CFPB asked to reinstate consumer protections for financial data

Sens. Richard Blumenthal, D-Conn., Elizabeth Warren, D-Mass., and Ron Wyden, D-Ore., have urged the Consumer Financial Protection Bureau to reverse its move toward undoing the Personal Financial Data Rights rule, arguing that the agency's action would weaken legal protections that let consumers control access to their financial information, FedScoop reports.

In a letter to acting Director Russell Vought, the senators said the rule requires financial institutions to give consumers and authorized third parties free access to data from bank accounts, payment apps, credit cards, and digital wallets and that this no-cost access is "at the heart of the rule."

The senators warned that rolling back the rule would let large banks charge "exorbitant fees," limit competition, and leave consumers with fewer options. They said it is unrealistic to expect people or third parties to manage large data files on their own.

The lawmakers also objected to signals that the CFPB may narrow which third parties can act as fiduciaries, saying this would exclude legitimate fintech firms. The American Fintech Council raised similar concerns in comments to the agency.