Eight U.S. trade groups are urging the Consumer Financial Protection Bureau to define data aggregators as “larger participants” subject to regulatory supervision.
The Aug. 2 petition was signed by banking trade groups Independent Community Bankers of America, Consumer Bankers Association, American Bankers Association and National Bankers Association.
The CFPB is undertaking rulemaking on a data-sharing rule under Section 1033 of the Dodd-Frank Act. The rule would establish standards for sharing financial data on consumers, usually through third parties. Section 1033, named for its place in the 2010 Dodd-Frank Bill, has not been finalized. As reported by American Banker, the bank trade groups asked the bureau to issue the “larger participants” piece before implementing the separate consumer access to financial data piece proposed in Section 1033.
“The CFPB should ensure that data aggregators and data users that are larger participants in the aggregation services market —not just banks and credit unions — are examined for compliance with applicable federal consumer financial law, especially the requirements of the forthcoming 1033 rulemaking, including the substantive prohibitions on the release of confidential commercial information,” the letter stated. “Only then will customers be protected in equal measure when their data is shared outside the secure bank and credit unions systems.”