Whose Rule Is It Anyway? Unpacking CFPB’s Rule 1033

In this episode, Capitol Hill insider John McKechnie takes an unflinching look at the Consumer Financial Protection Bureau's (CFPB) Rule 1033, unpacking what it means for credit unions, consumers, and fintech. In this top-level discussion, McKechnie and host Vince Passione discuss the liability risks posed by third-party data sharing, the rule’s black, white, and grey areas, and the roadmap for navigating further regulatory complexities in the year ahead.Key takeaways:00.47: Key implications for credit unions of the Consumer Financial Protection Bureau’s (CFPB) Rule 1033.02.20: The origins of the rule’s intention date back to the turn of the last century with the dotcom boom, but were really brought to bear when the Dodd Frank Act passed in 2010.04.15: The intent of the rule has long been contentious, with parties pointing out that consumers already have access to a wealth of data and can control it how they choose, therefore why would it now need regulating?04.50: What party is obligated to protect consumer data remains vague, and the CFPB’s own director still seems elusive on details.08.10: The day after the rule was announced in final form, the Kentucky Bankers Association filed a suit challenging the regulation.09.10: The rule’s inclusion of major fintech providers like PayPal and ApplePay shouldn’t have come as a surprise–although it was widely reported as one.10.45: How the objections to Rule 1033 are strong enough that we may see credit unions and banks working together to challenge the legislation.15.08: The law doesn’t provide for oversight of third parties that have access to consumer data, which is a “huge legal sticking point.”17.48: With the incoming political administration, there’s a high likelihood that the House and Senate will repeal the regulation and require a new iteration be presented.19.00: Credit unions have cause to be nervous with so much potential change to the tax legislation in 2025.Resources Mentioned:https://www.consumerfinance.gov/ Consumer Financial Protection Bureauhttps://www.consumerfinance.gov/about-us/newsroom/cfpb-finalizes-personal-financial-data-rights-rule-to-boost-competition-protect-privacy-and-give-families-more-choice-in-financial-services/ Rule 1033https://www.cftc.gov/LawRegulation/DoddFrankAct/index.htm Dodd Frank Acthttps://www.congress.gov/bill/118th-congress/senate-bill/1838/text Credit Card Competition ActThanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show and be sure to subscribe so you never miss another insightful conversation.#CreditUnions #Lending #Data

There are no comments yet.

Please log in to write the first comment.