Credit headers should not be classified as consumer reports

The Consumer Financial Protection Bureau (CFPB) should not classify identifying information such as credit header information as a consumer report, CUNA and other organizations wrote to the bureau. The letter was sent in response to a request from other groups that the CFPB issue an advisory opinion to define credit header data as a consumer report.

“Our members play critical roles in providing the financial services that allow consumers to obtain and manage financial services and improve their financial lives. As part of that role, financial institutions seek to prevent fraud, including identity theft that harms consumers and disrupts their lives,” the letter reads.

“Financial institutions also play an important part in preventing money laundering, the financing of terrorism, and crime,” it adds. Being able to confirm identities is critical—and required by law—to those responsibilities. Regulating identifying information, as recommended in the letter from the group of advocates, will thwart the ability to confirm identities and advance anti-crime policies.”

The CFPB should not make this classification because:

• It will harm consumers and facilitate fraud, identity theft, and other crimes and thwart know your customer efforts.
• Subjecting identifying information such as credit header information to the Fair Credit Reporting Act means financial institutions will have more difficulty verifying a person’s identity.
• Classifying identifying information as a consumer report under the FCRA would be contrary to the statute and well-settled regulatory and judicial precedents.
• An advisory opinion or other regulatory action is unnecessary as the use and disclosure of identifying information obtained from financial institutions is sufficiently regulated under the Gramm-Leach-Bliley Act (GLBA).