Rep. Mike Flood U.S. Representative for Nebraska's 1st District | Official U.S. House headshot
Rep. Mike Flood U.S. Representative for Nebraska's 1st District | Official U.S. House headshot
U.S. Congressman Mike Flood led a bipartisan letter today, joined by Congresswoman Brittany Pettersen (D-CO), Congresswoman Erin Houchin (R-IN), and Congressman Gregory W. Meeks (D-NY) along with ten other House Financial Services Committee members, addressing the Consumer Financial Protection Bureau (CFPB). The letter requests revisions to secondary data use restrictions in the Personal Financial Data Rights proposed rulemaking.
“In our digital age, it’s important that consumers are given control over their own data so they can use it in ways that benefit them,” said Rep. Flood. “Today, we’re asking the Consumer Financial Protection Bureau to adjust the Personal Financial Data Rights proposal to unlock the innovation and competition that will come from open banking. Thanks to all my colleagues, and especially Representatives Houchin, Meeks, and Pettersen, for joining in this important effort.”
Rep. Houchin emphasized the value of consumer data: "In an era where data is as valuable as currency, it's imperative that consumers maintain control over their own information. We must ensure that our pursuit of consumer protection does not inadvertently lead to reduced benefits, diminished competition, or heightened risks of fraud.”
Rep. Meeks highlighted potential issues: “Through this rulemaking, the CFPB is making significant strides in giving consumers control over their data usage and sharing. For that reason, we want to ensure that unintended consequences, such as reduced competition and increased risk of fraud, don't undermine the rule in a way that could negatively impact consumers.”
The lawmakers expressed their stance on consumer empowerment: “We agree that our financial services system should put the consumer in charge of how their data is used, and we seek to empower consumers to safely share their financial data with the providers of their choice,” they wrote. “Additionally, we support the proposed rule’s efforts toward data privacy, data minimization, and its prohibition on third parties selling consumer data.”
The Personal Financial Data Rights proposed rule aims to implement section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 1033 directs the CFPB to ensure that a consumer financial services provider makes a consumer’s own financial data available for their use.
Congressman Flood is a member of the Financial Services Committee.
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