Discussions on Consumers' Access to Financial Records Submitted to the Consumer Financial Protection Bureau

The U.S. Consumer Financial Protection Bureau (CFPB) has received comments from the Center for Data Innovation regarding the regulations for implementing Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This section of the Act provides for consumer access to financial records.

The comments propose that the CFPB should establish clear guidelines for data security and privacy in the context of APIs (Application Programming Interfaces). They also suggest that the CFPB should require regulated financial institutions to maintain open APIs, allowing consumers to access their account information easily.

The Center for Data Innovation advocates that the CFPB should mandate that data holders make any data a consumer can access directly through their portal available to authorized third parties through APIs. This measure is intended to promote competition and innovation in the financial sector, as well as ensure consumer control over their financial data.

The comments also highlight the importance of consumer education and transparency in the use of APIs for accessing financial records. To this end, the CFPB is encouraged to prioritize these aspects in its implementation of Section 1033.

Moreover, the comments recommend that the CFPB should consult with industry stakeholders and consumer advocacy groups to ensure a balanced approach to implementing Section 1033. The exact names of the third parties recommended by the Center for Data Innovation to access APIs of regulated financial institutions are not publicly specified.

The proposed APIs should provide access to consumer account information, including transaction history, account balances, and credit scores. The comments also suggest that the CFPB should consider the potential benefits of APIs for promoting competition and innovation in the financial sector.

In conclusion, the comments submitted by the Center for Data Innovation to the CFPB emphasize the importance of APIs in facilitating consumer access to their financial data, promoting competition, and ensuring data security and privacy. The CFPB is now tasked with implementing these recommendations in a balanced and transparent manner.