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Congressmen write to CFPB opposing data collection proposal
Last week, Sen. Tim Scott, R-S.C., and Rep. William Timmons, R-S.C., sent a letter to CFPB Director Rohit Chopra to oppose the bureau's section 1071 proposed rule regarding data collection. NAFCU earlier this month sent the bureau a letter to offer recommendations and warn that the inaccurate visual observations of sensitive data would not only threaten the integrity of other valuable section 1071 data, but would also add unnecessary friction to small business relationships and give rise to avoidable, unreasonable fair lending risks.
In the letter, the congressmen urged the bureau to "change course."
"We feel that the CFPB has failed to take the appropriate steps to engage with these institutions on this proposed rule, and by doing so, we believe that the Bureau has fashioned a rule that would hurt not only these lending institutions, but American farmers themselves,” wrote Scott and Timmons in their letter. “In short, we feel that these actions being proposed by the CFPB are misguided and ill-informed, especially considering the challenges that farmers are currently facing due to rising inflation, prolonged supply chain disruptions, and labor shortages."
NAFCU will continue to monitor movement on the bureau's proposal and will advocate to ensure lawmakers hear the credit union perspective on this issue. View NAFCU’s Regulatory Alert on the proposed rule for more information.