Banks Respond to CFPB’s Reopened Section 1033 Rulemaking

Washington, D.C. – The Consumer Financial Protection Bureau today took a concrete step to comprehensively reexamine its prior 1033 rulemaking by issuing an advance notice of proposed rulemaking seeking input on particular issues related to implementation of Section 1033. The Bank Policy Institute, Kentucky Bankers Association and Forcht Bank responded with a statement:

“This rulemaking presents an opportunity for the CFPB to right the problems of the Biden-era rule by sticking to its statutory authority and putting consumers’ security first. Banks are advocating for a solution that both protects consumers and preserves marketplace innovation already underway, and we look forward to working with the Administration on its efforts to revise the problematic 2024 rule.”

The ANPR seeks comments within 60 days on a variety of topics, including the following: the definitions of “consumer” and “representative”, the cost of providing data access, the cost of accessing data, market developments since the last proposal, the Bureau’s legal authority under the Dodd-Frank Act to write the rule, data security obligations, and liability for data breaches. The CFPB will use this information to determine whether to formally propose a new rule.

As BPI, KY Bankers and Forcht Bank consistently emphasized through litigation and prior rulemakings, any rule governing permissioned data sharing must focus on consumer data sharing rather than illegally require consumer data to be shared with third-party middlemen, thereby putting consumers at risk.

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About Bank Policy Institute.

The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks and the major foreign banks doing business in the United States. The Institute produces academic research and analysis on regulatory and monetary policy topics, analyzes and comments on proposed regulations, and represents the financial services industry with respect to cybersecurity, fraud, and other information security issues.

About the Kentucky Bankers Association.

The Kentucky Bankers Association is a nonprofit trade association that has been providing legislative, legal, compliance and educational services to its member institutions since 1891. KBA’s directors and staff work together with its members to make the financial services industry a more effective and successful place to work. The strength of the KBA is bankers unifying as an industry to speak as one voice. The purpose of the Kentucky Bankers Association is to provide effective advocacy for the financial services industry both in Kentucky and on a national level; to serve as a reliable and responsive source of information and education about areas of interest to the industry; and to provide a catalyst and forum for collective industry action.

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