October 29, 2020

Reg Alert details CFPB ANPR on consumer access to financial records

cfpbIn a new Regulatory Alert, NAFCU details the CFPB's recent advance notice of proposed rulemaking (ANPR) gathering input on how it should implement section 1033 of the Dodd-Frank Act. Section 1033 provides for consumer rights to access financial records.

NAFCU has previously recommended that the CFPB explore questions around permissioned data access by focusing on the security of consumers' information and should not create new data-collection burdens and costs for credit unions.

Through the Regulatory Alert, NAFCU highlights:

  • The bureau’s authority to promulgate certain technical specifications, which could grant data aggregators and other companies an entry point for collecting valuable information about the financial habits of credit union members; and
  • The bureau’s request for information regarding the possible scope of data that might be made subject to protected access, as well as information that might bear on other terms of access, such as those relating to security, privacy, effective consumer control over access and accessed data, and accountability for data errors and unauthorized access.

In addition, the association notes that a section 1033 rulemaking could potentially expose credit unions to greater competitive pressure from fintech companies, entail greater data security risks, and introduce new burdens related to managing third party access.

For more on the ANPR, including an in-depth section-by-section analysis, view the Regulatory Alertsubscribe to receive Regulatory Alerts. Comments are due to NAFCU Jan. 12, 2021; comments are due to the CFPB 90 days after publication in the Federal Register.

NAFCU will continue to work with the bureau on its efforts to balance consumer protections while ensuring a reasonable regulatory environment for credit unions.