Consumer Financial Protection Bureau Announces Proposed Rulemaking Aimed at Financial Institutions
The Consumer Financial Protection Bureau (CFPB) recently announced options to strengthen consumer control over financial data by issuing a rulemaking procedure under Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The CFPB implements and enforces federal consumer financial laws and ensures that markets for consumer financial products are fair, transparent, and competitive.
Under the options the CFPB is considering, consumers would be able to more easily and safely walk away from financial institutions (banks, credit unions, savings associations, or similar organizations) and opt for competing products and services.
The CFPB is also considering proposals that would include important options relating to or governing privacy for personal financial data for third-party users, including limitations that would prevent third parties from reselling certain data to other users.
The CFPB’s rule would require firms to make a consumer’s financial information available to them or a third party at that consumer’s direction. Under the proposed rule, the following categories of information will be made available:
- Periodic statement information regarding transactions and deposits that have been settled, including fees, account terms and conditions, and the annual percentage yield of an asset account or the annual percentage rate of a credit card account;
- Information regarding prior transactions and deposits that have not yet settled;
- Information about prior transactions not typically shown on periodic statements or online financial account management portals;
- Online banking transactions that the consumer has set up but that have not yet occurred;
- Account identity information; and
- Other information, including consumer reports obtained and used by the covered data provider in deciding whether to provide an account or other financial product or service to a consumer; fees that the covered data provider assesses on its consumer accounts; bonuses, rewards, discounts, or other incentives that the covered data provider gives to consumers; and information about security breaches that exposed a consumer’s identity or financial information.
In addition, the retention of consumer financial information and collection are also addressed in the CFPB proposal.
The rulemaking process includes panel discussions to seek feedback from the affected entities on the proposals under consideration. Stakeholders may provide written feedback by visiting the CFPB’s website by clicking here.
Help is available
The attorneys at O’Reilly Rancilio are available to answer your questions regarding the proposed rulemaking. To learn more, please call 586-726-1000 or visit our website.