CFPB Proposes Financial Data And Open Banking Rule

On October 19, 2023, the Consumer Financial Protection Bureau (CFPB) issued a notice of proposed rulemaking to implement Section 1033 of the Dodd-Frank Act. Section 1033 of Dodd-Frank requires covered persons to make information concerning a financial product or service that a consumer has obtained from such person available to the consumer, subject to rules implemented by the bureau.

The proposed rule would require that certain financial institutions, card issuers and other payment facilitation providers make consumer data – including transaction data – more readily available to consumers and authorized third parties. It also would place consumer protection obligations on these entities, as well as on third parties authorized to collect and use that data.