Payment privacy proposal should enhance transparency, avoid undue burdens
In response to a Request for Information by the CFPB on consumer payment privacy, America’s Credit Unions Regulatory Advocacy Counsel John Vatian shared the credit union perspective.
Vatian outlined America’s Credit Unions’ support for consumers’ rights to access and control their own personal financial data. Credit unions have a responsibility to ensure that credit union members’ data remains safe, secure, and private. The organization also supports interagency coordination between the CFPB and the FTC concerning how large tech companies treat data in payment and financial products.
He also pointed out current tools the CFPB possesses that can ensure transparency in financial companies in how they process, protect, and disclose data about consumers.
Vatian noted the opt-in framework outlined in the CFPB’s final rule on Personal Financial Data Rights, implementing Section 1033 of the Dodd-Frank Act, provides a critical mechanism for ensuring consumers have control over their financial data.
He also cautioned the bureau that any new data protection legislation or regulation, including potential reforms to Regulation P, should not impose new regulatory burdens on financial institutions. Additionally, he recommended further research on how large nonbank tech companies respond to consumer complaints about identity theft, unauthorized transactions, and handling of Regulation E errors.