WASHINGTON, DC (May 28, 2025) |
The Defense Credit Union Council (DCUC) applauds the recent indication by the Consumer Financial Protection Bureau (CFPB) of its intent to rescind the Section 1033 Personal Financial Data Rights rule, as reported on May 25, 2025.
Throughout the rulemaking process, DCUC has maintained that while the proposed rule sought to enhance consumer access to financial data and increase market competition, it also posed significant concerns for credit unions and their members.
These concerns centered around the rule's potential to inadvertently expose credit unions to heightened reputational and operational risks—particularly through third-party access and potential mishandling of shared data.
“The cooperative, trust-based nature of credit unions means that any compromise in data security directly impacts our members and the communities they serve,” said Anthony Hernandez, DCUC President/CEO. “We’ve consistently called on the need for consumer protection policies that don’t place credit union members at risk.”
DCUC also raised concerns regarding the disproportionate compliance burdens the rule could place on smaller credit unions. The mandate to facilitate third-party data sharing without sufficient safeguards could lead to increased fraud, data breaches, and administrative costs— without delivering clear benefits to members.
In light of these issues, DCUC supports the CFPB’s reconsideration of the rule and views the proposed rescission as a prudent and responsible step forward.
“We appreciate the CFPB’s willingness to listen to stakeholder feedback and reevaluate the potential impact of this rule,” adds Jason Stverak, DCUC Chief Advocacy Officer. “This decision moves us closer to a balanced regulatory environment that promotes innovation and protects consumers—while also preserving the integrity and operational viability of credit unions.”
DCUC looks forward to collaborating with stakeholders to achieve regulatory solutions that align with the best interests of credit union members and the broader financial ecosystem.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.