Financial monitoring under scrutiny at Senate hearing, as Chopra expresses concern
The Consumer Financial Protection Bureau (CFPB) is currently re-evaluating its approach to ensuring consumers' rights over their financial data and imposing safeguards against misuse and abuse by payment processors and financial institutions. This reconsideration comes in response to marketplace events, legal challenges, and concerns about consumer privacy, data security, and fee structures [1][2][3].
In July 2025, the CFPB filed a motion to stay implementation of its Section 1033 rule, initially finalized in October 2024. The rule mandated that financial institutions provide consumers the ability to access and transfer their financial data to authorized third parties at no cost, with privacy and security safeguards. The CFPB intends to engage stakeholders and the public to develop a revised, well-reasoned policy aligned with new leadership's preferences [1].
On August 22, 2025, the CFPB published an Advance Notice of Proposed Rulemaking (ANPR) requesting public comments on four substantive topics relevant to personal financial data rights. These topics include the definition of a third-party "representative," data providers' potential fees, data security standards, and the effectiveness of existing laws in protecting consumer privacy [2][4][5].
Rohit Chopra, Director of the CFPB, has expressed concerns about plans to monetize sensitive financial transaction data, highlighting the potential for financial surveillance and censorship in the U.S. [6]. He also emphasized the importance of safeguarding financial data, urging lawmakers to adopt measures to protect consumers' rights [7].
Meanwhile, JPMorgan Chase announced a new business unit, Chase Media Solutions, aimed at connecting brands with customers. However, Chopra has cited reports about JPMorgan Chase and PayPal's plans to use sensitive customer data for "surveillance-based targeting" [8]. PayPal did not respond to Reuters' request for comment [9].
The CFPB's ongoing review also includes the extension of compliance deadlines and a plan to finalize the rest of the open banking framework this fall [10]. The CFPB's consumer complaint function is expected to process over 2 million consumer complaints about banks or financial companies this year [11].
The CFPB's funding structure has been questioned due to its source from the Federal Reserve, not Congress. Sen. John Kennedy, R-LA, raised concerns about this structure, suggesting it violates the Constitution's separation-of-powers principle [12]. However, Chopra dismissed these claims, stating that everyone is complying with the statute [13].
The CFPB is actively monitoring market developments and eager to collaborate with lawmakers for more robust data protection [14]. Over 750 million credit cards are in circulation in the U.S., making credit a common lending method [15]. The CFPB is on track to save customers $20 billion in junk fees every year and has returned $20.7 billion to consumers [16]. The CFPB is also working to restrict the use of certain sensitive data by data brokers under the Fair Credit Reporting Act [17].
References: 1. CFPB Pauses Enforcement of Section 1033 Rule 2. CFPB Seeks Public Input on Open Banking and Data Rights 3. CFPB Extends Compliance Deadlines for Section 1033 Rule 4. CFPB's ANPR on Section 1033 Rule: What You Need to Know 5. CFPB's Section 1033 Rule: A Guide for Stakeholders 6. Chopra Warns Against Monetizing Sensitive Financial Data 7. Chopra Urges Lawmakers to Protect Financial Data 8. Chopra Criticizes JPMorgan Chase and PayPal's Data Practices 9. PayPal Declines to Comment on Data Practices 10. CFPB to Finalize Open Banking Framework This Fall 11. CFPB Expects to Process 2 Million Consumer Complaints This Year 12. Kennedy Questions CFPB's Funding Structure 13. Chopra Dismisses Funding Structure Concerns 14. CFPB Eager to Collaborate on Data Protection 15. Credit Cards Remain Prevalent in the U.S. 16. CFPB to Save Customers $20 Billion in Junk Fees 17. CFPB Proposes Rule to Restrict Data Brokers
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