Senate Directs GAO to Investigate CFPB
Number of Pages:2
Date Created:July 2, 2013
Date Uploaded to the Library:February 20, 2014
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JEB HENSARLING, TX, CHAIRMAN United States House Representatives Committee Financial Services Washington, D.C. 20515 MAXINE WATERS, CA, RANKING MEMBER TO: Members the Committee Financial Services FROM: FSC Committee Majority Staff DATE: July 2013 RE: July 2013, Subcommittee Financial Institutions and Consumer Credit Hearing Examining How the Consumer Financial Protection Bureau Collects and Uses Consumer Data The Subcommittee Financial Institutions and Consumer Credit will hold hearing Examining How the Consumer Financial Protection Bureau Collects and Uses Consumer Data, 10:00 a.m. Tuesday, July 2013, Room 2128 the Rayburn House Office Building. The sole witness for this hearing will Mr. Steven Antonakes, Acting Deputy Director, Consumer Financial Protection Bureau (CFPB). The Dodd-Frank Act and Data Collection Title the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) created the CFPB regulate and supervise the offering and provision consumer financial products services under federal consumer financial laws. The CFPB can enforce existing federal consumer financial protection rules and promulgate new rules. July 21, 2011, the CFPB assumed responsibility for certain consumer financial protection functions that were formerly the responsibilities the Board Governors the Federal Reserve System, the Office the Comptroller the Currency, the now-defunct Office Thrift Supervision, the Federal Deposit Insurance Corporation, the Federal Trade Commission, the National Credit Union Administration, and the Department Housing and Urban Development. Section 1022 the Dodd-Frank Act requires the CFPB monitor the risks consumers that may arise from financial products and services order support the CFPBs rulemaking and other functions. meet Section 1022s monitoring requirements, the Dodd-Frank Act granted the CFPB the authority gather information from time time regarding the organization, business conduct, markets, and activities covered persons and service providers.1 Dodd-Frank Act 1022(c)(4)(A) Section 1022 authorizes the CFPB gather information from variety sources, including examination reports, consumer complaints, voluntary consumer surveys interviews, and review available databases. Section 1022 also permits the CFPB require any company offering financial products services, and its affiliates and service providers, file in such form and within such reasonable period time the Bureau may prescribe rule order annual special reports, answers writing specific questions.providers, file in such form and within such reasonable period time the Bureau may prescribe rule order annual special reports, answers writing specific questions.providers, file in such form and within such reasonable period time the Bureau may prescribe rule order annual special reports, answers writing specific questions. Dodd-Frank Act 1022(c)(4)(B)(ii) Dodd-Frank Act 1022(c)(4)(C) Dougherty, Carter, U.S. Amasses Data Million Consumers Banks Object, Bloomberg, Apr. 17, 2013, available http://www.bloomberg.com/news/2013-04-17/u-s-amasses-data-on-10-million-consumers-as-banks-object.html. Section 1022 specifically prohibits the CFPB from using its information-collecting authority obtain records for purposes gathering analyzing the personally identifiable financial information consumers.3 also prohibits the CFPB from obtaining any personally identifiable information about consumer from company offering financial products services, and its affiliates and service providers, unless the consumer provides written permission for the disclosure; even then, the CFPB prohibited from making proprietary, personal, confidential consumer information public. Section 1022 also requires the CFPB issue rules regarding the confidential treatment information obtained under this section. Bloomberg News reported April article that the CFPB has begun collecting data least million consumers two distinct ways: compelling supervised entities provide consumer data upon request, and purchasing consumer data from outside sources.4 This hearing will provide Members with the opportunity learn more about the CFPBs collection consumer data. This hearing will also provide Members with the opportunity assess whether the CFPBs data collection efforts fully comply with the standards set forth the Dodd-Frank Act and other laws, and assess whether the CFPB properly safeguarding the confidentiality the consumer data has collected.