What is Section 1033?

If you haven’t started looking into the CFPB’s Proposal for implementing Section 1033 of the Consumer Financial Protection Act (CFPA), you should. The purpose behind it is to give consumers the ability to easily “break up” with their financial institution and find another in a more seamless way. The CFPB believes this proposal will increase competition and ultimately improve customer service and lead to more favorable terms. CFPB Director Chopra has stated:

With the right consumer protections in place, a shift toward open and decentralized banking can supercharge competition, improve financial products and services, and discourage junk fees…we are proposing a rule to give consumers the power to walk away from bad service and choose the financial institutions that offer the best products and prices.

So, what does the Proposal entail? In a nutshell, you will be required to provide certain consumer data to authorized third parties electronically upon request and adhere to any standardized formats prescribed by the Rule. The Proposal also sets out obligations for and limitations on third parties that might access the information.

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Published
2024/02/07

Amy Kudlacek

Amy brings many years of banking and compliance experience to Banker’s Compliance Consulting. She has worked for both large and small financial institutions and spent time working in every area of a bank. She started out as a teller in college and eventually became a branch manager. Her love, however, was always compliance. Amy began her career with Banker’s Compliance Consulting in 2000. Her knowledge and experiences have allowed her to develop a well-rounded and practical approach to regulatory compliance. Amy is CRCM certified, has a Bachelors Degree in Business Administration and is a graduate of the ABA Compliance School. Amy & her husband have two children at home and stay busy following their activities. They spend a lot of time in the bleachers!

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