Senior ICBA staff met with Consumer Financial Protection Bureau leaders to discuss its Section 1033 rulemaking on sharing consumer financial data.
Details: ICBA met with Mark Calabria and CFPB staff to discuss:
Expanding the exemption threshold to $10 billion.
Limiting the universe of potential third parties data can be shared with.
Allowing banks to charge a reasonable fee for data access.
Shifting financial liability for breaches to the third party where the breach occurs.
Background: Section 1033 of the Dodd-Frank Act requires covered financial institutions to make available to consumers certain data relating to consumers’ transactions and accounts upon request.
Latest Proposal: The CFPB in August released an advance notice of proposed rulemaking to collect information on how it should implement Section 1033 standards, and ICBA urged the agency to focus its rulemaking on including needed protections for community banks and their customers.
Recent Court Developments: The proposed rule comes after the CFPB this summer requested a stay in a lawsuit challenging the 1033 rule and said it has decided to initiate a new rulemaking. The CFPB previously asked a federal court to vacate its 1033 rule, saying the rule is unlawful.
Potential Impact of the Rule: ICBA has long expressed concerns about the impact of the rule on consumer data security and privacy. ICBA and other groups recently issued a statement correcting the record on the Section 1033 rulemaking following misleading claims from a group of fintech and retail organizations.
Ongoing Advocacy: Addressing the 1033 rule is a key priority of ICBA’s “Repair, Reform, and Thrive” plan for the 119th Congress and Trump administration.
