ICBA and other groups issued a statement correcting the record on the Consumer Financial Protection Bureau’s Section 1033 rulemaking following misleading claims from a group of fintech and retail organizations.
Details: In a recent letter, the Financial Technology Association and other groups urged President Donald Trump to uphold the CFPB’s 1033 rule on consumer data security and privacy after the bureau last month asked a federal court to vacate the rule. In a national news release, ICBA and other groups corrected several inaccuracies from the letter while noting the rule would put Americans’ most sensitive financial data at risk.
Recent Advocacy: ICBA last month told the CFPB that community banks are already fulfilling their legal obligations under Section 1033 by providing consumers with electronic access to their financial data through online banking portals and mobile apps. ICBA also said the Section 1033 statute only mandates data access directly to consumers, not third parties.
ICBA View: ICBA has long expressed concerns about the impact of the rule on consumer data security and privacy. While the rule included an ICBA-advocated provision exempting community banks under $850 million in assets from a provision requiring institutions to create and maintain a third-party developer interface, ICBA has repeatedly called on the CFPB to focus its implementation of Section 1033 on promoting data security at third-party entities.
Ongoing Advocacy: Addressing the 1033 rule is a key priority of ICBA’s “Repair, Reform, and Thrive” plan for the new Congress and Trump administration. ICBA’s Open Banking Guidebook details the rule as well as its advocacy efforts, including securing exemptions for community banks under $850 million in assets.
