The Fair Credit Reporting Act’s (FCRA) preemption of state laws related to consumer credit reporting is broader than presented in a now-rescinded 2022 interpretive rule, the Consumer Financial Protection Bureau (CFPB) says.
The CFPB, in a new interpretive rule published in Tuesday’s Federal Register, says the FCRA “generally preempts” state laws touching on “broad areas” of credit reporting, “consistent with Congress’s intent to create national standards for the credit reporting system.”
In background for its 2022 interpretive rule, the CFPB of the time said that state laws that are not “inconsistent” with the FCRA, “including State laws that are more protective of consumers than the FCRA,” are generally not preempted by the federal statute. Today’s CFPB holds that the federal statute’s preemption has a broader sweep.
Tuesday’s notice states that agencies “do not have special expertise in interpreting preemption clauses, and the 2022 rule should not have done so with respect to the scope of preemption under the FCRA.”
The new interpretive rule became applicable Tuesday, Oct. 28, the bureau notice states.
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