ICBA’s unique call for the Consumer Financial Protection Bureau to exempt community banks from its 1033 rule—and big banks’ opposition to a community bank exemption—is making news.
New Report: American Banker (subscription required) reported that while ICBA called on the CFPB to exempt all community banks with assets $10 billion and under, other banking groups are actively opposing an ICBA-advocated exemption. “Large banks are against any exemption for their smaller counterparts,” the article says.
ICBA Comments: In a letter responding to the CFPB’s proposed rule on implementing Section 1033 of the Dodd-Frank Act, ICBA said the bureau should:
Expand the exemption for small data providers from banks with less than $850 million in assets to all community banks with assets $10 billion and under.
Limit mandatory data sharing to third parties that act in the consumer’s best interest.
Allow banks to charge a reasonable fee for developer interface access.
Oversee larger third-party data recipients to ensure they protect consumers’ private data.
Background: Section 1033 of the Dodd-Frank Act requires covered financial institutions to make available to consumers certain data relating to consumers’ transactions and accounts upon request.
Latest Proposal: The CFPB in August released an advance notice of proposed rulemaking to collect information on how it should implement Section 1033 standards.
Recent Court Developments: The U.S. District Court for the Eastern District of Kentucky last week stayed the compliance deadline for the 1033 rule after the CFPB earlier this year requested a stay, saying it has decided to initiate a new rulemaking. The court ruling stays the deadline until the CFPB completes its rulemaking.
Potential Impact of the Rule: ICBA has long expressed concerns about the impact of the rule on consumer data security and privacy.
Ongoing Advocacy: Senior ICBA staff recently met with CFPB leaders to discuss Section 1033 rulemaking. Addressing the 1033 rule is a key priority of ICBA’s “Repair, Reform, and Thrive” plan for the 119th Congress and Trump administration.