81 FR 83806 - Request for Information Regarding Consumer Access to Financial Records

BUREAU OF CONSUMER FINANCIAL PROTECTION

Federal Register Volume 81, Issue 225 (November 22, 2016)

Page Range		83806-83811
FR Document		2016-28086
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) provides for consumer rights to access financial account and account-related data in usable electronic form. The Bureau of Consumer Financial Protection (Bureau or CFPB) is seeking comments from the public about consumer access to such information, including access by entities acting with consumer permission, in connection with the provision of products or services that make use of that information. Submissions to this Request for Information will assist market participants and policymakers to develop practices and procedures that enable consumers to realize the benefits associated with safe access to their financial records, assess necessary consumer protections and safeguards, and spur innovation.
Federal Register, Volume 81 Issue 225 (Tuesday, November 22, 2016)
[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)]
[Notices]
[Pages 83806-83811]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28086]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

[Docket No.: CFPB-2016-0048]


Request for Information Regarding Consumer Access to Financial 
Records

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice and request for information.

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SUMMARY: The Dodd-Frank Wall Street Reform and Consumer Protection Act 
(Dodd-Frank Act) provides for consumer rights to access financial 
account and account-related data in usable electronic form. The Bureau 
of Consumer Financial Protection (Bureau or CFPB) is seeking comments 
from the public about consumer access to such information, including 
access by entities acting with consumer permission, in connection with 
the provision of products or services that make use of that 
information. Submissions to this Request for Information will assist 
market participants and policymakers to develop practices and 
procedures that enable consumers to realize the benefits associated 
with safe access to their financial records, assess necessary consumer 
protections and safeguards, and spur innovation.

DATES: Comments must be received on or before February 21, 2017.

ADDRESSES: You may submit responsive information and other comments, 
identified by Docket No. CFPB-2016-0048, by any of the following 
methods:
     Electronic: Go to http://www.regulations.gov. Follow the 
instructions for submitting comments.
     Email: [email protected]. Include Docket 
No. CFPB-2016-0048 in the subject line of the message.
     Mail: Monica Jackson, Office of the Executive Secretary, 
Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 
20552.
     Hand Delivery/Courier: Monica Jackson, Office of the 
Executive Secretary, Consumer Financial Protection Bureau, 1275 First 
Street NE., Washington, DC 20002.
    Instructions: Please note the number associated with any question 
to which you are responding at the top of each response (you are not 
required to answer all questions to receive consideration of your 
comments). The Bureau encourages the early submission of comments. All 
submissions must include the document title and docket number. Because 
paper mail in the Washington, DC area and at the Bureau is subject to 
delay, commenters are encouraged to submit comments electronically. In 
general, all comments received will be posted without change to http://www.regulations.gov. In addition, comments will be available for public 
inspection and copying at 1275 First Street NE., Washington, DC 20002, 
on official business days between the hours of 10 a.m. and 5 p.m. 
eastern standard time. You can make an appointment to inspect the 
documents by telephoning 202-435-7275.
    All submissions, including attachments and other supporting 
materials, will become part of the public record and subject to public 
disclosure. Sensitive personal information, such as account numbers or 
Social Security numbers, or names of other individuals, should not be 
included. Submissions will not be edited to remove any identifying or 
contact information.

FOR FURTHER INFORMATION CONTACT: For general inquiries, submission 
process questions or any additional information, please contact Monica 
Jackson, Office of the Executive Secretary, at 202-435-7275.

    Authority:  12 U.S.C. 5511(c); 12 U.S.C. 5512(c).

SUPPLEMENTARY INFORMATION: The Bureau is seeking public comment through 
this Request for Information (RFI) to better understand the consumer 
benefits and risks associated with market developments that rely on 
access to consumer financial account and account-related information. 
This RFI generally refers to such information as ``consumer financial 
account data.'' \1\ It further refers to consumer access to such 
information, including access by entities acting with consumer 
permission, as ``consumer-permissioned'' access. The RFI also labels 
account information that is obtained via consumer-permissioned access 
as ``consumer-permissioned account data.''
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    \1\ The RFI sometimes distinguishes ``consumer financial account 
data'' from ``non-financial'' consumer account data, the latter 
being held by companies that offer consumers non-financial products 
and services. The RFI uses the term ``consumer account data'' to 
refer collectively to both kinds of consumer account data, financial 
and non-financial.

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[[Page 83807]]

    The information obtained in response to this RFI may help industry 
develop best practices to deliver benefits to consumers and address 
potential consumer harms. It may also help the Bureau in prioritizing 
resources. For example, the Bureau may use the information obtained to 
evaluate whether any guidance or other action by the Bureau is called 
for, including future rulemaking.
    The Bureau encourages comments from all members of the public. The 
Bureau anticipates that the responding public may encompass the 
following groups, some of which may overlap in part:
     Individual consumers;
     Consumer and civil rights groups;
     Privacy advocates;
     Consumer financial product and service providers that 
control or possess data about consumer use of their products and 
services (for purposes of this RFI, ``consumer financial account 
providers'');
     Consumer financial product and service providers that 
rely, at least in part, on consumer-permissioned access to consumer 
financial account data (for purposes of this RFI, ``consumer-
permissioned providers'' or ``permissioned parties''); \2\
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    \2\ For purposes of this RFI, consumer-permissioned providers 
are third-party providers. Thus, consumer financial account 
providers do not themselves count as consumer-permissioned providers 
by virtue of using the account data that they already hold to 
deliver additional services to customers.
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     Entities that obtain consumer financial account data 
directly from consumer financial account providers for consumer-
permissioned providers (for purposes of this RFI, ``account 
aggregators'');
     Consumer reporting agencies;
     Data brokers, processors and platform providers;
     Regulators;
     Providers of non-financial consumer products and services 
that may have knowledge of or experience in the use of consumer-
permissioned account data to provide products and services to 
consumers;
     Participants in non-U.S. consumer markets with knowledge 
of or experience in the use of consumer-permissioned account data to 
provide products and services to consumers; and
     Any other interested parties.

Part A: Regulatory Framework Applicable to Consumer-Permissioned Access 
to Account Information

General Background

    In the Dodd-Frank Act, Congress instructed the Bureau to implement 
and enforce consumer financial law ``for the purpose of ensuring that 
all consumers have access to markets for consumer financial products 
and services and that markets for consumer financial products and 
services are fair, transparent, and competitive.'' \3\ Congress further 
instructed the Bureau to exercise its authorities so that ``markets for 
consumer financial products and services operate transparently and 
efficiently to facilitate access and innovation.'' \4\
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    \3\ 12 U.S.C. 5511(a).
    \4\ 12 U.S.C. 5511(b)(5).
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    The Bureau has jurisdiction with respect to a number of Federal 
statutes and regulations that establish rights and protections related 
to consumer financial account-related information. These well-
established statutory and regulatory frameworks cover a broad range of 
entities, including traditional providers of consumer financial 
products and services and newer entrants. In some cases, they may cover 
service providers to such entities as well.
    Many of these frameworks impose requirements that consumer 
financial account providers disclose certain information to their 
customers about their accounts. Disclosure requirements may include, 
for example, periodic statements with account information on 
transactions and fees or disclosures about the collection, sharing, 
use, and protection of consumers' non-public personal information.\5\ A 
consumer also has the right to access information about himself or 
herself held by certain entities, such as information in a consumer 
reporting agency's file on the consumer.\6\
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    \5\ See, e.g., Regulation Z, 12 CFR 1026.5(b)(2) and 1026.7(b) 
(implementing the Truth in Lending Act with respect to periodic 
statements for credit cards); Regulation E, 12 CFR 1005.9(b) 
(implementing the Electronic Fund Transfer Act with respect to 
periodic statements for traditional bank accounts and other consumer 
asset accounts); Regulation DD, 12 CFR 1030.6(a)(3) (implementing 
the Truth in Saving Act with respect to periodic statements for 
deposit accounts held at depository institutions); Gramm-Leach 
Bliley Act, 15 U.S.C. 6803, and its implementing regulations. 
Further, on October 5, 2016, the Bureau issued a final rule amending 
Regulations E and Z for prepaid accounts. For prepaid accounts, the 
final rule provides that as an alternative to providing the periodic 
statement, a financial institution must, among other things, make an 
electronic history of a consumer's account transactions available to 
the consumer that covers at least 12 months preceding the date the 
consumer electronically accesses the account. The requirement will 
become effective on October 1, 2017.
    \6\ Fair Credit Reporting Act, 15 U.S.C. 1681g(a).
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    These and other legal frameworks also establish substantive 
consumer protections with respect to certain types of consumer 
information. Such protections include limitations on the use of such 
information, limitations on the disclosure of such information to third 
parties, and requirements relating to the security of such 
information.\7\ Other protections include limitations on consumer 
liability if a consumer's information is lost or stolen and the 
consumer suffers a loss from unauthorized use or an erroneous 
electronic debit.\8\ The Bureau also has authority under Title X to 
take action to prevent covered persons and service providers from 
committing or engaging in unfair, deceptive, or abusive acts or 
practices (UDAAPs). An entity's consumer data privacy or security 
practices can violate UDAAP standards.\9\
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    \7\ See, e.g., Fair Credit Reporting Act, 15 U.S.C. 1681 through 
1681x, Gramm-Leach-Bliley Act, 15 U.S.C. 6801 through 6809, and 
their implementing regulations.
    \8\ TILA, as implemented by Regulation Z, protects credit card 
consumers from unauthorized credit card use. See TILA section 133; 
15 U.S.C. 1643; 12 CFR 1026.12(b). EFTA, as implemented by 
Regulation E, does the same with respect to EFTs. See EFTA section 
909(a); 15 U.S.C. 1693g(a); 12 CFR 1005.6(b)(2).
    \9\ In March 2016 the Bureau entered into a consent order with a 
provider of a consumer-facing, online payment network. Among other 
things, the Bureau found that the entity falsely represented to 
consumers that it employed reasonable and appropriate measures to 
protect data obtained from consumers from unauthorized access. (See 
http://files.consumerfinance.gov/f/201603_cfpb_consent-order-dwolla-inc.pdf.) Relying on section 5 of the Federal Trade Commission Act, 
which makes unlawful all ``unfair or deceptive acts or practices in 
or affecting commerce,'' see 15 U.S.C. 45(a)(1), the FTC has also 
taken action against companies that fail to take reasonable measures 
to protect the security of consumer data. See, e.g., FTC Matter/File 
Numbers 1023142-X120032 (Wyndham Worldwide Corporation); 052-3148 
(CardSystems Solutions, Inc.); 052-3136 (Superior Mortgage Corp.); 
052-3096 (DSW Inc.); 052-3117 (Nations Title Agency, Inc.); 062-3057 
(Guidance Software, Inc.); 072-3046 (Life is good, Inc.); 072-3055 
(TJX Companies); and 052-3094 (Reed Elsevier, Inc.).
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Consumer-Permissioned Access to Consumer Financial Account Information

    In the context of this existing statutory and regulatory landscape, 
section 1033 of the Dodd-Frank Act provides for consumer rights to 
access information.\10\ More specifically, section 1033 requires that 
``[s]ubject to rules prescribed by the Bureau, a covered person shall 
make available to a consumer, upon request, information in the control 
or possession of such person concerning the consumer financial product 
or service that the consumer obtained from such covered person, 
including information relating to any transaction, or series of 
transactions, to the account including costs, charges,

[[Page 83808]]

and usage data.'' \11\ Section 1033 further provides that the 
information must be in an electronic form usable by the consumer, 
although it does not impose any duty to maintain or keep any 
information about a consumer. Additionally, section 1033 applies only 
to information that the consumer financial account data holder can 
``retrieve in the ordinary course of its business with respect to that 
information.'' \12\
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    \10\ 12 U.S.C. 5533.
    \11\ 12 U.S.C. 5533(a). The Dodd-Frank Act defines ``covered 
person'' in detail at 12 U.S.C. 5481(6). The Act defines a 
``consumer'' as ``an individual or an agent, trustee, or 
representative acting on behalf of an individual.'' 12 U.S.C. 
5481(4).
    \12\ See id., 5533(c), & 5533(b)(4). Section 1033 contains a 
number of other exceptions. See 5533(b)(1)-(3). In addition, it 
requires the Bureau to prescribe standards to promote the 
development and use of standardized formats for information to be 
made available to consumers, including through the use of machine 
readable files. See 5533(d).
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Part B: Current Market Practices in Connection With Consumer-
Permissioned Access to Account Information

General Market Practice

    In recent years, the availability of consumer financial account 
data in electronic form, often in real-time or near-real-time, has made 
possible a range of benefits to consumers. When made readily available, 
such data foster consumer convenience, and they can help consumers 
understand and control their financial lives, make useful decisions, 
monitor spending and debt, set and achieve savings goals, communicate 
effectively with their financial service providers, and solve financial 
problems in timely ways.\13\
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    \13\ See, e.g., Aite Group, Personal Financial Management: A 
Platform for Customer Engagement (Feb. 24, 2010).
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    Many providers of consumer financial products and services, from 
traditional providers like banks and credit unions to newer entrants 
such as online lenders, make available to consumers extensive 
electronic data about their accounts at that firm. Many consumers, 
however, maintain accounts with several financial service providers. As 
a result, by the late 1990s, market participants began to offer 
consumers services that depended, at least in part, on broader, 
consumer-permissioned access to data across a consumer's financial 
accounts--sometimes combined with other information about the consumer. 
Traditional account providers like banks have been the predominant 
users of such consumer account data. By obtaining data about the 
consumers' other accounts, banks and other traditional market 
participants have been able to supplement their use of existing in-
house data for online advisory and account management services.\14\ 
Over time, however, newer entrants have also begun to provide products 
and services to consumers using consumer-permissioned, electronically-
sourced account data.\15\
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    \14\ As far back as 2001, the Office of the Comptroller of the 
Currency (OCC) issued guidance to depository institutions under its 
supervision about using third parties to provide data aggregation 
services. See Office of the Comptroller of Currency, OCC Bulletin 
2001-12, Bank-Provided Account Aggregation Services (February 28, 
2001), available at https://www.occ.gov/news-issuances/bulletins/2001/bulletin-2001-12.html#.
    \15\ See, e.g., https://www.mint.com/terms (``The Mint Service 
is a personal finance information management service that allows you 
to consolidate and track your financial information. The Mint 
Service is provided to you by Intuit without charge[.]'') Intuit is 
Mint's parent company.
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    Some consumer-permissioned providers have used their own 
proprietary technology solutions to access data from consumer financial 
account providers. However, given the large number of potential data 
sources and the transaction costs associated with obtaining consumer 
account data (sometimes on a recurring basis), other providers have 
relied on third-party ``account aggregators'' to provide the necessary 
technology. (Some entities have provided both account aggregation 
services to third parties and direct services to consumers using 
permissioned data.) In either case, the process of accessing consumer 
account data is often referred to as account or data aggregation.\16\
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    \16\ This RFI generally uses the terms ``account aggregation'' 
or ``aggregation.''
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    Technology advances have facilitated the development of aggregation 
services and the associated delivery of products and services that rely 
on consumer account data access. The Bureau understands that methods to 
access consumer account data--and to obtain consumer permission to do 
so--are technically complex and actively evolving. To enable access, 
consumers are often prompted to provide their online account 
credentials, including user name and password, and other forms of 
authentication such as knowledge-based security questions. Depending on 
the product or service, consumers may be asked to permit access only to 
a single account with an individual company or financial institution, 
or to multiple accounts held by a number of financial institutions and 
other companies.
    Typically, consumers provide their account credentials for a 
particular company or financial institution where they hold an account. 
Those credentials are then used to obtain their account data through 
either: (1) A structured data feed or an application program interface 
(API) hosted by the company or financial institution, or (2) the 
company or financial institution's consumer-facing Web site in a 
process known as screen-scraping.\17\ If an account aggregator is an 
intermediary in this process, it will generally transmit the consumer's 
data to permissioned parties through an API. The Bureau understands 
that account aggregators, as well as product and service providers that 
use consumer-permissioned data, sometimes store consumer account data 
for a range of uses, including those discussed further below. In 
addition, they sometimes obtain updated consumer account data on a 
recurring basis.
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    \17\ For example, Yodlee, an account aggregator, reports that 75 
percent of the data it aggregates from over 14,500 sources is 
collected through structured feeds from its financial institution 
customers and other financial institutions. See Envestnet, 2015 
Annual Report, at 14 (Feb. 29, 2016), available at http://ir.envestnet.com/phoenix.zhtml?c=235783&p=irol-IRHome. Yodlee was an 
independent company until it was acquired by Envestnet in 2015.
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Consumer Benefits From Specific Market Uses

    The Bureau is aware of a number of types of products and services 
provided to consumers that make use of consumer financial account data 
on a consumer-permissioned basis, including the following:
     Personal financial management: Many personal financial 
management (PFM) tools allow consumers to view their account 
information from many accounts and financial service providers in a 
single, consolidated view.
     Automatic or motivational savings: Some companies provide 
automatic savings mechanisms for consumers to choose as well as 
messages to encourage savings. These companies may use algorithms that 
rely on permissioned account data to determine how much a consumer can 
afford to save or, at the transaction level, to ``round-up'' 
transaction amounts to the next dollar and save the remainder.
     Budgeting analysis and advice: Many providers allow 
consumers to set budgets and analyze their spending activity based on 
the classification of transaction data into categories like 
entertainment, food, and health care. Some services send a mobile or 
email notification when a consumer is over-budget or close to being 
over-budget. Consumers may be provided with other budgetary advice 
based on analysis of their transaction data, including comparisons with 
peer groups.

[[Page 83809]]

     Product recommendations: Some advisors or providers may 
make product recommendations based on consumer financial account data. 
For example, if checking account data show the consumer incurring ATM 
fees, a provider might recommend other checking accounts with lower or 
no ATM fees.
     Account verification: Many consumer financial and non-
financial products and services require consumers to verify their 
identity and bank account information. Account aggregation technology 
may be used for near-instant verification of account ownership. When 
used in this manner, such technology eliminates any need for the 
consumer to enter their account and routing number, a manual process 
that carries the possibility of typographical error. Account 
aggregation technology used for verification purposes can also 
eliminate the use of ``micro-deposits,'' which is a verification method 
that can take significantly longer to confirm account ownership.
     Loan application information verification: Some lenders 
may access consumer financial account data, such as the account's 
deposit history, to verify income and other stated loan application 
data. Aggregation can make this kind of verification process more 
efficient and more reliable.
     Credit decisioning: Some lenders may be using or 
considering using consumer or small business owner account data for 
underwriting or credit scoring purposes.
     Cash flow management: Some third-party providers notify 
consumers when transactions occur, when funds clear, or when an account 
balance approaches or dips below zero. These alerts can help consumers 
manage their cash flow and, in some cases, transfer money into their 
account to avoid NSF and overdraft fees.
     Funds transfer and bill payment: Some providers may obtain 
consumer authorizations to transfer funds for other purposes, such as 
timely bill payment or automatic transfers to retirement plans, and use 
information based on consumer financial account data to inform 
decisions about the transfer, such as its size and timing. Some 
companies also receive available funds data to verify account balances 
before initiating an account debit. Using that data they can avoid 
debiting an account that has insufficient funds and triggering NSF or 
overdraft fees for the consumer. In addition, some providers may 
retrieve bill information for consumers and allow the consumer to pay 
their bills, a process sometimes known as EBPP (for electronic bill 
presentment and payment).
     Fraud and identity theft detection: Some service providers 
may analyze consumer transactions across various financial accounts to 
identify and alert consumers to potential fraudulent or erroneous 
transactions.
     Investment management and other non-consumer business 
services: Some product and service providers rely on consumer financial 
account data to provide individuals with investment management 
services. In a similar manner, non-consumer data (such as data from a 
small business's checking account) may be used to provide accounting 
and expense management services to small business owners, their 
investors, or lenders.

Current Market Issues and Risks

    Market developments to date speak to the consumer benefits 
associated with consumer-permissioned account data access. However, 
such access may also present risks to market participants, including 
consumers. Public discussion of access to consumer financial account 
data has focused significant attention on data security and privacy 
issues.\18\ In particular, some consumer financial account providers 
have raised concerns about whether account aggregators or permissioned 
parties employ adequate security and privacy procedures with respect to 
consumers' online account credentials and consumer account data 
obtained through aggregation.\19\
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    \18\ In a different context, commenters have told the Bureau 
that such concerns--what data will be retrieved, how securely it 
will be stored, and with whom it will be shared--may cause consumers 
not to adopt new, potentially beneficial products and services. See 
Consumer Financial Protection Bureau, Report on Mobile Financial 
Services, at 54-64 (November 2015) (listing ``security'' and 
``privacy'' as the top two challenges or risks to adoption of mobile 
financial services by the underserved), available at http://files.consumerfinance.gov/f/201511_cfpb_mobile-financial-services.pdf.
    \19\ See Peter Rudegeair, J.P. Morgan Warns It Could Unplug 
Quicken and Quickbooks Users, Wall St. J. (Nov. 24, 2015), available 
at http://www.wsj.com/articles/j-p-morgan-may-unplug-some-customers-access-to-account-data-1448375950?alg=y.
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    Privacy and security concerns have also been raised about whether 
account aggregators and permissioned parties obtain or retain more 
consumer information than is necessary for the specific product or 
service being provided, as well as the extent to which--and terms under 
which--they may use the data for purposes other than providing the 
requested product and service and may make data available to other 
entities.\20\ A number of parties have also raised concerns about the 
application of the Fair Credit Reporting Act in this area.\21\ In 
addition, some consumer financial account providers have expressed 
concern about their liability for unauthorized transactions that may 
result from a breach of consumer credentials or consumer financial 
account data held by an account aggregator or a permissioned party.\22\ 
The Bureau understands that discussions among market participants 
surrounding these and other security and privacy-related issues are 
ongoing.
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    \20\ See, e.g., Bradley Hope, Provider of Personal Finance Tools 
Tracks Bank Cards, Sells Data to Investors, Wall St. J. (Aug. 6, 
2015) (reporting that Yodlee sells some of the data it collects to 
investment firms but that Yodlee has not publicly disclosed that it 
does so, and that Yodlee has stated that individuals' identities 
cannot be discerned from its data set), available at http://www.wsj.com/articles/provider-of-personal-finance-tools-tracks-bank-cards-sells-data-to-investors-1438914620.
    \21\ See, e.g., Federal Reserve Bank of Philadelphia, Compliance 
Corner (Q4 2001), On-line Aggregation: Benefits and Risks, at CC4, 
available at https://www.philadelphiafed.org/bank-resources/publications/compliance-corner/2001/q4cc_01.pdf.
    \22\ See, e.g., Jamie Dimon, Letter to Shareholders, at 21 
(April 6, 2016) (expressing ``extreme concern'' over, among other 
things, data security and privacy, because customers have let 
aggregators access their bank accounts and account information); see 
also, Robin Sidel, Big Banks Lock Horns with Personal-Finance Web 
Portals, Wall St. J., Nov. 4, 2015, available at http://www.wsj.com/articles/big-banks-lock-horns-with-personal-finance-web-portals-1446683450.
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    The Bureau also understands that market participants, including 
financial institutions that provide consumer deposit and other 
financial accounts, non-financial providers of consumer products and 
services, account aggregators, and permissioned parties continue to 
address their working arrangements, often bilaterally, with respect to 
consumer account data. Those efforts encompass the sharing of technical 
burdens, the frequency and volume of data provision, counterparty 
vetting, consumer protection obligations (particularly in the event of 
a data breach), compensation and indemnity arrangements, and other 
concerns. The Bureau believes, however, that such market participants 
do not necessarily share common views about consumer protection and 
other consumer interests.
    More fundamental still, the Bureau does not believe that consumer 
views have been adequately represented in this area. The Bureau is 
concerned, therefore, that some market participants may decide to 
restrict consumer-permissioned access to data in ways that undermine 
consumer interests identified in section 1033--and that are broader 
than necessary to address legitimate privacy and security concerns.

[[Page 83810]]

Part C: Questions Related to Consumer-Permissioned Access to Account 
Information

    This request for information is intended to cover practices--and 
potential practices--concerning consumer-permissioned access to 
consumer financial account data. The Bureau is interested in learning 
more about how consumer products and services may rely on such data, 
regardless of whether the products or services that make use of such 
data are technically ``consumer financial'' products or services, or 
whether such products also rely on consumer-permissioned data from non-
financial accounts or on data from other sources. So long as 
submissions shed light on the use of consumer-permissioned access to 
consumer financial account data, they will be responsive. Except where 
specifically noted, therefore, these questions use consumer 
``products'' and ``services'' to refer to consumer products or services 
that are financial or non-financial, but that rely at least in part on 
consumer-permissioned access to consumer financial account data.
    Questions 1 through 17 below seek information about current market 
practices. Questions 18 through 20 enable commenters to describe how 
they believe market practices may or should change over time. Questions 
use ``consumer-permissioned access'' to cover direct access by the 
consumer upon request and access by the consumer's permissioned 
designees, but, where they deem it appropriate, respondents may provide 
different answers for these two forms of consumer access.

Current Practices

    1. What types of products and services are currently made available 
to consumers that rely, at least in part, on consumer-permissioned 
electronic access to consumer financial account data? What benefits do 
consumers realize as a result? This question covers the use of such 
data to deliver products or services or to assess eligibility for a 
given product or service.
    2. How many consumers are using or seeking to use such products or 
services? What demographic or other aggregate information is available 
about these consumers?
    3. To provide or assess eligibility for these products and 
services, what kinds of consumer financial account data are being 
accessed, by what means, under what terms, and how often? How long is 
accessed data stored by permissioned parties or account aggregators?
    4. To provide or assess eligibility for these products and 
services, what kinds of non-financial consumer account data are being 
accessed by parties that also access consumer financial account data? 
By what means, under what terms, and how often? How long is accessed 
data stored by permissioned parties or account aggregators?
    5. What types of companies offer products and services that rely, 
at least in part, on consumer-permissioned electronic access to 
consumer financial account data, either to deliver the product or 
service or to assess eligibility for the product or service? To what 
extent are such products and services offered by entities that offer 
transaction accounts? To what extent are they offered by other market 
participants?
    6. In what ways, if any, do consumer products and services that 
rely, at least in part, on consumer-permissioned electronic access to 
consumer financial account data differ according to whether the 
offering company provides or does not provide transaction accounts to 
consumers? Do any such differences impact consumers? If so, how?
    7. To what extent do market participants compete to offer consumer 
products and services that rely, at least in part, on consumer-
permissioned access to consumer financial account data? How does such 
competition impact consumers?
    8. What incentives or disincentives exist for consumer financial 
account providers to facilitate or discourage consumer-permissioned 
access to the account data that they hold by permissioned parties or 
account aggregators? In what ways do consumer financial account 
providers directly or indirectly facilitate or restrict consumer-
permissioned access to account data? What are the associated impacts to 
consumers and other market participants?
    9. What impediments, obstacles or risks do consumer financial 
account providers currently face in providing data to or allowing 
access to data by permissioned parties or account aggregators? Describe 
specific operational costs, risks, and actual or potential losses, and 
identify their specific causes.
    10. What impediments, obstacles or risks do permissioned parties or 
account aggregators currently face in obtaining such data? Describe 
specific operational costs, risks, and actual or potential losses, and 
identify their specific causes.
    11. What impediments, obstacles or risks do consumers currently 
face in obtaining--including permitting access to--such data?
    12. What security and other risks do consumers incur if they permit 
access to their financial account data in order to obtain a particular 
product or service? What steps have consumer financial account 
providers, account aggregators, permissioned parties and other users of 
consumer-permissioned account data taken to mitigate such risks? What 
information do these parties communicate to consumers about associated 
risks?
    13. In what ways, do account aggregators or permissioned parties 
use consumer-permissioned account data for purposes other than offering 
or facilitating the delivery of a specific product or service to the 
permissioning consumer? Do such companies continue to access or store 
data after the consumer ceases to use the product for which the 
permissioned data use was intended by the consumer? Do such companies 
share the data with other parties and, if so, under what terms and 
conditions? What are the associated impacts to consumers?
    14. When consumers permit access to their financial account data, 
what do they understand about: what data are accessed; how often they 
are accessed; for what purposes the data are used; whether the 
permissioned party or account aggregator continues to access, store or 
use such data after the consumer ceases to use the product or service 
for which the permissioned data use was intended by the consumer; and 
with which entities a permissioned party or account aggregator shares 
the data and on what terms and conditions? What drives or impacts their 
level of understanding? What impact does their level of understanding 
have on consumers and on other parties, including on consumers' 
willingness to permit access?
    15. To what extent are consumers able to control how data is used 
by permissioned parties or account aggregators that obtain that data 
via consumer-permissioned access? Are consumers able to control what 
data are accessed, how often they are accessed, for what purposes and 
for how long the data are used, and with which entities, if any, a 
permissioned party or account aggregator may share the data and on what 
terms and conditions? Are they able to request that permissioned 
parties, account aggregators, or other users delete such data? Is such 
data otherwise deleted and, if so, when and by what means? To what 
extent are consumers consenting to permissioned party and account 
aggregator practices with respect to access, use and sharing of 
consumer financial account data?
    16. Do consumer financial account providers vet account aggregators 
or permissioned parties before providing

[[Page 83811]]

data to them? Do consumer financial account providers perform any 
ongoing vetting of account aggregators or permissioned parties? If so, 
for what purposes and using what procedures? What are the associated 
impacts to consumers and to other parties?
    17. What industry standards currently exist, in development or 
otherwise, to enable consumer-permissioned access to financial account 
data?

Potential Market Developments

    18. What changes are or may be expected to happen to any market 
practice described in response to questions 1 through 17, why, and with 
what impacts to consumers, consumer financial account providers, 
permissioned parties, and account aggregators? Responses to this 
question may be integrated into responses to questions 1 through 17 if 
commenters prefer.
    19. What changes should happen to any market practice described in 
response to questions 1 through 18, why, and with what impacts to 
consumers, consumer financial account providers, permissioned parties, 
and account aggregators? Responses to this question also may be 
integrated into responses to questions 1 through 17 if commenters 
prefer.
    20. Are ``industry standard'' practices that provide consumers with 
data access comparable to that envisioned by section 1033 of the Dodd-
Frank Act likely to be broadly adopted by consumer financial account 
providers, permissioned parties and account aggregators in the absence 
of regulatory action? If not, how will ``industry standard'' practices 
be insufficient? What marketplace considerations are likely to bear on 
such developments? Generally, how will the advent of standard practices 
for consumer-permissioned access to consumer financial account data 
affect competition and innovation in various consumer financial service 
markets?

    Dated: November 14, 2016.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2016-28086 Filed 11-21-16; 8:45 am]
 BILLING CODE 4810-25-P
Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Notices 83807

The information obtained in response enforce consumer financial law ‘‘for the protections include limitations on the
to this RFI may help industry develop purpose of ensuring that all consumers use of such information, limitations on
best practices to deliver benefits to have access to markets for consumer the disclosure of such information to
consumers and address potential financial products and services and that third parties, and requirements relating
consumer harms. It may also help the markets for consumer financial products to the security of such information.7
Bureau in prioritizing resources. For and services are fair, transparent, and Other protections include limitations on
example, the Bureau may use the competitive.’’ 3 Congress further consumer liability if a consumer’s
information obtained to evaluate instructed the Bureau to exercise its information is lost or stolen and the
whether any guidance or other action by authorities so that ‘‘markets for consumer suffers a loss from
the Bureau is called for, including consumer financial products and unauthorized use or an erroneous
future rulemaking. services operate transparently and electronic debit.8 The Bureau also has
The Bureau encourages comments efficiently to facilitate access and authority under Title X to take action to
from all members of the public. The innovation.’’ 4 prevent covered persons and service
Bureau anticipates that the responding The Bureau has jurisdiction with providers from committing or engaging
public may encompass the following respect to a number of Federal statutes in unfair, deceptive, or abusive acts or
groups, some of which may overlap in and regulations that establish rights and practices (UDAAPs). An entity’s
part: protections related to consumer consumer data privacy or security
• Individual consumers; financial account-related information. practices can violate UDAAP
• Consumer and civil rights groups; These well-established statutory and standards.9
• Privacy advocates; regulatory frameworks cover a broad
• Consumer financial product and range of entities, including traditional Consumer-Permissioned Access to
service providers that control or possess providers of consumer financial Consumer Financial Account
data about consumer use of their products and services and newer Information
products and services (for purposes of entrants. In some cases, they may cover
this RFI, ‘‘consumer financial account In the context of this existing
service providers to such entities as statutory and regulatory landscape,
providers’’); well.
• Consumer financial product and Many of these frameworks impose
section 1033 of the Dodd-Frank Act
service providers that rely, at least in provides for consumer rights to access
requirements that consumer financial information.10 More specifically, section
part, on consumer-permissioned access account providers disclose certain
to consumer financial account data (for 1033 requires that ‘‘[s]ubject to rules
information to their customers about prescribed by the Bureau, a covered
purposes of this RFI, ‘‘consumer- their accounts. Disclosure requirements
permissioned providers’’ or person shall make available to a
may include, for example, periodic consumer, upon request, information in
‘‘permissioned parties’’); 2 statements with account information on
• Entities that obtain consumer transactions and fees or disclosures
the control or possession of such person
financial account data directly from concerning the consumer financial
about the collection, sharing, use, and product or service that the consumer
consumer financial account providers protection of consumers’ non-public
for consumer-permissioned providers obtained from such covered person,
personal information.5 A consumer also including information relating to any
(for purposes of this RFI, ‘‘account has the right to access information about
aggregators’’); transaction, or series of transactions, to
himself or herself held by certain
• Consumer reporting agencies; the account including costs, charges,
• Data brokers, processors and entities, such as information in a
platform providers; consumer reporting agency’s file on the 7 See, e.g., Fair Credit Reporting Act, 15 U.S.C.

• Regulators; consumer.6 1681 through 1681x, Gramm-Leach-Bliley Act, 15
• Providers of non-financial These and other legal frameworks also U.S.C. 6801 through 6809, and their implementing
consumer products and services that establish substantive consumer regulations.
8 TILA, as implemented by Regulation Z, protects
may have knowledge of or experience in protections with respect to certain types
credit card consumers from unauthorized credit
the use of consumer-permissioned of consumer information. Such card use. See TILA section 133; 15 U.S.C. 1643; 12
account data to provide products and 3 12
CFR 1026.12(b). EFTA, as implemented by
U.S.C. 5511(a). Regulation E, does the same with respect to EFTs.
services to consumers; 4 12 U.S.C. 5511(b)(5). See EFTA section 909(a); 15 U.S.C. 1693g(a); 12
• Participants in non-U.S. consumer 5 See, e.g., Regulation Z, 12 CFR 1026.5(b)(2) and CFR 1005.6(b)(2).
markets with knowledge of or 1026.7(b) (implementing the Truth in Lending Act 9 In March 2016 the Bureau entered into a consent

experience in the use of consumer- with respect to periodic statements for credit cards); order with a provider of a consumer-facing, online
permissioned account data to provide Regulation E, 12 CFR 1005.9(b) (implementing the payment network. Among other things, the Bureau
Electronic Fund Transfer Act with respect to found that the entity falsely represented to
products and services to consumers; and periodic statements for traditional bank accounts consumers that it employed reasonable and
• Any other interested parties. and other consumer asset accounts); Regulation DD, appropriate measures to protect data obtained from
12 CFR 1030.6(a)(3) (implementing the Truth in consumers from unauthorized access. (See http://
Part A: Regulatory Framework Saving Act with respect to periodic statements for files.consumerfinance.gov/f/201603_cfpb_consent-
Applicable to Consumer-Permissioned deposit accounts held at depository institutions); order-dwolla-inc.pdf.) Relying on section 5 of the
Access to Account Information Gramm-Leach Bliley Act, 15 U.S.C. 6803, and its Federal Trade Commission Act, which makes
implementing regulations. Further, on October 5, unlawful all ‘‘unfair or deceptive acts or practices
General Background 2016, the Bureau issued a final rule amending in or affecting commerce,’’ see 15 U.S.C. 45(a)(1),
Regulations E and Z for prepaid accounts. For the FTC has also taken action against companies
In the Dodd-Frank Act, Congress prepaid accounts, the final rule provides that as an that fail to take reasonable measures to protect the
sradovich on DSK3GMQ082PROD with NOTICES

instructed the Bureau to implement and alternative to providing the periodic statement, a security of consumer data. See, e.g., FTC Matter/
financial institution must, among other things, File Numbers 1023142–X120032 (Wyndham
2 For purposes of this RFI, consumer- make an electronic history of a consumer’s account Worldwide Corporation); 052–3148 (CardSystems
permissioned providers are third-party providers. transactions available to the consumer that covers Solutions, Inc.); 052–3136 (Superior Mortgage
Thus, consumer financial account providers do not at least 12 months preceding the date the consumer Corp.); 052–3096 (DSW Inc.); 052–3117 (Nations
themselves count as consumer-permissioned electronically accesses the account. The Title Agency, Inc.); 062–3057 (Guidance Software,
providers by virtue of using the account data that requirement will become effective on October 1, Inc.); 072–3046 (Life is good, Inc.); 072–3055 (TJX
they already hold to deliver additional services to 2017. Companies); and 052–3094 (Reed Elsevier, Inc.).
customers. 6 Fair Credit Reporting Act, 15 U.S.C. 1681g(a). 10 12 U.S.C. 5533.

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Document Created: 2018-02-14 08:29:05
Document Modified: 2018-02-14 08:29:05
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice and request for information.
Dates		Comments must be received on or before February 21, 2017.
Contact		For general inquiries, submission process questions or any additional information, please contact Monica Jackson, Office of the Executive Secretary, at 202-435-7275.
FR Citation		81 FR 83806