CFPB Proposes Rule on Consumer Authorized Access to Financial Data
The CFPB proposed a rule to implement Section 1033 of the Consumer Financial Protection Act of 2010 (Dodd-Frank Title X) on consumer-authorized access to financial data, including "data about their use of checking and prepaid accounts, credit cards, and digital wallets." The proposed rule would enable consumers to move their financial information more easily between financial institutions.
The proposal would require data providers - including "financial institutions" as defined in Regulation E ("Exemption for Securities of Small Business Investment Companies") and "card issuers" as defined in Regulation Z ("Truth in Lending") - to make available to consumers and authorized third parties covered data regarding consumer transactions and accounts. Data providers would also be required to establish a consumer and developer interface as well as written policies reasonably designed to facilitate access to the consumer information.
The CFPB stated that the proposal is intended to:
- provide consumers with control over their financial data and protection against "misuse" of their data by companies; and
- stimulate competition by prohibiting financial institutions from "hoarding a person's data" through mandating that companies share data at the person's direction with other companies offering superior products.
Comments on the proposal must be submitted by December 29, 2023.
Available only to Premium subscribers.