WASHINGTON (2/11/14)--Consumer Financial Protection Bureau data collection practices could increase the risk of identity theft and fraud for consumers, the Credit Union National Association has warned.
Under the Dodd-Frank Act, the CFPB is permitted to gather information on organizations, their business conduct, markets, and activities of covered persons and service providers. This information is filed to the CFPB by financial institutions and other service providers. The CFPB has stressed that any personal information collected is stripped from the agency records.
CFPB Director Richard Cordray has said the data is used to examine overall trends, not individual transactions.
Lawmakers and others are concerned about the safety of this data, in light of the recent Target and Neiman Marcus data breaches. CUNA is also particularly concerned by the resulting obligations that these data collection efforts may create for credit unions. CUNA is continuing to voice its concerns in this area with the CFPB and lawmakers, and is preparing a letter to the CFPB on data security issues.
The CUNA concerns, noted in this week's Regulatory Advocacy Report, come as many in the U.S. Congress are taking a close look at consumer data security standards. Three data security hearings were held last week, and CUNA encouraged lawmakers to take a broad look at how consumer data is secured and the improvements that are necessary to prevent future breaches from taking place.
"Focusing on one payment method as the absolute answer to solving data security breaches is both shortsighted and distracts from the greater need of a federal data security framework for all entities," CUNA President/CEO Bill Cheney wrote in letters sent to select House and Senate committees last week.
Other topics tackled in this week's Report include:
Use the resource link for this week's Regulatory Advocacy Report.