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ARTICLE · 26 APRIL 2016

The CFPB Issues First Data Security Consent Order

Strasburger & Price, L.L.P.
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The Consumer Financial Protection Bureau (CFPB) supervises banks, credit unions, and other financial companies, and enforces federal consumer financial laws.

United StatesFinance and Banking
Kathryne Morris
Kathryne Morris
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The Consumer Financial Protection Bureau (CFPB) supervises banks, credit unions, and other financial companies, and enforces federal consumer financial laws.  Since its creation in 2010 under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has not engaged in enforcement actions related to data security issues.  Until now...

On March 2, 2016, the CFPB issued its first Consent Order against online payment platform Dwolla, Inc. (Dwolla) for its alleged unfair and deceptive acts and practices regarding Dwolla's data security policies and procedures.  In the order, the CFPB alleged that Dwolla failed to maintain adequate data security practice despite contrary representations made to consumers.  The CFPB particularly noted that Dwolla failed to:

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