Congresswoman Sylvia Garcia Statement on the Consumer Financial Protection Bureau's Rule to Boost Consumer Rights and Privacy

Houston, TX – Congresswoman Sylvia R. Garcia (D-TX-29) issued the following statement in response to the Consumer Financial Protection Bureau's final rule implementing Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010:

“I’m pleased the Consumer Financial Protection Bureau is taking this critical step to strengthen consumer rights, privacy, and competition in the financial services industry. By giving Americans greater control over their personal data, this new rule empowers consumers to switch to better providers without facing unnecessary barriers and fees. This will allow families to make better financial choices. 

"But we must do more to include those who have been historically shut out of the banking system. Our most vulnerable communities, including those who rely on Electronic Benefits Transfer cards to access nutritional assistance, deserve the same protections. Expanding this rule to include Electronic Benefits Transfer card users would ensure that everyone, regardless of their financial situation, benefits from these safeguards. I urge the Consumer Financial Protection Bureau to work with all appropriate agencies to expand these protections."

The rule requires financial institutions, credit card issuers, and other financial providers to unlock an individual’s personal financial data and transfer it to another provider at the consumer’s request for free. Consumers will be able to more easily switch to providers with superior rates and services. By fueling competition and consumer choice, the rule will help lower prices on loans and improve customer service across payments, credit, and banking markets.

Today’s rule ensures consumers will be able to access and share data associated with bank accounts, credit cards, mobile wallets, payment apps, and other financial products. It aims to address market concentration that limits consumer choice over financial products and services. Consumers will be able to access, or authorize a third party to access, data such as transaction information, account balance information, information needed to initiate payments, upcoming bill information, and basic account verification information. Financial providers must make this information available without charging fees.

The rule also establishes strong privacy protections, requiring that personal financial data can only be used for the purposes requested by the consumer. It ensures that third parties cannot use consumer data for other purposes that benefit the third party, but that consumers do not want. It also helps move the industry away from “screen scraping,” a still common but risky practice that typically involves consumers providing their account passwords to third parties who use them to access data indiscriminately through online banking portals.