Consumers in the US will be given the right to instruct their banks to transfer their financial data to other institutions, under new open banking rules devised by the Consumer Financial Protection Bureau.
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The CFPB says the ruling will help consumers to more easily switch to providers with superior rates and services, lowering prices on loans and improving customer service across payments, credit, and banking markets.
“Too many Americans are stuck in financial products with lousy rates and service,” says CFPB Director Rohit Chopra. “Today’s action will give people more power to get better rates and service on bank accounts, credit cards, and more.”
Under the provisions, consumers will be able to access and share data associated with bank accounts, credit cards, mobile wallets, payment apps, and other financial products. Consumers will be able to access, or authorise a third party to access, data such as transaction information, account balance information, information needed to initiate payments, upcoming bill information, and basic account verification information. Financial providers must make this information available without charging fees.
Third parties will only be able collect, use, or retain data to deliver the product the consumer requested. They cannot secretly use that data for their own unrelated business…
