CUNA Senior Director of Advocacy and Counsel Madison Rose and NAFCU Senior Counsel for Research and Policy Andrew Morris co-authored the Dec. 29 letter and suggested 13 "substantive" and "important" changes to the proposed rule. Those changes include:

Provide tiered exemptive relief for covered data providers.
Provide longer compliance timeframes with transitional relief for covered data providers.
Recognize a qualified industry standard before advancing a final rule.
Establish a framework that permits data providers to charge reasonable fees for third party access.
Withdraw granular technical performance specifications for the developer interface.
Substantially curtail the categories of covered data.
Exclude certain data fields in the enumerated categories of covered data to the extent the categories themselves are not substantially curtailed.
Issue an additional request for information to refine cost estimates before proceeding with a final rule.
Create a safe harbor for data providers who rely on the representations of third parties about their data security and risk management practices.
Establish a clear allocation of liability to third parties who mishandle covered data or abuse their consumers' trust.
Accommodate supervised financial institutions who offer legitimate secondary uses of covered data.
Establish a framework for accreditation that leverages the CFPB's supervisory resources to whitelist third parties and alleviate excessive due diligence costs for data providers.
Establish clear data security standards and an appropriate supervisory framework for third parties that access covered data.

The letter added, "To mitigate the harm of the proposal and the hazards of rushing to publish a final rule, the CFPB should postpone the rulemaking and engage credit unions and other data providers through industry town halls, working groups, and pilot programs, then embark upon a new, better-informed rulemaking that takes into account the many harms that smaller entities may face without a robust RFA analysis. More meaningful engagement would yield more accurate assessments of costs, technical obstacles, and implementation timeframes, all of which the CFPB has severely underestimated."

Instant Insights /

CU Trades List 13 'Important' Changes to CFPB's Proposed Data Reporting Rule

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