White House Withdraws Rule to Regulate Data Brokers Under Fair Credit Reporting Act

The White House, under the Trump administration, has canceled a proposed rule that would have required data brokers to comply with the Fair Credit Reporting Act (FCRA), effectively blocking them from selling Americans’ sensitive personal and financial data, including Social Security numbers. The Consumer Financial Protection Bureau (CFPB) had announced in December 2024 its intention to close a loophole that exempted data brokers from the FCRA’s privacy protections. However, the rule was withdrawn in May 2025 by acting CFPB director Russell Vought, who also serves as the White House Office of Management and Budget director, citing that the rule did not align with the Bureau’s current interpretation of the law. Data brokers operate a multi-billion dollar industry, collecting and selling vast amounts of personal data often without individuals’ explicit consent. This practice has raised significant privacy concerns, especially after multiple data breaches exposed millions of Social Security numbers and location data. Privacy advocates have pushed for stronger regulation using the FCRA, while industry groups like the Financial Technology Association argued the rule could hinder financial institutions’ fraud prevention efforts. The CFPB has not commented on the withdrawal. This decision highlights ongoing tensions between privacy protections and industry interests in the regulation of personal data.