CUNA followed up its concerns with the Consumer Financial Protection Bureau’s proposed changes to disclosure of records and information requirements with a joint letter sent to the bureau Monday. CUNA, in its own comment letter, opposed the proposed changes due to potentially increased risk of unintended disclosures and a loss of confidentiality.
“We cannot support these changes as proposed. As a general matter, we do not believe the CFPB has articulated sufficiently any need for these changes. We also believe that the new approach to sharing CSI contravenes the governing statute and that the limits on CII raise constitutional concerns,” the joint letter reads. “Considering these points, we strongly urge the CFPB to withdraw the proposed amendments and reconsider these important issues.”
Specifically, the proposed rule would make changes to the regulations regarding confidential supervisory information (CSI) and confidential investigative information (CII), as well as the Freedom of Information Act.
CUNA is concerned that the loosening of requirements for agencies that may be allowed access to CSI includes agencies that have no jurisdiction over the subject financial institution. This appears to contradict statute that limits the CFPB’s authority to disclose CSI to a “prudential regulatory or other agency having jurisdiction over a covered person or service provider.”
The proposal would also restrict individual entities that are the subject of a civil investigative demand from voluntarily disclosing the receipt of the demand, which is considered CII.
“The need for both these changes is not articulated. Moreover, they have not been the position of the Bureau in the past and differ from the position of other agencies,” the letter reads. “Importantly, considering that the proposed limit on CII constrains free speech, it raises constitutional concerns.”
CUNA was joined by 4 other financial services trade organizations in sending Monday’s letter to the CFPB.