February 24, 2025
Mr. Scott Bessent
Acting Director
Consumer Financial Protection Bureau
1700 G St NW,
Washington, DC 20552
Submitted via regulations.gov
RE: Consumer Financial Protection Bureau’s “Protecting Americans from Harmful Data Broker Practices (Regulation V)” 12 CFR Part 1022 (December 03, 2024) [CFPB-2024-0044; RIN 3170-AB27
Acting Director Bessent:
Thank you for the opportunity to comment on this proposed rule. The National Council of Investigation & Security Services (NCISS) is a non-profit organization founded in 1986 representing the interests of security and investigation businesses before Congress and the Administration. NCISS is committed to protecting the rights of its members and ensuring their voices are heard in Washington on critical issues affecting the security and investigations professions. On behalf of NCISS and its members, we are pleased to provide comments on CFPB Docket No. CFPB-2024-0044.
As CFPB drafts its Advance Notice of Proposed Rulemaking (ANPRM) regarding whether credit header information should be considered a consumer report, we strongly encourage you to consider private investigative and security professionals in your review. Nearly all professional investigators utilize “data brokers” for their investigations. It is imperative that we use these resources to ensure we are conducting investigations on the correct person. Since many individuals share the same name, private investigators and security professionals need to connect additional identifiers to accurately profile the correct individual.
Professional investigators have a direct role in the court systems and administration of justice. They work for attorneys, courts, companies, and private clients to ensure that all the information is discovered to make important decisions. These unbiased factfinders are used in court cases every day and are essential to ensure both sides have a fair trial. Private investigators have an important role in society to help protect people from fraud, unfair business practices, personal injury matters, auto accident claims, and help locate missing persons.
These databases are used in a wide range of cases. They are vital to locating witnesses, protecting victims, alerting businesses to vital information, and resolving claims. These databases are used by law enforcement for all the same reasons. But law enforcement does not handle all investigative needs. Therefore, these resources need to be accessible to private investigators for lawful purposes as well. We believe privacy can be protected and misuses curtailed with reasonable safeguards, short of outright bans.
I. Applications of Database Information in Investigations
Database information is vital for various essential aspects of investigations. These include locating missing persons, such as children, delinquent debtors, bail skippers, and parents evading responsibilities, as well as tracking individuals who avoid legal obligations, or service of process. Given the absence of white pages for cell phone numbers, databases provide crucial indications of phone numbers and emails that individuals have used or been associated with, enabling contact. Additionally, database information is indispensable for legal and insurance investigations, allowing investigators to efficiently locate and communicate with necessary individuals. This information is fundamental for conducting thorough and effective investigations in the security and private investigation industries.
A primary use of data brokers is to uncover fraud. Professional investigators rely on databases as a starting point for most, if not all, of their fraud investigations. Access to comprehensive data sets allows investigators to identify indicators of fraudulent activities, trace perpetrators, and gather critical evidence to support their findings. Without the use of data broker information, the ability to uncover and combat fraud would be severely hampered.
Other compiled data within database sets frequently accessed by investigators include business ownership information, property records, indications of outstanding liabilities, and various other pieces of information that can be used to cross-reference for advanced investigation. When attempting to locate heirs for an estate matter, databases are instrumental in creating a family tree, thereby assisting in the identification and contact of the appropriate individuals.
II. Cost-Effectiveness and Efficiency
Databases significantly enhance the cost-effectiveness and efficiency of our private investigation work. For example, when focusing our research on various background and asset investigations, we must search and confirm court records and property ownership at the county level. Without databases indicating where a person has lived over time, it would be necessary to search every county in every state to identify court records at each courthouse, or property ownership through county assessor’s offices, which is cost-prohibitive in most scenarios. The same principle applies to identifying business affiliations, as data brokers connect these affiliations to the person of interest, allowing us to go directly to the source to confirm our research and complete our investigation.
This enhanced efficiency significantly reduces the time and resources needed to gather accurate and comprehensive information. By leveraging databases, we can quickly access relevant data, cross-reference information, and obtain a holistic view of the individual or entity we are investigating. It is important to gather all the pieces to a puzzle to form an accurate depiction of a person or situation for educated decision making of clients. This efficiency not only saves costs but also ensures that our investigations are thorough, accurate, and timely. In an industry where time is of the essence, the ability to swiftly and effectively gather and analyze information is paramount to our success.
III. Ensuring Compliance and Screening
Private investigators (PIs) extensively utilize and require access to data broker information for a multitude of legitimate purposes. To ensure compliance, we strictly adhere to the requirements of the Gramm-Leach-Bliley (GLB) Act and the Driver's Privacy Protection Act (DPPA). This adherence guarantees that all information obtained is used ethically and within the legal framework.
For example, investigators must be properly licensed and insured, ensuring that they meet all professional standards and legal requirements. We also employ cross-cut shredders in our offices to securely dispose of confidential information, preventing any potential breaches of privacy. This comprehensive screening process underscores our commitment to using data broker information responsibly and in compliance with all relevant laws. It ensures that we maintain the highest standards of integrity and professionalism in our investigative work, thereby protecting both our clients and the individuals we investigate.
Furthermore, to gain access and establish accounts with data brokers, PIs undergo a rigorous screening process. This process includes several stringent measures to secure and protect the data we handle. For instance, we must provide proof of a secure office environment, which often includes physical security features such as a locking office and locking file cabinets to safeguard sensitive documents. Additionally, we implement cybersecurity measures, such as password-protected computers, to protect electronic data from unauthorized access and have data security protocol in place.
IV. Conclusion
In conclusion, while NCISS recognizes the CFPB’s intent to protect consumers from harmful data broker practices, we must emphasize the unintended consequences that this proposed rule may have on private investigators and security professionals. The regulation, as currently drafted, would severely inhibit the capability of private investigators and security professionals to conduct their business effectively and protect society. The restriction on accessing comprehensive data broker information would impede our ability to accurately identify individuals, uncover fraud, locate missing persons, and conduct thorough, necessary investigations.
The proposed rule's limitations on the use of data broker information could lead to significant delays and increased costs, ultimately hindering our mission to protect the public and ensure justice. Without access to these vital resources, the efficiency and effectiveness of our investigations would be compromised, leaving us unable to provide the high level of service our clients and the public rely on.
We urge the CFPB to consider the critical role that data broker information plays in the investigation and security professions and to explore alternative measures that protect consumer privacy without undermining our ability to perform our essential functions. At the very least, ensure the wording of such bills does not inadvertently exclude us from doing our jobs or ensuring that our profession retains access to these vital data sources. We call for the CFPB to enact a policy that ensures consumer protection without compromising the tools essential for effective investigative and security work.
Sincerely,
Edward J. Ajaeb
President, NCISS