Nussle: Final 1033 rule will jeopardize consumer access to credit unions
The CFPB released its final section 1033 rule Tuesday, the latest example of the bureau’s regulatory overreach beyond Congressional intent.
America’s Credit Unions President/CEO Jim Nussle issued a statement in response to the final rule. It outlines requirements for financial institutions to provide a consumer with their personal financial data for free at the consumer’s request.
“From a few lines of text concerning consumer data portability in Dodd-Frank, the CFPB has spun a weighty rule intended to reengineer financial sector competition. The rule demands that credit unions share, at no cost, information with fintechs and other third parties who receive permission from consumers. In doing so, the CFPB reduces one of the most valuable assets of a financial institution, its data, to a commodity, which will likely put even greater competitive pressure on credit unions to merge,” Nussle said.
“While we appreciate the CFPB’s willingness to exclude the smallest credit unions from the scope of the final rule, consistent with our request for greater relief, our concerns related to risk management, downstream fraud, and the ability to defray the cost of maintaining APIs without charging fees remain present,” he added. “This rulemaking reinforces the need for CFPB reforms to ensure accountability and oversight – the bureau stepped far outside the lines made by Congress that will ultimately jeopardize consumers’ access to safe financial institutions like credit unions.”
The final rule exempts depository institutions with under $850 million in assets from compliance. The largest institutions will be required to comply by April 1, 2026, and the smallest covered institutions have until April 1, 2030.