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July 2, 2012 – A NAFCU-supported rule to codify protections for privileged information that regulated institutions provide the Consumer Financial Protection Bureau was finalized last week and takes effect 30 days after its publication in the Federal Register.

"We are committed to safeguarding the confidential information of the institutions we supervise to ensure the Bureau is best equipped to do its job and protect consumers," said CFPB Director Richard Cordray. "This new rule supports the free flow of information that is essential to an effective supervision program."

The rule was issued for comment in January. There are also identical bills in the House and Senate that would subject the CFPB to confidentiality requirements imposed on bank and credit union regulators established prior to the Dodd-Frank Act.

H.R. 4014 and S. 2099, both supported by NAFCU, would revise the Federal Deposit Insurance Act to clarify that information provided to the CFPB receives the same level of protection as information provided to financial institutions' prudential regulators, such as NCUA.

NAFCU is seeking passage of the legislation so the requirement for the CFPB to hold privileged information as confidential is a matter of law.