![]() This approach implements the CFPB’s intent to cover consumer financial service companies that have transaction-level information. These definitions include retail banks and others that issue debit cards, credit card issuers, and prepaid card issuers. The CFPB proposes to initially require two types of financial companies to make consumer data available under Section 1033: “financial institutions” as defined in the CFPB’s Regulation E, and “card issuers” as defined in the CFPB’s Regulation Z. ![]() 5 Section 1033 requires the CFPB to balance a number of different priorities - including data privacy, consumer choice, and information security - and the Outline provides some initial information on how the CFPB is approaching that task.Ĭovered Data Providers. The CFPB released an outline for that discussion (Outline). As a first rulemaking step, the CFPB is required to consult with a panel representing small businesses under the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA). Section 1033 authorizes the CFPB to write regulations under which consumers may access information about themselves from their financial service providers. 1 This followed a preview by CFPB Director Rohit Chopra at the Money 20/20 conference on October 25 in which he outlined the “CFPB’s new approach to regulation,” which is designed to create “catalysts for more competition.” With respect to Section 1033, Director Chopra said that the CFPB is “exploring safeguards to prevent excessive control or monopolization by one, or even a handful of, firms” 2 and will be working toward avoiding regulations that could be “rigged in favor of some players over others.” 3 Director Chopra’s focus on competition as an essential element of consumer protection has been a hallmark of his directorship. ![]() The Consumer Financial Protection Bureau (CFPB) on Octotook the long-anticipated first step to issue a regulation implementing Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
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