CFPB’s Proposed Confidentiality Rule Earns NAFCU Thumbs Up
File under “no brainer” the Consumer Financial Protection Agency’s proposed rule that would preserve the confidentiality of information disclosed to the regulator during the examination process.
The proposed amendment to 12 CFR part 1070 would add a new section providing that any person providing information to the bureau during the exam process “will not waive or otherwise affect any privilege” currently covered by state or federal law.
NAFCU Regulatory Affairs Counsel Dillon Shea said his trade association supports the proposed rule. He wrote in NAFCU’s official comments to the CFPB that “failure on the part of the CFPB to provide similar protection could lead to the disclosure of sensitive information that could cause litigation and safety and soundness concerns for credit unions.
“Further, as the law currently stands, covered entities may be understandably leery of providing some information to the CFPB; this situation benefits no one. Providing clarity on this important issue will ensure the rights of financial institutions while also allowing the CFPB to better do its job,” Shea said.
The proposed rule’s comment period ends Monday.