Gallego is raising the alarm after the CFPB quietly canceled a rule to prevent Americans’ personal data from being sold without their consent
WASHINGTON – Senator Ruben Gallego (D-AZ) is demanding action to prevent Americans’ private, personal data from being collected and sold without their consent. In a letter to Acting Director of the Consumer Financial Protection Bureau (CFPB) Russell Vought, Senator Gallego criticizes the Bureau for withdrawing a proposed rule titled Protecting Americans from Harmful Data Broker Practices.
The proposed rule, issued in December 2024 under former Director Rohit Chopra, would have clarified that data brokers trafficking in Americans’ personal information are subject to the Fair Credit Reporting Act (FCRA) and must obtain consumer consent before selling or sharing sensitive data – including financial information, Social Security numbers, and income data.
“This rollback is deeply troubling. Americans’ most personal information, including real-time location data, private affiliations, and financial records, is being collected, repackaged, and sold without their knowledge or consent,” Senator Gallego wrote. “Data brokers make this intimate personal information available for sale on the open market, exposing individuals to scams, surveillance, threats, and reputational harm at the hands of bad actors.”
He continues, “the harms are not hypothetical. […] In one instance, a data broker provided data on 30 million individuals to entities later implicated in fraudulent schemes. In another, a company acknowledged its role in facilitating over $9.5 million in losses stemming from senior-targeted scams. More recently, a breach at data brokerage firm reportedly exposed the location histories of elected officials and U.S. military personnel.”
Senator Gallego also expressed concern that the rule’s withdrawal comes at a time when the CFPB’s capacity to protect consumers has been radically diminished. Just last month, 1,400 CFPB employees were terminated – leaving the agency with only 300 staff members.
“I urge you to reconsider the withdrawal of this rule and to recommit to the Bureau’s foundational mission,” the Senator concludes. “The American people cannot afford a regulatory vacuum that allows private actors to exploit their data with impunity. If the Bureau will not act, Congress must.”
Read the full letter HERE.
5/16/25