Fair Credit Reporting Act (FCRA)


What It Is

The nation’s leading retail banks have proudly adhered to requirements under the Fair Credit Reporting Act (FCRA) for over 50 years, protecting the personal financial data of millions of Americans. These procedures are intended to protect consumers against identity theft and the fraudulent use of their identity to open accounts or commit crimes.

Why It Matters

As the CFPB considers revising FCRA, regulators must also address areas that could hinder banks’ ability to deliver products and services consumers expect with the protections they deserve. For example, subjecting routine – and statutorily required – consumer identity verification practices to the FCRA would substantially increase a bank’s compliance obligations and potentially create consumer confusion.

What We Believe

Policymakers must work in tandem with banks on efforts to protect consumers from fraud and identity theft.
Subjecting routine tools banks utilize to verify identities to the FCRA may yield significant unintended consequences, including an increase in the price of credit or the cost for consumers to open an account.
For example, subjecting credit header data to FCRA, which is used to investigate fraudulent activity, could create hurdles for banks trying to protect their customers and stop fraudulent activity in a timely manner.


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