CFPB ‘open banking’ proposal due in October: official

(Reuters) – The Consumer Financial Protection Bureau, the top U.S. agency supervising the retail financial services sector, is due to propose in October a long-awaited rule on consumers’ control of their banking data, its director said Wednesday.

The rule, called for under 2010’s sweeping Wall Street reform law, is likely to prove crucial to governing how consumers control personal data collected and used by the financial tech sector.

During a second day of congressional testimony, CFPB Director Rohit Chopra told the House Financial Services Committee that his agency was on track to issue the proposal by October, confirming an indicative timetable released Tuesday by the White House Office of Management and Budget.

“We want to make sure that standards are giving the ability for consumers and all market participants…to switch,” said Chopra. “When a consumer has the power to vote with their feet, you’ll see how our system will give them better service as well.”

In a blog post on Monday, Chopra said the agency anticipated finalizing the rule by next year after a notice and comment period.

Chopra also faced antagonism from Republican committee members who object to a rule on demographic data collection for small business lending and proposed limits on credit card late fees.

Texas Republican Roger Williams last month introduced a joint resolution that would seek to nullify the CFPB small business lending rule finalized in March. In Senate testimony on Tuesday, Chopra defended his agency’s proposal on limited credit card late fees.

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