The CFPB is coming for your financial data rights.
“When a consumer permits their private data to be used by a company for a specific purpose, it is not a free pass for a firm to exploit the data for other uses, no matter what the legal mouse-print may say,” Rohit Chopra, the Consumer Financial Protection Bureau director, said at Money 20/20.
Some key takeaways:
Financial institutions will be required to set up secure methods, like APIs, for data sharing.Incumbent institutions will be barred from improperly restricting access when consumers seek to control and share their dataWhen consumers share their data for a specific use, that is the only use it will be used for.Alternatives to the so-called notice-and-opt out regime that has been the standard for financial data privacy
October 2022: CFPB publicly releasing a discussion guide so small firms can weigh in regarding the proposals.Q4 2022: CFPB will convene a panel of small businesses that represent their markets to provide input on our proposals.Q1 2023: CFPB will publish a report about the input received through that process.2023: Proposed rule issued2024: Finalize rule and move to implementation
Read more about what Chopra said here