CFPB Interpretive Rule on State Authority under Fair Credit Reporting Act Takes Effect

A CFPB interpretive rule clarifying state authority to issue and enforce state fair credit reporting laws became effective on July 11, 2022. The interpretive rule and effective date was published in the Federal Register.

In the interpretive rule, the CFPB affirmed that states may enact laws that are stricter than the federal provisions set forth in the Fair Credit Reporting Act ("FCRA"). As previously covered, the CFPB affirmed that (i) states have wide-ranging authority to protect their residents from harm resulting from credit reporting issues and (ii) state laws are not preempted unless they directly conflict with the FCRA or fall within the narrow preemption categories.