CFPB Outlines Sources and Uses of Data Collection
Commentary by Steven Lofchie
In a report on data collection, the Consumer Financial Protection Bureau ("CFPB") provided information on the agency's processes for collecting and using data. Among other examples, the report noted the CFPB's use of data from its study of lending for the purchase of automobiles.
To evaluate whether changes to the Data Collection processes are necessary, the CFPB separately requested comment on the "overall efficiency and effectiveness" of its processes.
Commentary
The CFPB's use of data in its study of financing of automobile purchases was heavily criticized. See Republican Members of the House of Financial Services Committee Allege that CFPB Used "Aggressive Efforts" against Vehicle Financing Business. Accordingly, this may be an effort to formalize the CFPB's use of data so that its researchers are not tempted to pick the methodology that yields a desired result.