CFPB Updates FCRA Consumer Disclosure Maximum

On November 27, 2019, the CFPB issued a final rule updating the maximum allowable charge a credit reporting agency may impose upon a consumer for certain disclosures of credit information.  FCRA allows credit reporting agencies to charge fees to consumers for specific disclosures of consumer’s credit information, however, such fees must be under the maximum “reasonable charges” the CFPB sets for credit reporting agencies.  Originally, credit reporting agencies could only charge a maximum fee of $8 under FCRA.  This amount has been continuously updated since 1997 pursuant to a requirement within the Act.  Section 612 of FCRA states that yearly updates occur “on January 1 of each year, based proportionally on changes in the Consumer Price Index, with fractional changes rounded to the nearest fifty cents.”   In 2019, consumer reporting agencies could charge a maximum of $12.50.  The CFPB’s new rule maintains the 2019 cap at $12.50.