CFPB Lifts Hold on Consumer Data Collection

June 1, 2018, Written By John H. Oldshue
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.



The information contained within this article was accurate as of June 1, 2018. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About John H. Oldshue

john-oldshue
John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
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