CFPB headquarters in Washington, D.C. Credit/Shutterstock
The CFPB is seeking federal approval to reinstate compliance reporting tied to its consumer financial privacy rule, a requirement that affects hundreds of thousands of financial institutions across the United States.
In a filing scheduled for publication in the Federal Register, the CFPB requested that the Office of Management and Budget reinstate an information collection related to Regulation P, the rule implementing privacy protections under the Gramm-Leach-Bliley Act.
Regulation P governs how financial institutions handle consumers' nonpublic personal information and generally prohibits sharing that data with non-affiliated third parties unless the institution provides clear disclosures and allows customers the opportunity to opt out.
The Bureau estimated the requirement will affect approximately 462,760 institutions and financial service providers, including banks, credit unions and other lenders.
Compliance with the rule is expected to generate about 312,916 total annual burden hours, reflecting the time needed to prepare privacy notices, update policies and maintain required disclosures.
The request was part of the federal Paperwork Reduction Act process, which requires agencies to periodically obtain approval for regulatory information collections.
The CFPB is now accepting public comments on the proposal, including feedback on whether the reporting requirements remain necessary and whether the estimated compliance burden is accurate. Comments will be reviewed by the Office of Management and Budget before a final determination is made.
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