Fair Credit Reporting Act (Regulation V); Identity Theft and Coerced Debt, 100922-100923 [2024-29292]

Download as PDF 100922 Federal Register / Vol. 89, No. 240 / Friday, December 13, 2024 / Proposed Rules khammond on DSK9W7S144PROD with PROPOSALS Code Section III, Division 5, as a method acceptable to the staff for the materials, mechanical/structural design, construction, testing, and quality assurance of mechanical systems and components and their supports of high temperature reactors. Proposed Revision 3 also endorses, with conditions, the Code Cases N–861–2, N–862–2, N–872, N–898–1, N–812–1, and N–924 as well as the Code Case in Record 23–15. The staff is also issuing for public comment a draft regulatory analysis (ADAMS Accession No. ML24275A267). The staff developed a regulatory analysis to assess the value of issuing or revising a regulatory guide as well as alternative courses of action. As noted in the Federal Register on December 9, 2022 (87 FR 75671), this document is being published in the ‘‘Proposed Rules’’ section of the Federal Register to comply with publication requirements under chapter I of title 1 of the Code of Federal Regulations (CFR). III. Backfitting, Forward Fitting, and Issue Finality If finalized, the NRC staff may use this RG as a reference in its regulatory processes, such as licensing, inspection, or enforcement. However, the NRC staff does not intend to use the guidance in this RG to support NRC staff actions in a manner that would constitute backfitting as that term is defined in § 50.109 of title 10 of the Code of Federal Regulations (10 CFR), ‘‘Backfitting,’’ and as described in NRC Management Directive (MD) 8.4, ‘‘Management of Backfitting, Forward Fitting, Issue Finality, and Information Requests’’; nor does the NRC staff intend to use the guidance to affect the issue finality of an approval under 10 CFR part 52, ‘‘Licenses, Certifications, and Approvals for Nuclear Power Plants.’’ The staff also does not intend to use the guidance to support NRC staff actions in a manner that constitutes forward fitting as that term is defined and described in MD 8.4. If a licensee believes that the NRC is using this RG in a manner inconsistent with the discussion in this Implementation section, then the licensee may file a backfitting or forward fitting appeal with the NRC in accordance with the process in MD 8.4. IV. Submitting Suggestions for Improvement of Regulatory Guides A member of the public may, at any time, submit suggestions to the NRC for improvement of existing RGs or for the development of new RGs. Suggestions can be submitted on the NRC’s public website at https://www.nrc.gov/reading- VerDate Sep<11>2014 17:50 Dec 12, 2024 Jkt 265001 rm/doc-collections/reg-guides/ contactus.html. Suggestions will be considered in future updates and enhancements to the ‘‘Regulatory Guide’’ series. Dated: December 10, 2024. For the Nuclear Regulatory Commission. Harriet Karagiannis, Acting Chief, Regulatory Guide and Programs Management Branch, Division of Engineering, Office of Nuclear Regulatory Research. [FR Doc. 2024–29418 Filed 12–12–24; 8:45 am] BILLING CODE 7590–01–P CONSUMER FINANCIAL PROTECTION BUREAU 12 CFR Part 1022 [Docket No. CFPB–2024–0057] Fair Credit Reporting Act (Regulation V); Identity Theft and Coerced Debt Consumer Financial Protection Bureau. ACTION: Advance notice of proposed rulemaking. AGENCY: The Consumer Financial Protection Bureau (CFPB) is seeking information in advance of preparing a proposed rule to address concerns related to information furnished to credit bureaus and other consumer reporting agencies concerning coerced debt. More specifically, this advance notice of proposed rulemaking solicits information on amending the definitions of ‘‘identity theft’’ and ‘‘identity theft report’’ in Regulation V, which implements the Fair Credit Reporting Act, as well as other related amendments to Regulation V, to include information stemming from transactions that occurred without the consumer’s effective consent. DATES: Comments must be received by March 7, 2025. ADDRESSES: You may submit responsive information and other comments, identified by Docket No. CFPB–2024– 0057 by any of the following methods: • Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments. • Email: ANPR-Coerced-Debt@ cfpb.gov. Include Docket No. CFPB– 2024–0057 in the subject line of the message. • Mail/Hand Delivery/Courier: Comment Intake—Identity Theft and Coerced Debt, c/o Legal Division Docket Manager, Consumer Financial Protection Bureau, 1700 G Street NW, Washington, DC 20552. Instructions: The CFPB encourages the early submission of comments. All SUMMARY: PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 submissions should include the agency name and docket number. Because paper mail is subject to delay, commenters are encouraged to submit comments electronically. In general, all comments received will be posted without change to https:// www.regulations.gov. All submissions, including attachments and other supporting materials, will become part of the public record and subject to public disclosure. Proprietary information or sensitive personal information, such as account numbers or Social Security numbers, or names of other individuals, should not be included. Submissions will not be edited to remove any identifying or contact information. FOR FURTHER INFORMATION CONTACT: George Karithanom, Regulatory Implementation & Guidance Program Analyst, Office of Regulations, at 202– 435–7700 or at: https:// reginquiries.’ consumer’ finance.gov/. If you require this document in an alternative electronic format, please contact CFPB_Accessibility@cfpb.gov. SUPPLEMENTARY INFORMATION: I. Background On February 16, 2022, the Consumer Financial Protection Bureau (CFPB) announced updated procedures on how the public can submit petitions for rulemaking.1 The procedures enable members of the public to request issuance, modification, or repeal of a regulation. In general, the CFPB posts these petitions publicly and solicits public comment on those petitions. On August 5, 2024, the CFPB posted to regulations.gov a petition for rulemaking from the National Consumer Law Center and the Center for Survivor Agency and Justice seeking the amendment of Regulation V, which implements the Fair Credit Reporting Act (Docket CFPB–2024–0037–0001).2 The petition requested amendments to Regulation V that would enable persons with coerced debt to avail themselves of identity theft protections under the Fair Credit Reporting Act. Specifically, the petition requested that the CFPB: • Modify the definition of ‘‘identity theft’’ to include ‘‘without effective consent’’ to provide relief for persons 1 Consumer Financial Protection Bureau, Consumer Financial Protection Bureau Launches New Way for the Public to Petition the Agency for Action (Feb. 16, 2022), https:// www.consumer’ finance.gov/about-us/newsroom/ cfpb-launches-new-way-for-the-public-to-petitionthe-agency-for-action/. 2 National Consumer Law Center, Petition for Rulemaking to Amend Identity Theft Definitions in the Fair Credit Reporting Act (Regulation V) (Aug. 5, 2024), https://www.regulations.gov/document/ CFPB-2024-0037-0001. E:\FR\FM\13DEP1.SGM 13DEP1 khammond on DSK9W7S144PROD with PROPOSALS Federal Register / Vol. 89, No. 240 / Friday, December 13, 2024 / Proposed Rules with coerced debt and specify what constitutes effective consent. • Modify the definition of ‘‘identity theft report’’ to reflect the modified definition of ‘‘identity theft.’’ • Allow the modified definition of ‘‘identity theft’’ to enable persons with coerced debt to utilize the block of information resulting from identity theft. • Clarify that no consumer reporting agency (CRA), including specialty CRAs, can refuse to block information under 15 U.S.C. 1681c–2(c)(1)(C) if the consumer is a person with coerced debt. The petition highlighted how economic abuse, and particularly coerced debt, can cause serious and lasting harm for survivors of domestic violence and others. The petition cited research showing that between 94 and 99 percent of survivors of intimate partner violence have experienced economic abuse.3 Further, the petition emphasized how economic abuse can have lasting impacts on survivors of that abuse. Commenters on the petition also noted that studies show that a majority of survivors of domestic violence remained longer in abusive relationships in part because of their coerced debt, that a significant portion of survivors reported harm to their credit scores due to the actions of abusive partners, and that a significant portion of survivors who were successful in removing coerced debt from their credit files experienced significant increases to their credit scores. Commenters cited research showing that survivors of color experienced especially acute harm as a result of coerced debt. After a review of the petition and comments received on the petition, the CFPB has determined that a rulemaking is warranted and will issue a proposed rule. The evidence contained in the petition and comments received on the petition persuasively suggest that amending Regulation V to specifically account for coercion, and absence of effective consent, in the definition of identity theft could enable survivors to regain control of their financial lives and further their physical safety and independence from abusers. The CFPB has also preliminarily determined that addressing this issue is well within the statutory authority of the CFPB to define 3 Adams, A.E. et al., Development of the scale of economic abuse, 14 Violence Against Women 563 (2008). Postmus, J.L. et al., Understanding economic abuse in the lives of survivors, 27 J. of Interpersonal Violence 411 (2011). VerDate Sep<11>2014 17:50 Dec 12, 2024 Jkt 265001 ‘‘identity theft.’’ 4 The CFPB notes that victims of coerced debt can include people in a range of abusive relationships, including children and survivors of elder abuse. The CFPB has engaged in similar rulemakings in the past under the Debt Bondage Repair Act. In 2022, the CFPB finalized a rule to prohibit consumer reporting agencies from providing consumer reports that contain any negative item of information about a survivor of human trafficking that resulted from the trafficking.5 In addition to the record provided by the comments responding to the petition, the CFPB now seeks additional comment from the public to provide further information to facilitate the preparation of a proposed rule. The CFPB welcomes comment on all aspects of this advance notice of proposed rulemaking from all interested parties including survivors of coerced debt and their advocates, consumers, consumer advocacy groups, legal services providers, social service agencies, academic researchers, consumer reporting agencies, other industry members or trade groups, and any other members of the public. II. Questions 1. What information exists regarding the prevalence and extent of harms to victims of economic abuse, particularly coerced debt? How does the consumer reporting system, including provisions relating to identity theft, currently contribute to or reduce those harms? 2. To what extent do protections under the FCRA or other Federal or State laws exist for victims of economic abuse with respect to consumer reporting information? What barriers exist that may prevent survivors of economic abuse from availing themselves of existing protections? 3. Does coerced debt reflect the survivor’s credit risk independent of the abuser? Why or why not? Is there any data addressing the relevance of coerced debt to the survivor’s credit risk independent of the abuser? 4. What are the costs and benefits of the proposed amendment outlined by the petition for rulemaking? 5. The petition defines ‘‘coerced debt’’ as ‘‘all non-consensual, credit-related transactions that occur in a relationship 4 See 15 U.S.C. 1681a(q)(3) (expressly authorizing the CFPB to ‘‘further defin[e] . . . by regulation’’ the term ‘‘identity theft’’). 5 Consumer Financial Protection Bureau, CFPB Helps Survivors Mitigate the Financial Consequences of Human Trafficking (Jun. 23, 2022), https://www.consumer’ finance.gov/about-us/ newsroom/cfpb-helps-survivors-mitigate-thefinancial-consequences-of-human-trafficking/. PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 100923 where one person uses coercive control to dominate the other person.’’ What alternatives to that language should the CFPB consider? 6. Comments to the petition identify survivors of intimate partner violence, domestic abuse, and gender-based violence as groups that would benefit from explicit inclusion of coerced debt as a form of identity theft. Commenters noted specific vulnerabilities for older Americans, children in foster care, and survivors of color. a. What barriers do these groups face as a result of coerced debt? b. How would the proposed amendments outlined in the petition for rulemaking reduce those barriers? c. Are there other populations who experience problems with coerced debt and whose experiences should be considered in the proposed rulemaking? d. How would the proposed amendments outlined in the petition for rulemaking address the needs of these other populations? 7. Should the CFPB propose the amendments outlined by the petition for rulemaking? What alternatives should the CFPB consider? For instance: a. What documentation should a person be required to produce to show that their debt was coerced? b. What self-attestation mechanisms could be considered for meeting the standard for an identity theft report? c. Are there circumstances that should give rise to a presumption of coercion? d. Should the CFPB propose general protections related to coerced debt, specific protections for survivors of domestic or intimate partner violence, or a combination? Rohit Chopra, Director, Consumer Financial Protection Bureau. [FR Doc. 2024–29292 Filed 12–12–24; 8:45 am] BILLING CODE 4810–AM–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2024–2554; Project Identifier MCAI–2024–00492–T] RIN 2120–AA64 Airworthiness Directives; Airbus Canada Limited Partnership (Type Certificate Previously Held by C Series Aircraft Limited Partnership (CSALP); Bombardier, Inc.) Airplanes Federal Aviation Administration (FAA), DOT. AGENCY: E:\FR\FM\13DEP1.SGM 13DEP1

Agencies

  • CONSUMER FINANCIAL PROTECTION BUREAU
[Federal Register Volume 89, Number 240 (Friday, December 13, 2024)]
[Proposed Rules]
[Pages 100922-100923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-29292]


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CONSUMER FINANCIAL PROTECTION BUREAU

12 CFR Part 1022

[Docket No. CFPB-2024-0057]


Fair Credit Reporting Act (Regulation V); Identity Theft and 
Coerced Debt

AGENCY: Consumer Financial Protection Bureau.

ACTION: Advance notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Consumer Financial Protection Bureau (CFPB) is seeking 
information in advance of preparing a proposed rule to address concerns 
related to information furnished to credit bureaus and other consumer 
reporting agencies concerning coerced debt. More specifically, this 
advance notice of proposed rulemaking solicits information on amending 
the definitions of ``identity theft'' and ``identity theft report'' in 
Regulation V, which implements the Fair Credit Reporting Act, as well 
as other related amendments to Regulation V, to include information 
stemming from transactions that occurred without the consumer's 
effective consent.

DATES: Comments must be received by March 7, 2025.

ADDRESSES: You may submit responsive information and other comments, 
identified by Docket No. CFPB-2024-0057 by any of the following 
methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include Docket No. 
CFPB-2024-0057 in the subject line of the message.
     Mail/Hand Delivery/Courier: Comment Intake--Identity Theft 
and Coerced Debt, c/o Legal Division Docket Manager, Consumer Financial 
Protection Bureau, 1700 G Street NW, Washington, DC 20552.
    Instructions: The CFPB encourages the early submission of comments. 
All submissions should include the agency name and docket number. 
Because paper mail is subject to delay, commenters are encouraged to 
submit comments electronically. In general, all comments received will 
be posted without change to https://www.regulations.gov.
    All submissions, including attachments and other supporting 
materials, will become part of the public record and subject to public 
disclosure. Proprietary information or sensitive personal information, 
such as account numbers or Social Security numbers, or names of other 
individuals, should not be included. Submissions will not be edited to 
remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: George Karithanom, Regulatory 
Implementation & Guidance Program Analyst, Office of Regulations, at 
202-435-7700 or at: https://reginquiries.' consumer' finance.gov/. If 
you require this document in an alternative electronic format, please 
contact [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    On February 16, 2022, the Consumer Financial Protection Bureau 
(CFPB) announced updated procedures on how the public can submit 
petitions for rulemaking.\1\ The procedures enable members of the 
public to request issuance, modification, or repeal of a regulation. In 
general, the CFPB posts these petitions publicly and solicits public 
comment on those petitions. On August 5, 2024, the CFPB posted to 
regulations.gov a petition for rulemaking from the National Consumer 
Law Center and the Center for Survivor Agency and Justice seeking the 
amendment of Regulation V, which implements the Fair Credit Reporting 
Act (Docket CFPB-2024-0037-0001).\2\ The petition requested amendments 
to Regulation V that would enable persons with coerced debt to avail 
themselves of identity theft protections under the Fair Credit 
Reporting Act. Specifically, the petition requested that the CFPB:
---------------------------------------------------------------------------

    \1\ Consumer Financial Protection Bureau, Consumer Financial 
Protection Bureau Launches New Way for the Public to Petition the 
Agency for Action (Feb. 16, 2022), https://www.consumer' 
finance.gov/about-us/newsroom/cfpb-launches-new-way-for-the-public-to-petition-the-agency-for-action/.
    \2\ National Consumer Law Center, Petition for Rulemaking to 
Amend Identity Theft Definitions in the Fair Credit Reporting Act 
(Regulation V) (Aug. 5, 2024), https://www.regulations.gov/document/CFPB-2024-0037-0001.
---------------------------------------------------------------------------

     Modify the definition of ``identity theft'' to include 
``without effective consent'' to provide relief for persons

[[Page 100923]]

with coerced debt and specify what constitutes effective consent.
     Modify the definition of ``identity theft report'' to 
reflect the modified definition of ``identity theft.''
     Allow the modified definition of ``identity theft'' to 
enable persons with coerced debt to utilize the block of information 
resulting from identity theft.
     Clarify that no consumer reporting agency (CRA), including 
specialty CRAs, can refuse to block information under 15 U.S.C. 1681c-
2(c)(1)(C) if the consumer is a person with coerced debt.
    The petition highlighted how economic abuse, and particularly 
coerced debt, can cause serious and lasting harm for survivors of 
domestic violence and others. The petition cited research showing that 
between 94 and 99 percent of survivors of intimate partner violence 
have experienced economic abuse.\3\ Further, the petition emphasized 
how economic abuse can have lasting impacts on survivors of that abuse. 
Commenters on the petition also noted that studies show that a majority 
of survivors of domestic violence remained longer in abusive 
relationships in part because of their coerced debt, that a significant 
portion of survivors reported harm to their credit scores due to the 
actions of abusive partners, and that a significant portion of 
survivors who were successful in removing coerced debt from their 
credit files experienced significant increases to their credit scores. 
Commenters cited research showing that survivors of color experienced 
especially acute harm as a result of coerced debt.
---------------------------------------------------------------------------

    \3\ Adams, A.E. et al., Development of the scale of economic 
abuse, 14 Violence Against Women 563 (2008).
    Postmus, J.L. et al., Understanding economic abuse in the lives 
of survivors, 27 J. of Interpersonal Violence 411 (2011).
---------------------------------------------------------------------------

    After a review of the petition and comments received on the 
petition, the CFPB has determined that a rulemaking is warranted and 
will issue a proposed rule. The evidence contained in the petition and 
comments received on the petition persuasively suggest that amending 
Regulation V to specifically account for coercion, and absence of 
effective consent, in the definition of identity theft could enable 
survivors to regain control of their financial lives and further their 
physical safety and independence from abusers. The CFPB has also 
preliminarily determined that addressing this issue is well within the 
statutory authority of the CFPB to define ``identity theft.'' \4\ The 
CFPB notes that victims of coerced debt can include people in a range 
of abusive relationships, including children and survivors of elder 
abuse. The CFPB has engaged in similar rulemakings in the past under 
the Debt Bondage Repair Act. In 2022, the CFPB finalized a rule to 
prohibit consumer reporting agencies from providing consumer reports 
that contain any negative item of information about a survivor of human 
trafficking that resulted from the trafficking.\5\
---------------------------------------------------------------------------

    \4\ See 15 U.S.C. 1681a(q)(3) (expressly authorizing the CFPB to 
``further defin[e] . . . by regulation'' the term ``identity 
theft'').
    \5\ Consumer Financial Protection Bureau, CFPB Helps Survivors 
Mitigate the Financial Consequences of Human Trafficking (Jun. 23, 
2022), https://www.consumer' finance.gov/about-us/newsroom/cfpb-helps-survivors-mitigate-the-financial-consequences-of-human-trafficking/.
---------------------------------------------------------------------------

    In addition to the record provided by the comments responding to 
the petition, the CFPB now seeks additional comment from the public to 
provide further information to facilitate the preparation of a proposed 
rule. The CFPB welcomes comment on all aspects of this advance notice 
of proposed rulemaking from all interested parties including survivors 
of coerced debt and their advocates, consumers, consumer advocacy 
groups, legal services providers, social service agencies, academic 
researchers, consumer reporting agencies, other industry members or 
trade groups, and any other members of the public.

II. Questions

    1. What information exists regarding the prevalence and extent of 
harms to victims of economic abuse, particularly coerced debt? How does 
the consumer reporting system, including provisions relating to 
identity theft, currently contribute to or reduce those harms?
    2. To what extent do protections under the FCRA or other Federal or 
State laws exist for victims of economic abuse with respect to consumer 
reporting information? What barriers exist that may prevent survivors 
of economic abuse from availing themselves of existing protections?
    3. Does coerced debt reflect the survivor's credit risk independent 
of the abuser? Why or why not? Is there any data addressing the 
relevance of coerced debt to the survivor's credit risk independent of 
the abuser?
    4. What are the costs and benefits of the proposed amendment 
outlined by the petition for rulemaking?
    5. The petition defines ``coerced debt'' as ``all non-consensual, 
credit-related transactions that occur in a relationship where one 
person uses coercive control to dominate the other person.'' What 
alternatives to that language should the CFPB consider?
    6. Comments to the petition identify survivors of intimate partner 
violence, domestic abuse, and gender-based violence as groups that 
would benefit from explicit inclusion of coerced debt as a form of 
identity theft. Commenters noted specific vulnerabilities for older 
Americans, children in foster care, and survivors of color.
    a. What barriers do these groups face as a result of coerced debt?
    b. How would the proposed amendments outlined in the petition for 
rulemaking reduce those barriers?
    c. Are there other populations who experience problems with coerced 
debt and whose experiences should be considered in the proposed 
rulemaking?
    d. How would the proposed amendments outlined in the petition for 
rulemaking address the needs of these other populations?
    7. Should the CFPB propose the amendments outlined by the petition 
for rulemaking? What alternatives should the CFPB consider? For 
instance:
    a. What documentation should a person be required to produce to 
show that their debt was coerced?
    b. What self-attestation mechanisms could be considered for meeting 
the standard for an identity theft report?
    c. Are there circumstances that should give rise to a presumption 
of coercion?
    d. Should the CFPB propose general protections related to coerced 
debt, specific protections for survivors of domestic or intimate 
partner violence, or a combination?

Rohit Chopra,
Director, Consumer Financial Protection Bureau.
[FR Doc. 2024-29292 Filed 12-12-24; 8:45 am]
BILLING CODE 4810-AM-P
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