01/25/2023 | Press release | Distributed by Public on 01/25/2023 11:04
In a new letter sent today to the Consumer Financial Protection Bureau (CFPB), the Consumer Bankers Association (CBA) outlined specific recommendations to deliver a well-founded, durable Section 1033 rule that promotes competition and bolsters the safety and security of consumers' personal financial data. The letter was sent after the Bureau released an outline of proposals to implement Section 1033 of the Dodd-Frank Act in October.
The plain statutory language of Section 1033 is fundamentally centered on a consumer's right to control their own information, regardless of which financial services provider or entity holds that data. In the letter, CBA notes that by limiting the scope of the rule to only include certain segments of the market - in this case, depository institutions and credit card companies - the Bureau is failing to comply with the basic premise of this important law, depriving consumers of the ability to control all their data and putting the safety and security of that data at risk:
"The language of Section 1033 is not narrowly focused on just the ability 'for individuals to fire, or walk away from, their financial provider for whatever reasons' in connection with only deposit accounts or credit card accounts. It is vital that a rule implementing Section 1033 reflects the broad applicability of the statutory text to apply equally to banks and nonbanks that hold consumer accounts."
What We're Saying
Banks fully support the intent of Section 1033 and remain committed to ensuring every consumer - regardless of where they go to meet their needs - has access to their personal financial data and knowledge of how it may be used. To further this shared objective, CBA urged the Bureau in the letter to consider the following principles as they develop a final Section 1033 rule:
To read the full comment letter, click HERE.