CFPB should delay FCRA proposal SBREFA process

CUNA, NAFCU, and other organizations wrote to the Consumer Financial Protection Bureau (CFPB) Friday with concerns over the condensed timeframe outlines for Small Entity Representatives (SERs) to comment on its Fair Credit Reporting Act (FCRA) rulemaking. The organizations request the timeline laid out for Small Business Regulatory Enforcement Fairness Act (SBREFA) panel participants be delayed to no earlier than Oct. 17.

“Under the CFPB’s proposed timeline, SERs have only a few weeks to review the outline, which includes highly complex and sweeping changes to the FCRA that will fundamentally alter current practices and compliance regimes for businesses and financial institutions,” the letter reads. “We note that the CFPB indicates that SERs should be prepared to ask clarifying questions by October 4, 2023, which certainly requires a full analysis and understanding of the lengthy and comprehensive documents provided to them just a few weeks ago.

“In our estimation this is not nearly enough time for small business owners, who also continue to operate their business and financial institutions, to adequately prepare and offer alternatives and data as the CFPB requests,” it adds.

SBREFA requires the CFPB to collect advice and recommendations from SERs that are likely to be subject to the regulation the CFPB is proposing.

CUNA joined NAFCU, American Bankers Association, Consumer Data Industry Association, Independent Community Bankers of America, and Professional Background Screening Association in sending the letter.