Representatives Urge CFPB to Revise Proposed Rule to Loosen Restrictions on Data Usage

A bipartisan group of House representatives urged revisions to the CFPB proposed "Personal Financial Data Rights" rule, which would require financial institutions to share consumer data with authorized parties.

In a letter to CFPB Director Rohit Chopra, the representatives expressed support for the overall goal of enhancing consumer data privacy and control. They argued, however, that "significant restrictions on the secondary use of data could discourage the advancement of innovations that benefit consumers and small businesses by curbing basic product improvements and the development of tools to fight fraud." The representatives also argued that overly restrictive data use rules could hinder the creation of products that help underserved communities gain access to credit.

The representatives urged the agency to revise the rule to allow more flexibility in data use, while maintaining privacy safeguards, such as data minimization and de-identification.