The CFPB yesterday released final rules which would give consumers the right to instruct their banks to transfer their financial data to other institutions. The CFPB says the ruling will help consumers to more easily switch to providers with superior rates and services, lowering prices on loans and improving customer service across payments, credit, and banking markets. Greg Baer, BPI President & CEO, explains the reasons behind the lasuit: “BPI supports a competitive marketplace where consumers control how their personal financial data is used and with whom it is shared, so long as their data remains protected. Unfortunately, the CFPB delivered a rule that treats sensitive financial data with as little care as a consumer’s web browsing history. If left unchallenged, technology companies subject to little to no oversight will have access to very sensitive information, like how much is in your account and where you spend your money. Banks have a responsibility to protect customers and their data, and this rule compromises these responsibilities, putting bank customers at risk.” Under the provisions, the CFPB insists that third parties will only be able collect, use, or retain data to deliver the product the consumer requested. They cannot secretly use that data for their own unrelated business reasons - for example, by offering consumers a loan using consumer data that they also use for targeted advertising. But the BPI and KBA argue that the entire responsibility of protecting customers is left to banks under the final rule, while the CFPB takes no accountability for the oversight or supervision of data recipients. Mandating data sharing without requiring third parties to sufficiently protect that data will undermine existing consumer protection laws, the say. Ballard W. Cassady, Jr., Kentucky Bankers Association president & CEO, states: “The CFPB’s 1033 rulemaking jeopardizes the safety and soundness of our banking system and fails to protect consumer data. We are challenging the CFPB to ensure that banks can continue to protect their consumers and the integrity of the financial system in a safe and sound manner.” The CFPB is facing fights on multiple fronts from recalcitrant industry associations over its rulemaking powers. Earlier this week The Fintech Association filed its own lawsuit challenging the agency’s new buy now, pay later rules. Meanwhile, JPMorgan is pondering legal action over an ongoing probe into the abuse of Zelle payments by scammers.