The Shopper Monetary Safety Bureau (CFPB) has rolled out new rules on cyber safety and information privateness below the Honest Credit score Reporting Act.
Corporations must regulate how they use and share credit score stories and background stories below the brand new regulation. The laws will curb the exploitation of non-public information in background screenings and credit score stories.
The Honest Credit score Reporting Act dictates how corporations make stories on shoppers and the way they acquire information on shopper stories for credit score, insurance coverage, housing, and employment. The Act goals to guard the privateness of shoppers and be sure that corporations make correct credit score stories. Beneath the brand new guidelines, further layers of safety will shield shoppers and allow corporations to gather information solely when important for his or her providers.
In October 2021, the CFPB ordered massive techs together with Amazon, Apple, Fb (Meta), and Google at hand over data on their cost system plans to look at their use of shopper information.
By June 2022, the US Home of Representatives had proposed a privateness invoice to Congress that might regulate how massive tech corporations, resembling Meta and Google, acquire buyer information for his or her providers. The invoice has handed the vote by the Home Vitality and Commerce subcommittee, and can progress for one more vote.
The CFPB plans to carry corporations accountable for unlawful debt assortment and false identification of shoppers in background stories. It is a step in direction of reining in massive tech and safeguarding compliance that has been persistently taken on by Congress.
CFPB director Rohit Chopra commented on the necessity for the CFPB to defend shopper privateness and cut back legal misconduct by credit score reporting corporations: “People are actually topic to round the clock surveillance by giant industrial companies searching for to monetize their private information. Whereas Congress and regulators should do extra to guard our privateness, the CFPB can be taking steps to make use of the Honest Credit score Reporting Act to fight misuse and abuse of non-public information on background screening and credit score stories.”
In April, the CFPB introduced it could invoke the Dodd-Frank Act to watch non-bank fintechs that might pose a risk to People.