CFPB strengthens data privacy and cybersecurity with new rules
The Office of Consumer Financial Protection (CFPB) has implemented new regulations on cyber security and data privacy under the Fair Credit Information Act.
Businesses will need to adjust the way they use and share credit reports and background reports under the new regulation. The legislation will curb the exploitation of personal data in fund projections and credit reports.
The Fair Credit Reporting Act dictates how companies report on consumers and how they collect data on consumer reports for credit, insurance, housing and employment. The Act aims to protect consumer privacy and ensure that companies make accurate credit reports. Under the new rules, additional layers of security will protect consumers and allow companies to collect data only when they are essential to their services.
In October 2021, the CFPB ordered big tech companies like Amazon, Apple, Facebook (Meta) and Google to provide information on their payment system plans to examine their use of consumer data.
In June 2022, the U.S. House of Representatives had proposed to Congress a privacy bill that would regulate how large technology companies, such as Meta and Google, collect customer data for their services. The bill has passed the vote of the House Energy and Commerce subcommittee and will be advanced for another vote.
The CFPB plans to hold companies accountable for illegal debt collection and misidentification of consumers in fund reports. This is a step toward curbing high technology and safeguarding compliance that has been constantly assumed by Congress.
CFPB Director Rohit Chopra commented on the need for the CFPB to defend consumer privacy and reduce criminal misconduct by credit reporting companies: “Americans are now subject to 24-hour surveillance. hours of the day by large commercial companies seeking to monetize their personal data.Although Congress and regulators must do more to protect our privacy, the CFPB will take steps to use the Fair Credit Reporting Act to combat the misuse and abuse of personal data in the detection of funds and credit reports “.
In April, the CFPB announced that it would invoke the Dodd-Frank Act to control non-bank fintechs that could pose a threat to Americans.