The Chairman of the House Financial Services Committee, Patrick McHenry, issued a statement regarding the Consumer Financial Protection Bureau's (CFPB) final rule implementing Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. McHenry stated, "The CFPB’s final 1033 rule is a promising step forward to protect Americans’ financial data privacy." He emphasized that consumers should have control over their financial data, including knowledge of where it is going and how it is used. The ability to terminate data collection by certain firms was also highlighted as essential.
McHenry noted that the new rule aligns with the Republicans' Data Privacy Act. He acknowledged Director Chopra for addressing some concerns about restrictions on secondary use of consumer data, calling it progress for innovation and consumers. However, he stressed the need for further action: "Congress must build on the bipartisan consensus regarding financial data privacy. It’s critical that we make these protections permanent by passing Republicans’ Data Privacy Act of 2023."
Background details include that on June 23, 2022, McHenry released a draft legislation aimed at modernizing the Gramm-Leach-Bliley Act (GLBA) to enhance financial data privacy. On February 24, 2023, he introduced H.R. 1165, known as the Data Privacy Act of 2023. This legislation aims to give consumers more control over their personal information while fostering innovation in the U.S.
On February 28, 2023, this act was passed by the House Financial Services Committee. On December 13, 2023, McHenry submitted comments on CFPB’s proposed rule under Section 1033 of Dodd-Frank. He pointed out similarities between CFPB's proposal and the Republicans' Data Privacy Act while urging changes to provisions concerning secondary data usage that might hinder innovation or harm consumers.