Last week, in a letter to the Consumer Financial Protection Bureau, AFSA reiterated support for innovation in the financial services industry but cautioned against overly restrictive use limitations. The CFPB’s proposed rulemaking to implement Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) is the next step in a 7-year process which AFSA has been involved in, submitting comments and suggestions to the CFPB on previous proposals. In this most recent comment letter, AFSA’s proposed changes and clarifying questions are aimed at ensuring consumers’ financial data be protected and that the rule is able to be properly implemented. The suggestions and questions include:
- Proposing three specific language changes that would clarify definitions and intent so the CFPB and AFSA members can work together to navigate the line between providing consumers increased access while ensuring that their sensitive information is protected.
- Requesting more detail about standard-setting bodies to provide covered parties clear rules of the road in this space.
- Asking for increased clarity in this rulemaking that third parties may use consumer data in fraud prevention efforts and for improving internal credit models as not allowing financial institutions to use consumer data for fraud prevention would have the unintended consequence of reducing consumer data security and privacy.
- Ensuring that the rulemaking allows data providers to be able to choose whether consumers need to reauthorize consent each year as smaller companies might find that burdensome.
- Calling for the CFPB to clarify the interplay of the Section 1033 rulemaking with the announced rulemaking to amend Regulation V. Based on the SBREFA outline issued by the CFPB on September 15, 2023 for the upcoming Regulation V rulemaking, a “data aggregator” under the proposed Part 1033 may also be a “data broker” under the Regulation V proposal in some cases. Industry needs clear guidance on when the CFPB intends a party to be covered by both regulations.
Given the breadth of this rulemaking and the need for some clarifying answers, AFSA also requested that the enforcement deadline should be delayed so that financial institutions can properly comply.
AFSA Suggests Changes to Financial Data Rulemaking
Jan 04, 2024
Last week, in a letter to the Consumer Financial Protection Bureau, AFSA reiterated support for innovation in the financial services industry but cautioned against overly restrictive use limitations. The CFPB’s proposed rulemaking to… Read the rest
CEO Roundtable | 2024 Vehicle Finance Conference & Expo
Jan 03, 2024
Get the insights you need for 2024 and beyond from the industry leaders in the know at the capstone session of AFSA’s Vehicle Finance Conference & Expo: the CEO Roundtable. Be a part of 2024’s best vehicle-finance industry gathering, with… Read the rest
Lies & Loans: What’s on the Vehicle Finance Fraud Horizon?
Dec 21, 2023
From false documents, overstating income and phantom loans to synthetic identities and leveraging stolen data on the Dark Web, vehicle finance fraudsters are adapting and innovating as quickly as the technology and techniques used to trap… Read the rest
AFSA & Trades: CFPB AO Not A-Okay
Dec 20, 2023
Earlier this week AFSA joined the Bank Policy Institute, the Consumer Bankers Association and the U.S. Chamber of Commerce in a letter to the Consumer Financial Protection Bureau (CFPB) raising concerns and requesting clarification on … Read the rest
AFSA Makes Publication Request
Dec 18, 2023
In November the California Third Court of Appeals issued an unpublished decision that affects the vehicle finance industry, Stettner v. Mercedes-Benz Financial Services USA, LLC. Unpublished opinions are prohibited from being cited … Read the rest
Senators Introduce Anti-ILC Legislation
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Today, AFSA wrote a letter to the Senate Banking Committee in opposition to the recently introduced the Close the Shadow Banking Loophole Act, which targets the ability of Industrial Loan Companies (ILCs) charted entities to exist in the … Read the rest
Senator Reed’s Lump of Coal for Consumers
Dec 15, 2023
Sponsors in the U.S. Senate of the latest national rate cap bill apparently aren’t clear on the concept of holiday giving. The goal should be to give a gift, not take things away. Yet that is what Sen. Jack Reed’s “all-in” 36% APR cap legislation… Read the rest
Jay Powell Dons His Santa Hat
Dec 14, 2023
Yesterday’s decision by the Federal Reserve to hold the short-term interest rate steady for the third consecutive meeting at a range of 5.25 to 5.5 percent came as no surprise. Indeed, financial markets had consistently in recent weeks put… Read the rest
Marginally Important House Events
Dec 14, 2023
Due to some surprising announcements and actions in the past few weeks, Congressional math will look different after the New Year. As Congress heads into 2024, an election year, here are the most recent changes to the House of Representatives… Read the rest
FTC Releases Shopping Rule in Time for Holidays
Dec 13, 2023
The Federal Trade Commission (FTC) released a final rule related to vehicle shopping yesterday. AFSA and the Consumer Bankers Association (CBA) submitted a comment letter on the proposed rule in September 2022. We are pleased that a few of… Read the rest