CFPB Lifts Hold on Consumer Data Collection
The Consumer Financial Protection Bureau announced they will resume the collection of private consumer data. Acting director Mick Mulvaney froze this form of data collection in December in the wake of cybersecurity concerns. Mulvaney now believes the bureau has the appropriate security measures to collect “personally identifiable information and other sensitive data.”
The bureau uses this personal data to verify that financial institutions are abiding by consumer protection laws. Critics have long raised concerns about this practice, and it was one of the first changes Mulvaney made when he was appointed as interim director by the Trump Administration. Mulvaney says an independent agency reviewed the data collection practices and found that “externally facing bureau systems appear to be well-secured.”
Since former director Richard Cordray stepped down from office to run for Ohio governor, Mulvaney has changed the agency’s official name to the Bureau of Consumer Financial Protection, and he’s discussed blocking consumer access to bank complaints. He also charged Wells Fargo a record-breaking $1 billion fine for overcharging auto loan customers, arguably in retaliation for the relatively small $185 million fine the bureau charged the bank for its fake account scandal, prior to Mulvaney’s leadership.