Maryland Legal Alert for Financial Services
CFPB Issues New Interpretive Rule on FCRA Preemption
CFPB Issues New Interpretive Rule on FCRA Preemption
On October 28, 2025, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule under the Fair Credit Reporting Act (FCRA) declaring that federal law generally preempts state laws governing the content of consumer credit reports. CFPB’s action formally replaces and withdraws the July 2022 interpretive rule issued under the prior administration, which had taken the opposite view and concluded that the FCRA’s preemption provisions were limited in scope.
The 2022 interpretive rule analyzed section 1681t(b)(1) of the FCRA and asserted that it had a “narrow sweep,” allowing for substantial state regulation of consumer reports and consumer reporting agencies. CFPB reasoned that the statute did not preempt all state laws “relating to the content or information contained in consumer reports,” but only those that specifically imposed requirements covered by the enumerated FCRA provisions.
However, on May 12, 2025, CFPB announced the withdrawal of numerous guidance documents, including the 2022 interpretive rule. The October 2025 rule confirms that withdrawal and provides a new interpretation—one emphasizing that the FCRA broadly preempts state laws that touch on key areas of credit reporting.
CFPB explained that the 2022 interpretation was inconsistent with the plain text of section 1681t(b)(1) and contrary to both legislative history and longstanding judicial precedent. CFPB now asserts that when a state law regulates the same subject matter addressed by the FCRA’s preemption clause, such as information included in credit reports, federal law controls.
CFPB’s latest interpretive rule marks a significant policy reversal from the Bureau’s 2022 stance and is likely to have immediate practical and legal implications. Multiple states have recently enacted laws restricting the inclusion of medical debt and other sensitive information in consumer credit reports. Under the CFPB’s new interpretation, these laws may now be viewed as preempted by federal law.
Practice Pointer: Financial institutions should promptly review multi-state compliance frameworks to assess where state consumer-reporting requirements may conflict with the CFPB’s interpretation of the FCRA. Financial institutions should also monitor forthcoming litigation and potential state–federal conflicts, particularly as courts test the CFPB’s emphasis on federal preemption.
For more information, contact Tamia J. Morris.