WASHINGTON, D.C. — Twelve state financial officers, including Kansas Treasurer Steven Johnson, submitted a public comment letter to the Consumer Financial Protection Bureau advocating for the preservation of consumer access to personal financial data rights as outlined under Section 1033 of the Dodd-Frank Act. The group emphasized the critical need for the Bureau to ensure that consumer-authorized third parties are recognized as “representatives” entitled to access financial information on behalf of consumers.

In the letter, the financial officers argued that Section 1033 mandates that consumers have the right to access their financial information “upon request” and that this definition inherently allows agents, trustees or representatives acting on behalf of individuals to request such data. They asserted that any interpretation that narrows this definition would undermine consumer choice, harm competition and entrench existing market players, which is contrary to the intent of Section 1033.

The coalition underscored the importance of maintaining the existing Personal Financial Data Rights Rule (PFDR Rule), claiming that it allows for fair competition and innovation within the financial services sector. With advancements in technology, they noted that consumer permissioned access to data has spurred developments in real-time payment systems, budgeting applications and alternative credit assessments. Narrowing the definition of “representative,” they argue, would reduce these innovation opportunities and could lead to market concentration where only a few large institutions hold power over consumer data access.

Furthermore, the letter highlighted concerns over potential practices by large financial institutions, suggesting that restricting data access could lead to discriminatory practices against fintechs that provide essential services to consumers. The financial officers warned that such restrictions could result in a scenario where dominant players could dictate access to consumer data, potentially undermining the constitutional rights of individuals.

The coalition urged the Bureau to affirm the plain language of Section 1033 and maintain regulatory continuity to help assure consumers that their access rights will not be compromised. They advocate for the Bureau to re-confirm that consumer authorization is the primary basis for defining “representative.”

In addition to Kansas Treasurer Steven Johnson, the letter was signed by officials from Kentucky, Mississippi, Nebraska, Nevada, North Dakota, Ohio, South Carolina, Utah and Wyoming.