The American Bankers Association today joined three banking and credit union associations in urging the Consumer Financial Protection Bureau for a “level playing field” between regulated financial institutions and less-regulated businesses if it pursues action on the collection of personal financial data.
The CFPB in January issued a request for information on the collection, use and monetization of consumer payments and other personal financial data. The associations noted the request was made under former Director Rohit Chopra, not long before President Trump was sworn into office, so their preference is for the new administration to rescind the request. Still, since the request remains outstanding, they offered a response “to ensure that the current administration is fully apprised of several relevant policy considerations.”
The associations recommended the CFPB focus its regulatory and examination resources in two areas. The first should be to level the playing field between depository institutions and less regulated technology services providers. The second should be to update the credit reporting model form to provide more clarity to customers and financial institutions.
“A level playing field between Big Tech and traditional depository institutions through the common practice of examination to evaluate compliance with well-established laws and regulations is imperative in order to ensure consistent standards of consumer protection across the financial services ecosystem,” the associations said.
