defines and establishes guidelines for credit reports and the process for consumers to dispute information in their credit files.

Impetus: The CFPB said it issued the interpretive rule after it was notified by the Office of the New Jersey Attorney General of pending litigation that included an allegation the FCRA preempted a New Jersey consumer protection statute.