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CFPB Announces Rulemaking for Personal Financial Data Rights

  • The CFPB released an outline of proposals and alternatives the Bureau is considering for a rulemaking that, according to a statement from CFPB Director Rohit Chopra, are aimed to boost competition in the financial services market by requiring financial institutions to set up secure methods for data sharing and allow consumers to access and share their personal financial data with competing financial service providers.
  • The CFPB is also developing requirements to limit the misuse and abuse of personal financial data and exploring ways to ensure that consumer financial data is only shared for the specific use to which the consumer initially consented, such as alternatives to the so-called “notice-and-opt out” regime that has been the standard for financial data privacy.
  • The CFPB next will convene a panel of small businesses— including banks and financial companies who provide or collect consumer data as well as intermediary data brokers that facilitate data transfers— to solicit feedback on its proposals, which will then be included in a report that the CFPB will consider as it finalizes a proposed rule that it plans to issue in 2023.