Letter to the CFPB on the Proposed Rule for Section 1033

Dear Director Chopra,

The American Bankers Association (ABA) appreciates the opportunity to comment on the Consumer Financial Protection Bureau’s (CFPB or Bureau) Proposed Rule on Personal Financial Data Rights, which implements Section 1033 of the Dodd-Frank Act (NPRM). The NPRM is an ambitious yet thoughtful effort to balance numerous interests, such as consumer demand, prudential oversight, innovation, privacy protection, emerging markets, and security protocols. While some components may be functional, others may appear reasonable in the abstract but will break down in practical application. ABA urges the CFPB to incorporate feedback from stakeholders to develop a final rule that fulfills the promise of the consumer-permissioned datasharing ecosystem.

Given the complexity of the rule, the condensed comment period did not afford stakeholders adequate time to assess an entirely new regulatory framework with tendrils into a myriad of operational and control functions. The Bureau should have designated additional time to submit comments, as multiple entities requested. As such, ABA may supplement these comments with information it would have provided had the Bureau established a deadline commensurate with the NPRM’s impact.

Recommendations to the Bureau

As stated throughout the CFPB’s rulemaking efforts with regard to Section 1033 over the past several years, ABA supports consumers’ right to access their financial information securely, transparently, and subject to their control. At the same time, it is essential that all participants in the data sharing ecosystem are held to the same high standards as banks in areas such as keeping consumers informed, resolving disputes, and so on. We appreciate the CFPB’s efforts to preserve the best parts of the market-led data sharing ecosystem while seeking to implement guardrails to
protect consumers and market participants.

This letter will focus on delivering actionable guidance on the ways the Bureau can improve the effectiveness of the regulation.

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