CFPB issues advisory on permissible data sharing

The U.S. Consumer Financial Protection Bureau published an advisory reaffirming companies handling personal data in credit reports and background reports must do so with "permissible purpose" under the Fair Credit Reporting Act. The permissible purpose rule prohibits personal information checks in financial records "without a bona fide reason." CFPB Director Rohit Chopra said the rule and other regulatory tools under the FCRA will be used to "combat misuse and abuse of personal data on background screening and credit reports." Meanwhile, CFPB plans to hire 25 technologists over the next year.