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CFPB Holds Field Hearing on Accessing Financial Data

Mon, Nov 21, 2016

District Of Columbia

CUNA plans to respond to, and seeks information from credit unions on, a Consumer Financial Protection Bureau (CFPB) request for information on consumer access to their financial records. The bureau released the request Thursday in conjunction with a field hearing in Salt Lake City on the same subject.

The field hearing focused on how consumers may use third-party financial technology companies, by providing access to their financial data, to allow them to aggregate it in a way that aids with financial planning and other money-management.

“We have heard that banks, credit unions, and others that house this information have operational concerns about when and how they are supposed to share the information with third-party providers. We want to learn more about this,” said CFPB Director Richard Cordray at the hearing. “Does the sharing of financial records impose burdens on staff time or other resources? Are there legitimate concerns that the number and frequency of these requests could overwhelm the servers at financial institutions?”

Credit unions support consumer-friendly innovation, but are also cautious about policies that might put consumers’ privacy at risk, or create unnecessary regulatory burdens.

For more information on the hearing, see CUNA’s Removing Barriers Blog.

Recently CUNA has also urged the CFPB to refrain from engaging in any rulemaking actions until the new administration is in place.