CFPB to CRAs — "Oops" Isn’t a Defense Anymore
New Rules, Tougher Standards — What the CFPB’s Latest Opinions Mean for You
The Consumer Financial Protection Bureau (CFPB) just dropped a legal hammer on companies that mishandle your data. Through four new advisory opinions, the CFPB is making it clear — consumer reporting agencies (CRAs) don’t just need to fix mistakes after the fact; they must prevent them before they happen.
At R23 Law, our California Consumer Protection Attorneys help consumers fight back when false, outdated, or misleading information ends up in a background check, credit report, or tenant screening file. These new CFPB guidelines make it easier for consumers to sue CRAs and hold them accountable under the Fair Credit Reporting Act (FCRA).
What Is the FCRA — and Why Does It Matter?
The Fair Credit Reporting Act is a federal law that requires CRAs to:
Use accurate data
Disclose their sources
Provide reports on request
Fix disputes properly
Prevent illegal or false data from being reported in the first place
The CFPB’s four new opinions clarify how these obligations must be met — and set the stage for stronger legal claims when companies fail.
CFPB’s Four New Directives — What CRAs Must Now Do
1. Don’t Report What Shouldn’t Be Reported
CRAs must exclude sealed, expunged, or otherwise restricted information from background checks. That includes old criminal data that is no longer legally reportable — even if it shows up in public databases.
2. Say What Actually Happened — Not Just That Something Happened
If a report mentions an arrest, it must also explain if the charges were dropped. Leaving out that detail could make someone look guilty of something they were never convicted of.
3. Know When the Reporting Clock Starts — And When It Stops
The reporting period starts when the event occurs, not when additional actions happen later (like sentencing or probation). There’s a seven-year limit for most negative info. CRAs can’t restart the clock by tacking on updates.
4. Give Consumers Full Access to Their Files — Without Games
Consumers don’t need to say “magic words” to get their files. If you ask for your data, CRAs must provide the full report, including:
Who provided the data
Who handled it
Where it came from
Why This Matters to Consumers
These new opinions give consumers better tools to fight back against:
Wrongful job loss due to false background checks
Inaccurate credit reports that impact loans or housing
Hidden data errors that CRAs previously tried to deny or downplay
Lawsuit defenses CRAs used to avoid liability
Now, courts can rely on these CFPB guidelines to find FCRA violations — making it easier to win consumer lawsuits.
R23 Law’s Take — A Win for Justice, but Long Overdue
As consumer lawyers with decades of experience, we know how often CRAs cut corners. Many companies treat lawsuits like a cost of doing business — but this new clarity from the CFPB should force them to act more responsibly.
When CRAs:
Report sealed or dismissed charges
Ignore your dispute
Misrepresent your criminal record
Refuse to give you your file
...you have the right to fight back — and potentially recover damages.
Contact R23 Law Today
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Whether you lost a job or were denied a loan because of reporting errors, R23 Law’s California Consumer Protection Attorneys are here to help.
