```

[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]

=======================================================================
-----------------------------------------------------------------------

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
```