New rule gives consumers greater access and control of their personal financial data to make it easier to switch financial providers and foster competition
WASHINGTON – Under a new Personal Financial Data Rights Rule issued by the Consumer Financial Protection Bureau today, consumers will have an easier time seeking out better deals and services if they are unhappy with their bank or other financial institutions. Consumer Reports praised the CFPB’s rule, which gives consumers greater access to their financial data and new rights to prevent misuse of their personal information.
“Consumers who are charged too much or get poor service from their bank or other financial institution can find it difficult to move their money to a new provider,” said Delicia Hand, senior director of the digital marketplace. “The CFPB’s new rule requires financial institutions to make consumers’ data available in a secure, standardized format, empowering consumers to take control of their own data so they can use it to find better financial products and services at more affordable rates. By making it easier for consumers to leverage their own financial data, the new rule will encourage more competition among providers to improve services and drive down costs.”
Under the CFPB’s new rule, banks and other financial institutions must provide consumers access to data about their checking and prepaid accounts, credit cards, payment apps and digital wallets through secure interfaces at no charge. When consumers choose to share this data with third-party services, these third parties must obtain express consumer consent, use the data only for providing requested services, and allow consumers to revoke access. The rule prohibits third parties from using consumer financial data for unrelated purposes like targeted advertising or data sales.
“The CFPB’s rule establishes firm and clear data guardrails that will help protect consumers’ privacy,” said Hand. “Third party financial services must be transparent about how they use consumer data, obtain a consumer’s express consent before accessing it, and limit their use to providing the specific service requested by the consumer. As this framework matures, we look forward to working with the CFPB to explore opportunities to further strengthen consumer protections, particularly around downstream data usage and expanded coverage of additional financial services.”
Large financial institutions will be required to comply with the CFPB’s Personal Financial Data Rights rule by April 1, 2026. The smallest institutions covered by the rule will have until April 1, 2030 to comply. The rule exempts certain small banks and credit unions.
“This rule marks a significant milestone in giving consumers greater control over their financial lives,” added Hand. “As the financial services landscape continues to evolve, we hope to see future expansions of these important protections to additional products and services that impact consumers’ financial wellbeing, such as benefits programs.”
Michael McCauley, michael.mccauley@consumer.org