Chopra: CFPB’s 1033 consumer data proposal coming this month

The Consumer Financial Protection Bureau this month will propose standards for sharing consumer financial data, CFPB Director Rohit Chopra said.

Details: At a Brookings Institution forum on the payments system, Chopra said the proposal to implement Section 1033 of the Dodd-Frank Act is designed to accelerate the transition to open and decentralized banking while strengthening protections against excessive surveillance and misuse of consumer data.

ICBA View: In a comment letter earlier this year responding to the CFPB outline of proposals, ICBA called on the bureau to:

• Resist requiring banks to provide information outside the scope of Section 1033.

• Limit data requirements that might harm consumers and banks.

• Create exceptions and safe harbor protections tailored to community banks.

Petition on Data Aggregators: ICBA and other groups previously called on the CFPB to initiate a rulemaking that defines “larger participants” in the data aggregation services market that should be subject to ongoing supervision. The groups noted in a joint petition that while the 1033 rule will apply to financial institutions and data aggregators, third-party aggregators are not subject to CFPB supervision.

More from Chopra: In his Brookings remarks, Chopra also said the CFPB is planning:

• Supplemental orders to certain large tech companies that operate payment processors about their use of personal data and issuance of private currency.

• New guidance on how the Electronic Fund Transfer Act applies to private digital dollars and other virtual currencies.

• To examine its authority to supervise nonbanks offering consumer payments platforms.

• To encourage the Financial Stability Oversight Council to consider exercising its authority to designate stablecoins as systemically important.