WASHINGTON—The CFPB has issued a new interpretive rule reaffirming that the federal Fair Credit Reporting Act (FCRA) broadly preempts state laws related to credit reporting, restoring a national standard intended by Congress when the law was enacted.
The move, published Tuesday in the Federal Register, formally replaces a 2022 interpretive rule that the Bureau withdrew earlier this year after determining that it had “sown confusion” and encouraged a patchwork of conflicting state regulations.
The new guidance reasserts that FCRA’s preemption provisions—particularly Section 1681t(b)(1)—were designed to establish uniform national rules for credit reporting and to prevent states from imposing additional or differing requirements on consumer reporting agencies, furnishers, or users of credit data.
The Bureau emphasized that the 2022 rule had incorrectly narrowed the scope of federal preemption by allowing states to regulate areas such as medical debt, rental information, or arrest records. According to the CFPB, the earlier interpretation contradicted both the plain text of the statute and Congress’s clear intent to create a consistent nationwide framework for credit information.
In withdrawing the 2022 rule, the CFPB cited recent Supreme Court rulings affirming that courts—not agencies—are the ultimate arbiters of statutory meaning, and that federal agencies lack special authority to define the scope of preemption absent congressional delegation. The Bureau said the prior rule had increased compliance burdens for lenders and consumer reporting agencies by introducing uncertainty into an area that Congress had sought to standardize nearly two decades ago.
“The 2022 rule risked fracturing the national credit-reporting system by allowing each state to create its own standards,” the Bureau wrote, warning that such fragmentation could raise credit costs and reduce data accuracy.
“Credit unions have always prioritized consumer protection and transparency. DCUC and our member credit unions remain committed to fostering a fair, safe, and consistent financial marketplace that serves the best interests of America’s communities and the broader credit reporting system,” said Jason Stverak, Defense Credit Union Council chief advocacy officer.