CFPB’s Chopra discusses privacy concerns and floats FCRA proposal

On September 19, CFPB Director Rohit Chopra delivered prepared remarks highlighting national security concerns related to the abuse and misuse of personal data. As previously covered by InfoBytes, Chopra emphasized President Biden’s recent Executive Order, which aims to prevent countries of concern from accessing Americans’ personal data, by highlighting how data brokers who sell sensitive data could be accessed by countries of concern, causing national security risks.

Chopra also addressed the role of the FCRA in protecting consumer data, noting that it was one of the pioneering data privacy laws and governs the reporting of personal information. He emphasized that not all companies comply with the FCRA, which heightens the risks posed by data brokers. To address this, the CFPB has launched a rulemaking process to ensure these brokers follow existing laws, thereby increasing consumer control over their sensitive data and reducing threats to national security.

Besides discussing his privacy concerns, Chopra noted the CFPB plans to propose a rule to extend the FCRA’s privacy protections to data brokers. This initiative aims to curb the unrestricted flow of sensitive data, which contributes to various forms of exploitation, such as financial scams and identity theft, especially in an era increasingly influenced by AI and predictive technologies.