CFPB Announces Advance Noticed of Proposed Rulemaking on Consumer-Authorized Access to Financial Data


/assets/cfpb-announces-anpr-on-consumer-authorized-access-to-financial-data/cfpbmagnify-web.jpg

The bureau will solicit stakeholder input on consumer-authorized third-party access to financial records following February symposium.

7/24/2020 9:00

The Consumer Financial Protection Bureau is planning to issue an advance notice of proposed rulemaking (ANPR) later this year on consumer-authorized access to financial records, according to a news release. The announcement follows a symposium the bureau held earlier this year on the topic, which included experts from consumer groups, fintechs, trade associations, financial institutions and data aggregators. The bureau also released a summary report of the symposium proceedings.

The purpose of the bureau’s February symposium was to hear from stakeholders and to review the bureau’s approach to consumer-authorized third-party access to financial records, which has been largely identifying and promoting consumer interests—in access, control, security, privacy, and other areas—and allowing the market to develop without direct regulatory intervention. The ANPR will seek information that will help the bureau understand and address competing perspectives.

The ANPR will allow the bureau to:

  • Solicit stakeholder input on ways that the bureau might effectively and efficiently implement the financial access rights described in Section 1033 of the Dodd-Frank Act. Different market participants have helped authorized data access become more secure, effective, and subject to consumer control. The bureau expects these trends to continue, but also sees indications that some emerging market practices may not reflect the access rights described in Section 1033.
  • Seek information regarding the possible scope of data that might be made subject to protected access as well as information that might bear on other terms of access, such as those relating to security, privacy, effective consumer control over access and accessed data, and accountability for data errors and unauthorized access.
  • Inquire into whether—and if so, how—issues of regulatory uncertainty with respect to Section 1033 and its interaction with other statutes within the bureau’s jurisdiction, such as the Fair Credit Reporting Act, may be impacting this market to the potential detriment of consumers; and seek information that may help resolve such uncertainty.

In 2010, Congress authorized the bureau under Section 1033 of the Dodd-Frank Act to help ensure that consumers have access to and the ability to leverage the data in their records. Since enactment of Section 1033, the extent to which financial institutions, data aggregators and fintechs are using consumer-authorized access to provide new products and services to millions of American consumers has grown in scope and scale.

The CFPB also recently announced a symposium on the use of cost-benefit analysis in consumer financial protection regulation at 9:30 a.m. EDT, Wednesday, July 29, 2020. The event will be webcast on the bureau’s website.

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at [email protected]  or call (952) 926-6547.

This site uses cookies. By continuing to use our site, you are agreeing to our use of cookies. Review our Privacy Policy for more information. You may change your preferences on how cookies are stored by reviewing the settings on your browser.

The content on this site is presented for educational, general reference, and informational purposes only; is not intended to serve as legal or other advice; is not intended to be a full and exhaustive explanation of the law in any area; and should not replace the advice of your own legal counsel. By continuing to use our site, you are agreeing to the legal disclaimers in our Terms of Use. Review our Terms of Use for more information.

Friendly Reminder

Get continued access to ACA International’s wide array of resources, which can help you become more profitable, compliant and successful.

Renew your membership today to take advantage of tools you won’t find anywhere else:

  • Discounts on seminars, products, services and events
  • Resources to strengthen your compliance department
  • Industry-specific risk management products and services
  • Participation in ACA’s online community, The Hub
    Members-only website content
  • Professional development and training opportunities, and so much more!