ICBA called on the Consumer Financial Protection Bureau to exempt from its 1033 rule requirements all community banks with assets $10 billion and under.
Details: In a letter responding to the CFPB’s proposed rule on implementing Section 1033 of the Dodd-Frank Act, ICBA said the bureau should:
Expand the exemption for small data providers from banks with less than $850 million in assets to all community banks with assets $10 billion and under.
Limit mandatory data sharing to third parties that act in the consumer’s best interest.
Allow banks to charge a reasonable fee for developer interface access.
Oversee larger third-party data recipients to ensure they protect consumers’ private data.
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. Following the release of the proposal, 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: Senior ICBA staff recently met with CFPB leaders to discuss Section 1033 rulemaking. Addressing the 1033 rule is a key priority of ICBA’s “Repair, Reform, and Thrive” plan for the 119th Congress and Trump administration.
