CFPB Asserts Broad FCRA Preemption Over Credit Reporting

The Consumer Financial Protection Bureau ("CFPB") issued an interpretive rule reaffirming that the Fair Credit Reporting Act ("FCRA") broadly preempts state laws governing credit reporting.

In the Interpretive Rule, the CFPB announced it was formally withdrawing its 2022 interpretation, which provided that the "FCRA’s express preemption provisions have a narrow and targeted scope." The CFPB explained that this prior interpretation, which advocated a narrow view of preemption, was "manifestly wrong" and inconsistent with Congress’s intent to maintain uniform national standards. The agency noted that legislative history—particularly the 1996 and 2003 amendments—reflects Congress’s ongoing effort to strengthen preemption and promote a cohesive national credit reporting system.

The CFPB further clarified that FCRA preemption extends to all state laws governing the content or treatment of information in consumer reports, not merely those addressing specific reporting time limits. The CFPB explicitly rejected the idea that states may prohibit the inclusion of certain categories of information, such as medical debt or arrest records, reasoning that such matters are inseparable from areas already regulated under the FCRA.

The CFPB stated that its new interpretation reaffirms Congress’s goal of avoiding a patchwork of conflicting state laws. The agency emphasized that the FCRA’s plain text—using expansive language such as "[n]o requirement or prohibition" and relating "to any subject matter"—clearly demonstrates Congress’s intent to occupy the field of credit reporting regulation. The CFPB underscored that a consistent federal framework is necessary to reduce compliance burdens, enhance efficiency, and preserve the integrity of nationwide credit reporting.