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NAFCU voices concern about CFPB’s data collection authority

NAFCU_logo_edited-150x150Dan Berger, the executive vice president of government affairs at the National Association of Federal Credit Unions, expressed on Monday concerns about the CFPB’s data collection authority in a letter to a House subcommittee.

In a letter to House Subcommittee on Financial Institutions and Consumer Credit Chairman Shelley Moore Capito and Ranking Member Gregory Meeks, Berger reiterated the trade association’s previously noted concerns regarding the lack of security in the CFPB’s data collection system.

“Specifically, NAFCU has expressed concern about the response intake fields on the CFPB’s consumer complaint form and has asked that the Bureau outline implementing procedures to ensure that employees handle this information with care,” Berger said in the letter. “In an effort to minimize the potential for problems, NAFCU believes the CFPB should start by simply minimizing the breadth and scope of the personal information requested.”

Berger also pointed to concerns regarding the Treasury’s creation of a records system for the consumer watchdog agency, adding that the CFPB has “not done enough to wane [the group’s] concerns.”

NAFCU urged subcommittee members to consider the need for better data security measures for agencies that handle sensitive financial data.

“The CFPB’s inspector general recently found ‘weaknesses’ in the agency’s security program and the GAO has similarly expressed concerns about data security,” Berger said. “In short, unfortunately the federal government, much like several private sector industries, has been responsible for the unauthorized release of sensitive personal information in the past. Certainly, nobody intends to be a victim of data breach or theft; nonetheless the government, including the CFPB, needs to do everything possible to ensure that great care is taken in handling this information.”

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