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HL Chronicle of Data Protection Privacy & Information Security News & Trends

Tag Archives: CFPB

Posted in Consumer Privacy, Cybersecurity & Data Breaches, Financial Privacy

CFPB Dives Into Data Security Enforcement

On March 2, 2016, the Consumer Financial Protection Bureau announced its first data security enforcement action in the form of a Consent Order with online payment platform Dwolla, Inc. The 5 year Consent Order is based on CFPB allegations that Dwolla engaged in deceptive acts and practices by misrepresenting to consumers that it had “reasonable and appropriate data security practices.” Dwolla neither admitted nor denied that it engaged in data security misrepresentations. The CFPB fined Dwolla $100,000, enjoined it from making further misrepresentations, and is requiring that it develop a written, comprehensive data security program, designate a person responsible for the program, provide employee training, conduct risk assessments, and undergo independent third party audits annually, among other things. The CFPB also places primary responsibility for compliance with the Consent Order on Dwolla’s board of directors.

Posted in Financial Privacy

CFPB Finalizes Rule to Ease GLBA Privacy Notice Requirements

The Consumer Financial Protection Bureau (CFPB) has finalized a proposed rule that will eliminate the need for certain financial institutions to mail annual privacy notices to their customers, so long as the institutions publish their privacy notices online and engage only in limited sharing of customer information.

Posted in Financial Privacy

CFPB Announces Inquiry into Mobile Financial Services and Issues Consumer Tips on Use of Mobile Devices

The Consumer Financial Protection Bureau is exploring how consumers—particularly members of economically vulnerable and underserved communities—are using mobile technology to access financial services and manage personal finances. In a Request for Information announced earlier this week, the CFPB notes that a large percentage of unbanked and underbanked consumers, many of whom are low-income, have access to mobile phones, a significant number of which are smartphones, and that accessing financial products, services, and financial management tools via mobile devices has the potential to empower consumers to take more control over their financial lives, to increase savings and reduce debt.

Posted in Financial Privacy

CFPB Proposes to Alleviate GLBA Privacy Notice Requirements

The Consumer Financial Protection Bureau has issued a proposed rule that would eliminate the requirement for banks and other financial institutions subject to CFPB jurisdiction to deliver an annual privacy notice to their customers, provided the institutions take certain privacy-protective measures. The CFPB proposal demonstrates that the agency is following up on its 2011 streamlining initiative, in which it solicited comment on possible alternatives to delivering the annual privacy notice, and recognizes at least to some extent the online world that most consumers now embrace

Posted in Social Media

Financial Regulators Finalize Social Media Guidance and Address Industry Questions

The Federal Financial Institutions Examination Council (FFIEC) has released final supervisory guidance on the use of social media by financial institutions. We last reported on the guidance when it was published in draft form in January 2013. The final guidance is substantially similar to the proposal (and we encourage you to read our prior post for more details on the elements of the guidance), but the FFIEC made certain revisions in light of the 81 public comments it received on the proposal.