The CFPB recently published a circular clarifying liability under consumer financial protection law for financial companies that fail to safeguard consumer data. The circular describes how firms may be violating the CFPA’s prohibition on unfair acts or practices with respect to the handling of consumer data by not implementing adequate measures to protect against data security incidents. According to the CFPB. in the event of large scale, customer-base-wide breaches, consumers may become victims of targeted identify theft.
The Consumer Financial Protection Bureau (CFPB) recently released a set of Consumer Protection Principles aimed at the Fintech field. The Principles describe obligations when sharing or aggregating consumer financial information. The CFPB regulates and enforces consumer financial laws, and issued this release as part of its review of the Fintech industry. These Principles follow a request for information that the CFPB issued late last year, as well as insights from stakeholders that the CFPB summarized at the time it released the Principles.
Continue Reading CFPB Provides Guidance on Consumer Data Protection