New CFPB rule strengthens consumer data rights

On October 22, 2024, the Consumer Financial Protection Bureau (CFPB) finalized the Personal Financial Data Rights Rule. This rule gives consumers greater control over their personal financial data, requiring financial institutions, credit card issuers, and other financial providers to freely transfer an individual’s data to another provider upon request. The reasoning is so that consumers are better equipped to switch to providers that offer better rates and services. The expected result is that it will ultimately drive competition across the financial services industry.

This development has implications for the electronic bill presentment and payment (EBPP) space. With the heightened focus on data portability, security, and consumer choice, financial institutions must adapt quickly to meet these regulatory requirements and consumer expectations. Alacriti’s EBPP solution, designed to streamline loan payment processing and enhance the customer experience, is uniquely positioned to help banks, credit unions, and businesses navigate these changes effectively.

How the CFPB impacts consumer choice

The CFPB’s rule unlocks access to bank account details, credit card data, and transaction histories, so consumers can more easily transfer their personal financial data to new providers, making it easier to move on from financial institutions for greener pastures with higher interest rates on deposits or lower loan rates.

 

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