CFPB Keeps Data on Nearly 600 Million Credit Card Accounts

CFPB Keeps Data on Nearly 600 Million Credit Card Accounts

October 8, 2014         Written By Natalie Rutledge

The Consumer Financial Protection Bureau is collecting sensitive financial data on close to 600 million credit card accounts but lacks adequate privacy and security plans to protect the information, according to a new report from the Government Accountability Office.

“The CFPB’s massive data collection effort is an unwarranted, unwelcome intrusion into the private financial lives of millions of Americans,” said Senator Mike Crapo in a statement. Crapo requested the nonpartisan GAO report .

The report also found the CFPB was collecting data on 11 million credit reports, 29 million active mortgages and 5.5 million private student loans.

The CFPB only collected information for 25 to 75 million credit card accounts; the remainder of the information comes from data-sharing agreements with another financial agency.

The concern is not so much the volume of information collected, but rather in the vague protocol details laid out to protect it. The CFPB does not have a written procedure for data collection and security, which could result in inconsistencies in the execution of the group’s privacy policy.

Senator Crapo originally requested the study because he was concerned about the scope of the agency’s collective practices.

“At a time when data and identity-related crimes are at an all-time high, the last thing the American people need is one more federal agency collecting their private financial information,” he said.

A CFPB spokesman responded to the report by saying, “The GAO’s report recognizes that the Bureau collects data on a scale similar to other regulators and uses that data to carry out its mission to protect consumers. The CFPB agrees with the GAO’s recommendations, which focus primarily on documentation of processes related to data collection.”

CFPB Director Richard Cordray says that the organization is already in the process of developing written guidelines for data collection as a result of the GAO report. “As GAO notes in its report, access to such data allows the Bureau to ‘better detect risks in consumer financial markets and improve federal oversight of consumer financial laws.'”



The information contained within this article was accurate as of October 8, 2014. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


natalierutledge

About Natalie Rutledge

Natalie Rutledge majored in Communications at Mississippi State University. She was in sales for a number of businesses and spent nine years working as a communications advisor to various entities. Natalie can be contacted directly at natalie@lowcards.com
View all posts by Natalie Rutledge
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : Earn cash back TWICE. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus