The American Bankers Association today urged the Consumer Financial Protection Bureau to “tread carefully” when drafting proposed data sharing rules for businesses, warning that the agency could stifle innovation and put the personal financial data of individuals at risk. consumers if you introduce impractical requirements.
The CFPB last year outlined a series of proposals under consideration to implement Section 1033 of the Dodd-Frank Act, which requires businesses to make a consumer’s financial information available to them or to a third party at the consumer’s direction. in a letter To CFPB director Rohit Chopra, the ABA said the rules the agency develops could foster innovation and improve the lives of consumers, or could prove so unwieldy that they jeopardize the privacy and security of consumers’ financial data. consumers. The association said the CFPB should stick to the letter and spirit of the text of Section 1033 “keeping in mind that future rules do not undermine the good work that has been accomplished organically by a cross-sector group of financial institutions, fintechs, and data aggregators.” data. ”
The ABA noted that its members have expressed concern that the agency’s proposed scheme does not adequately address data security, fraud and liability, and that many small and medium-sized banks are unaware of the effects the rule would have had once implemented. . The association also advocated for the CFPB to cultivate a level playing field among all companies operating in the personal financial data sharing ecosystem. Last year, ABA and other trade groups petitioned the CFPB to initiate a rulemaking to define the “largest players” in the data aggregation services market that should be subject to the agency’s ongoing monitoring for compliance. the rule when final.
“We urge the CFPB to recognize the deep complexities at the heart of personal financial data rights and the need to strike a harmonious balance between the interests of consumers and a workable construct for businesses operating in this space,” ABA said. .
