ICBA urges CFPB to limit burden of rulemaking on consumer data

ICBA called on the Consumer Financial Protection Bureau to limit the regulatory burden of its pending rulemaking to establish standards for sharing consumer financial data.

Background: The CFPB released an outline of proposals it is considering as it works to implement Section 1033 of the Dodd-Frank Act. The law requires banks and other covered entities to provide consumers and authorized third parties access to financial information in the covered entities' possession.

ICBA Comments: In a comment letter responding to the outline, which the CFPB provided to a panel of small entities pursuant to the Small Business Regulatory Enforcement Fairness Act, 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.

• Apply the rule to all entities offering accounts that retain customer funds.

• Require authorized third parties to disclose risks and inform of their liability in the event of a loss.

• Create exceptions and safe harbor protections tailored to provide maximum legal and regulatory protection for community banks.

• Bring third-party providers under the supervision of the CFPB and subject them to annual examinations.