WPF comments to CFPB regarding notice of proposed rulemaking on Personal Financial Data Rights

WPF submitted comments to the Consumer Financial Protection Bureau regarding its notice of proposed rulemaking regarding Personal Financial Data Rights. This was a particularly important NPRM because it touches on multiple aspects of financial data in our modern era, which means that it touches privacy, identity, poverty, and digital rights in the financial sector.

WPF applauds CFPB for paying attention to the privacy and security interests of consumers in its rulemaking. We also applaud the clear evidentiary basis that CFPB used to craft its proposal. WPF did recommend substantive changes regarding the role of Gramm-Leach Bliley (GLB), noting that GLB is a law that predates most of todays modern digital ecosystem in the financial sector, and GLB is not well-suited to solve privacy problems in today’s complex data ecosystems.

These comments discuss the role of GLB at length, and offer suggestions to improve the way GLB is utilized in the NPRM. Additionally, the comments discuss the role of identity in the modern financial sector, including mobile ID, and discuss core digital identity platforms and how they relate to modern financial services. The comments include a presentation of evidence regarding privacy and poverty in the U.S., with a request that privacy regulations are specifically studied for impacts and effectiveness among those living in poverty.

WPF has requested in the comments that regulations be tested against what the goals they were designed to accomplish, and that the results of the tests are published.

From the comments:

“We note … that GLB does not assist much here, and even where it offers assistance, it is often a challenge for consumers to find the time or know about how to effectuate a GLB opt out. GLB is not an adequate solo vehicle for consumer privacy protections in digital financial services. We further posit that poverty and inclusion need to be taken into consideration more clearly in this NPRM.”

WPF again applauds the CFPB for the overarching goals the NPRM articulates.