American Commitment submitted comments to the Consumer Financial Protection Bureau opposing the Biden administration’s unlawful and harmful open banking rule, warning that it would impose price controls, undermine data privacy, and shift costs onto all bank customers. Here is a portion of that letter, and you can read the full letter here.
Dear Acting Director Vought:
We commend the bureau for acknowledging the flaws in the Personal Financial Data Rights rule promulgated under the Biden administration. We agree that the Biden open banking rule is unworkable, unlawful, and harmful to consumers and the financial system.
We urge the bureau to reject price controls for consumer data as you revisit the Personal Financial Data Rights rule.
Congress gave bank customers the right to obtain their own data under 12 USC § 5533. Section 1033 of Dodd Frank was not intended to create an open banking regime whereby banks are compelled to share data free of charge to third parties, fintech firms, data aggregators, or any other commercial actors. Subsection 1033(d) directs the Bureau to “prescribe standards to promote the development and use of standardized formats” for consumers, with no reference to any other applicable party. The Biden administration’s interpretation of 1033 grossly oversteps the bounds of the CFPB’s rulemaking jurisdiction…