The CFPB has extended the comment period for its Notice of Proposed Rulemaking on data brokers until April 2, 2025; the comment period had been slated to expire on March 3, 2025

The bureau said it was extending the comment period to allow interested persons more time to consider and submit their comments on the rule.

The proposed rule would treat data brokers like credit bureaus and background check companies: Companies that sell data about income or financial tier, credit history, credit score, or debt payments would be considered consumer reporting agencies required to comply with the FCRA, regardless of how the information is used.

As previously reported, while the CFPB touts the proposal as one to cover data brokers, it is much broader than that.  Among other things, if adopted as proposed it would also greatly expand the definitions of consumer report and consumer reporting agency and severely restrict the “written instructions” (written authorization) permissible purpose.

Seventeen financial services trade groups recently called on the CFPB to abandon the plan. “We believe that the proposal is both substantively and procedurally flawed in several key areas,” the groups, including the Mortgage Bankers Association, the Consumer Bankers Association, the American Fintech Council and the U.S. Chamber of Commerce wrote, in a letter to the CFPB.