October 21, 2016

NAFCU questions need for public info request changes

NAFCU on Friday questioned why the CFPB needs to change its procedures relating to information requests made by the public through the Freedom of Information Act, the Privacy Act and in legal proceedings.

NAFCU Regulatory Affairs Counsel Andrew Morris noted the Dodd-Frank Act clearly intends to restrict the CFPB's discretionary power to share confidential information with other agencies.

"NAFCU asks that the Bureau clarify what type of cooperation it seeks to enable with its new rule that did not exist previously," Morris wrote in the Friday letter. "For example, why is the Bureau's current authority under 12 CFR § 1070.43 inadequate to serve operational goals, and why is enhanced discretion to share this information with a broadly defined class of agencies necessary? The Bureau mentions impediments to cooperation with other agencies—yet offers no specific examples."

Morris emphasized NAFCU's belief that confidential information collected from credit unions by the CFPB should not be shared with any agency other than the NCUA, and he urged the bureau not to share any confidential information unnecessarily.

NAFCU has repeatedly raised concerns about CFPB's collection and storage of personally identifiable information and information that could be reverse-engineered to identify individuals.

NAFCU was the only financial services trade association to oppose subjecting credit unions to CFPB authority under Dodd-Frank.