The Consumer Financial Protection Bureau (CFPB) is being challenged over its newly proposed rule governing data brokers. U.S. Chamber of Commerce claimed the bureau exceeded its statutory authority with the rulemaking by basing the proposed rule on an overly broad interpretation of the Fair Credit Reporting Act.
Tom Quaadman, the U.S. Chamber’s senior vice president of economic policy, issued a statement insinuating CFPB Director Rohit Chopra’s exceeded his authority in issuing the proposal.
“The director of the CFPB isn’t a substitute for Congress,” Quaadman said. “In our system of government, no individual or agency can suddenly reinterpret a 50-year-old law about consumer credit reporting to give themselves the power to regulate an entirely different industry.
“This regulatory power grab will actually make it harder for businesses to use common information like consumer addresses and phone numbers to validate consumer identities and prevent fraud. We look forward to working with the incoming administration and Congress to prevent regulatory overreaches, like this one, from hurting our economy and American consumers.”