CUNA, NAFCU request extended comment period for data rights proposal

CUNA, NAFCU and other financial trade associations wrote to the Consumer Financial Protection Bureau (CFPB) Friday requesting an extended comment period for the bureau’s notice of proposed rulemaking (NPRM) on personal financial data rights. The CFPB released the proposal Oct. 19, which lays out requirements for financial institutions, card issuers, and other payment providers to share certain consumer financial data with third parties at consumer request.

The rule was proposed with a 60-day comment period, and the organizations request at least 30 additional days.

“CFPB has provided at least 90 days for notice and comment at previous points in their 1033 rulemaking process. Pursuing a notice and comment period that is less than 90 days creates a concerning divergence from CFPB’s established practices on the 1033 rulemaking,” states the letter. "Further, the unique role of the NPRM within the agency rulemaking process necessitates due consideration to the time allotted to the public to provide comment on the agency’s formal plan to accomplish its goals on a specific regulatory topic beyond that provided during other points in the rulemaking process.

“Unlike other aspects of the rulemaking process, the NPRM is the primary opportunity for industry and members of the public to convey their views on the specific proposals put forth by the agency for full consideration by the agency in the finalization of the rulemaking,” it adds.

The letter adds the 60-day timeline disadvantages small entities covered by the rule, meaning the final rulemaking could adopt requirements that would ultimately disadvantage those entities.

“Further, a rush to finalize this 1033 rulemaking, especially after the CFPB has pursued such a deliberate process up to this point, would invite scrutiny and potential future revisions, ultimately creating confusion for consumers and businesses, as well as additional compliance costs,” it reads.