A senior official of Trump’s administration has dismantled a plan that would prevent data between the sale of American personal and financial information, including social security numbers.
The Consumer Protection Office (CFPB) stated in December 2024 that it was planning to close a gap in accordance with the law on fair reporting of credit reports, the federal law that protects the personal data of Americans collected by consumer and reference agencies. The rule would have faced data brokers no other than any other company covered by the federal law and would require them to comply with the rules of privacy.
The rule retired early on Tuesday, according to His registration in the federal register. CFPB’s active director, Russell Vought, who also serves as director of the White House Administration and Budget Office, wrote that the rule is not aligned with the current interpretation of the Office “of the law on fair credit report.
Wired first mentioned Changing the rule on Wednesday.
Data brokers are part of a multi -billion dollars industry that benefits from collecting and selling access to huge amounts of personal and financial information from Americans. These personal data are subsequently sold to other companies, as well as in law enforcement and information, often without the explicit permission of individuals.
The collection of huge data banks also comes with inherent risks. During last year, at least two data brokers have been violated, millions of social security numbers online and extraction of a huge user’s location home data that watched millions of people.
Only in 2024, the Federal Committee of Commerce banned several data brokers from collecting and exchange of data for individuals without their permission, following allegations of illegal monitoring of people.
Privacy have long called for the government to use the law on fair credit report to boost data brokers.
CFPB’s decision to cancel the rule comes days after the Association of Financial Technologies, a industry lobby group representing Fintech non -banking companies, wrote to find its capacity as director of the White House budget. The Lobby Group asked the administration to withdraw the CFPB rule, arguing it would be “harmful to the efforts of financial institutions to detect and prevent fraud”.
CFPB did not send a request for comments.
FTA’s description was corrected.
