WASHINGTON (3/13/12)--Protections for private information that financial institutions and others submit to the Consumer Financial Protection Bureau (CFPB) could be codified under a new CFPB proposal.
The proposal would ensure that groups or individuals that supply information to the CFPB would not waive their right to privacy protections, and clarify that these protections would remain intact when privileged information is transferred from the CFPB to other federal or state agencies.
CFPB Director Richard Cordray called the proposal "a common sense rule" that is consistent with the CFPB's practice of guarding the confidentiality of supervised institutions' information. "This rule will allow us to further protect consumers by facilitating the flow of information between the Bureau and its supervised entities," he added.
The proposed rule will be open for public comment for 30 days after it is published in the Federal Register.
Bills that would provide these same types of privacy protections have been offered in the House and Senate, and CUNA has said it appreciates the intent of these bills. CUNA has worked closely with legislators and the National Credit Union Administration to ensure that both bills sufficiently protect credit unions.