Article by Jillian S. Ambroz: “A federal agency is gearing up to make wide-ranging policy changes on consumers’ access to their financial data.
The Consumer Financial Protection Bureau (CFPB) is looking to implement the area of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act pertaining to a consumer’s rights to his or her own financial data. It is detailed in section 1033.
The agency has been laying the groundwork on this move for years, from requesting information in 2016 from financial institutions to hosting a symposium earlier this year on the problems of screen scraping, a risky but common method of collecting consumer data.
Now the agency, which was established by the Dodd-Frank Act, is asking for comments on this critical and controversial topic ahead of the proposed rulemaking. Unlike other regulations that affect single industries, this could be all-encompassing because the consumer data rule touches almost every market the agency covers, according to the story in American Banker.
The Trump administration all but ‘systematically neutered’ the agency.
With the ruling, the agency seeks to clarify its compliance expectations and help establish market practices to ensure consumers have access to consumer financial data. The agency sees an opportunity here to help shape this evolving area of financial technology, or fintech, recognizing both the opportunities and the risks to consumers as more fintechs become enmeshed with their data and day-to-day lives.
Its goal is “to better effectuate consumer access to financial records,” as stated in the regulatory filing….(More)”.