The Consumer Financial Protection Bureau (CFPB) on Tuesday announced a new law aimed at increasing competition that would require financial institutions, credit card issuers and other financial providers to allow consumers to transfer their data to other institutions. announced the rules.
The CFPB stated: final rules Promote competition and consumer choice, lower loan prices, and improve customer service.
“Too many Americans are trapped in financial products with poor interest rates and poor service,” CFPB Director Rohit Chopra said in a statement. “Today's action will help people get better rates and service on their bank accounts, credit cards and more.”
The CFPB argues that the new rules will allow customers to shop more and, as a result, businesses will offer improved products to attract new customers and retain old ones. There is.
The rules allow consumers to access, or allow third parties to access, data including transaction information, account balance information, and information needed to initiate and make future payments. Financial providers will now have to make that information available upon request “without charging a fee.”
“This rule brings the United States closer to a competitive, safe, secure, and trusted “open banking'' system. “Today's rule is part of the CFPB's efforts to finally activate Section 1033 of the Consumer Financial Protection Act, a dormant statutory authority enacted by Congress in 2010,” the CFPB said in a release. mentioned in.
Compliance with the new rules will be implemented in stages, with larger providers required to comply sooner than smaller providers. The largest institutions must be compliant by April 1, 2026, and smaller institutions must be compliant by April 1, 2030.
