Beyond Big Tech: CFPB's Payments Data Obsession May Broadly Target Third-Party Data Purchasers

In late October, the Consumer Financial Protection Bureau (CFPB) sent a shot across the bow at Big Tech's use of consumer payments data. While much of the industry has focused on the impact on Big Tech, some lenders, lead generators and data brokers may be unaware how the recent orders impact them. They do, and we explain why below.

What Happened

On October 21, 2021, the CFPB announced it had issued a series of orders to some of the largest U.S.-based technology companies that operate payment systems. The orders require these companies to provide extensive and fulsome information on (1) specific payment products offered by the company, including features of the payment products, ways in which payment products are marketed to consumers and businesses, fees that may be charged to consumers and businesses, and plans for evolving the product over time; (2) the data the company collects and retains as a result of consumers' use of its products, including the kinds of