U.S. Amasses Data On 10 Million Consumers As Banks Object
Wednesday, April 17, 2013 - 10:11 AM
The new U.S. consumer finance watchdog is gearing up to monitor how millions of Americans use credit cards, take out mortgages and overdraw their checking accounts. Their bankers aren’t happy about it.
The Consumer Financial Protection Bureau is demanding records from the banks and is buying anonymous information about at least 10 million consumers from companies including Experian Plc. (EXPN)
While the goal is to sharpen enforcement and rule-making, banking executives have questioned why the bureau is collecting so much without being more specific about the benefits.
.... Director Richard Cordray has said that the consumer bureau needs raw material to make “data-driven” decisions based on how financial products and services are used or abused. Research will improve regulation as well as the marketplace, he said.
... Dodd-Frank specifically bars the agency from collecting data “for purposes of gathering or analyzing the personally identifiable financial information of consumers.”