CFPB Proposes New Rules on Personal Financial Data Access

On October 19, 2023, the Consumer Financial Protection Bureau (“CFPB”) released its Proposed Rule on Personal Financial Data Rights (“Proposed Rule”) issued under Section 1033 of the Consumer Financial Protection Act of 2010, for public comment. The CFPB proposes to establish a framework for consumers that would allow them to authorize third-parties to safely collect their personal financial data and enable access to products and services provided primarily by Fintechs and aims to empower consumers by allowing them to easily choose the best financial products and services and to improve consumer control over their financial data and prevent companies from misusing it. Key Features of the Proposed Rule: (a) enhanced consumer control; (b) standardized data access; (c) data security measures, (d) scope and compliance; and (e) potential implications. The CFPB said the Proposed Rule on Personal Financial Data Rights represents a pivotal step towards empowering consumers with greater control over their financial data. By establishing clear guidelines and standards, the rule aims to foster innovation in financial services while ensuring robust protections for consumer information.