Consumers need clarity about their rights when companies collect, use, and monetize their payment and personal financial data. Without strong consumer protections, consumers will be harmed when that information is shared and used to make decisions about the consumer- particularly when that information may be incorrect. Consumers need to be able to correct any errors in information shared about them, especially when the consumer is not even aware of the existence of the data collected, the way it is shared, or to whom it is shared.
The Fair Credit Reporting Act best addresses these challenges. The CFPB’s Proposed Rule Regarding Proposed Rule Regarding Protecting Americans From Harmful Data Broker Practices issued December 13, 2024, would clarify that consumers have the protections of the FCRA when companies such as data brokers collect, use, and monetize their payment and personal financial data. As such, the CFPB should finalize the proposed rule.
Additionally, more transparency in how consumer payment and other personal financial data is collected, sold, and monetized is needed. The CFPB needs to collect and publish more information about the companies that collect, use, and monetize consumer payment and other personal financial data and how that data is collected and used.
See all resources related to: Banking, Payments & Remittances, Credit Reporting & Data Fairness