U.S. Rep. Lynn Westmoreland (R-Ga) introduced the CFPB Data Collection Security Act on Tuesday, a legislation requiring more transparency and accountability from the Consumer Financial Protection Bureau (CFPB).
The Bureau was created by the Dodd-Frank bill to protect consumers from unethical and abusive practices by financial institutions. CFPB is supposed to ensure that consumers, when applying for any type of credit, have all the information needed to make a responsible decision and nothing is hidden in fine print.
But Westmoreland believes that now Americans need protection from the CFPB.
“Currently, the CFPB has access to your credit information and offers minimal transparency,” said Westmoreland in a statement. “It is highly concerning that they have access to collecting your data without your permission and have no time limit on keeping your information in their system. These CFPB employees can view your information, such as your social security and credit card numbers, but don’t have any security clearances. You also don’t have the option to request to be taken out of their system or for your information to be deleted from their system.”
Westmoreland’s bill would put time limits on information held by the CFPB (60 days) and provide an opt-out option for consumers. The legislation would also require a security clearance for some CFPB employees and the Bureau would have to provide one free year of credit monitoring to consumers.
“The CFPB Data Collection Security Act is a simple bill to address a huge problem in protecting your information from not only internal abuse, but from hackers as well,” said the Georgia Congressman. “It improves the ability to know what they have and the right to have it removed from their system. As support for the CFPB Data Collection Security Act grows, I also hope it raises awareness to question the credibility of the CFPB and an examination of the bureau’s necessity.”
Rep. Westmoreland represents Georgia’s third congressional district. Click here to view Westmoreland’s press release.