Washington, D.C. – A coalition of banking organizations has issued a statement addressing what they describe as inaccuracies in a letter from fintech and retail groups concerning the Consumer Financial Protection Bureau's (CFPB) Section 1033 rulemaking.
The statement clarifies that the current 1033 rule was proposed by the Biden Administration in October 2023 under former CFPB Director Chopra, rather than by the Trump Administration. The Biden-era rule requires banks to share consumer data with fintechs and aggregators but lacks essential data security measures, according to the banking groups.
"BPI, the Kentucky Bankers Association and a community bank have challenged this Biden-era rule because it puts Americans’ most sensitive financial data at risk," reads part of their statement.
The Trump Administration had asked for the rule to be vacated due to concerns over its legality and lack of proper safeguards. "These legal and practical concerns were confirmed when the Trump Administration’s CFPB concluded that the rule was 'unlawful' and moved to vacate it," states the release.
The coalition argues that banks and credit unions maintain high standards for data security, unlike many fintechs and aggregators. They emphasize that these financial institutions have invested significantly in secure systems for data sharing.
"Banks charge fees to ensure those businesses share in the cost of keeping consumers’ data safe and secure," notes their statement regarding fees charged for accessing consumer data through secure systems built by banks.
The Bank Policy Institute is among those involved in issuing this response. It is described as a nonpartisan group representing various banks within the United States, focusing on public policy, research, advocacy, cybersecurity, fraud prevention, and information security issues.
For further inquiries:
- Tara Payne at Bank Policy Institute: tara.payne@bpi.com
- Peter Cook at American Bankers Association: pcook@aba.com
- Paloma Perez Christie at America’s Credit Unions: pperezchristie@americascreditunions.org
- Weston Loyd at Consumer Bankers Association: wloyd@consumerbankers.com
- Nicole Swann at Independent Community Bankers of America: Nicole.Swann@icba.org