The finalized 1033 rule: A threat to credit unions and military families

The Consumer Financial Protection Bureau recently finalized its 1033 rule, mandating that financial institutions provide consumers with greater access to their financial data, and allow them to share that data with third-party financial technology companies.

While the rule is presented as a victory for consumer empowerment and financial innovation, it comes with a set of profound risks — particularly for credit unions, and more critically, for those serving the military community.

As the Defense Credit Union Council, we represent not-for-profit, member-owned credit unions that serve active-duty military personnel, veterans, and their families. Our institutions operate under a guiding principle of “people helping people,” with a unique focus on providing tailored financial services that meet the specific needs of military families. Unfortunately, the CFPB’s 1033 rule threatens this model, and the potential consequences for credit unions and the military families they serve are troubling.

Credit unions are some of the most trusted institutions in the financial sector, particularly for military families, who rely on us to safeguard their financial well-being. Service members face unique challenges — frequent relocations, deployments, and the complexities of transitioning to civilian life — which make financial stability even more critical.

 

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