USCC Commends Senate Republicans for Highlighting CFPB Data Security Threatposted June 12, 2015
June 12, 2015 – Washington, D.C. – The U.S. Consumer Coalition (USCC) released the following statement applauding the letter authored by U.S. Senators Tim Scott (R-SC) and Mike Crapo (R-ID), and signed by 22 of their Republican colleagues, pressing Consumer of Financial Protection Bureau (CFPB) Director Richard Cordray to address numerous deficiencies in their security procedures surrounding the mass collection of consumer data at the Bureau. As the letter points out, while these issues have been outlined by the Government Accountability Office (GAO), the CFPB has yet to address them.
“This letter, and the request made of the CFPB therein, is an important step in the struggle to reform the CFPB’s dangerous bulk data collection practices and shed light on the nature of their programs,” said USCC senior advisor Brian Wise.
“It is essential that the American consumer be made aware of the personal account information that the CFPB has been collecting without consumers’ knowledge or consent. As of March, 2014, the CFPB, in conjunction with other banking regulators, has tracked over 521 million credit card account summaries each month, amounting to the collection of at least seven billion credit card statements and accounting for over 80% of American credit card users. Not only is this massive data collection unnecessary, but the Dodd-Frank Act that created the CFPB explicitly prohibits personally identifiable consumer data from being collected. Given the recent IRS and OPM data breaches, it is only appropriate for lawmakers to question the ability of the CFPB to secure American consumers’ data.
“America’s consumers need attentive watchdogs like these Senators to protect their privacy and defend their rights from unaccountable and invasive federal agencies like the CFPB. We applaud these Senators for protecting consumers from the ‘consumer protector.'”
The U.S. Consumer Coalition (USCC) is a grassroots consumer advocacy organization working to protect and expand access to free-market goods and services.