Small Businesses Wary of Liability in CFPB Open Banking Proposal

Credit unions, community banks, and other small businesses are worried that increased sharing of consumer data under a pending CFPB open banking rule would lead to increased liability for data providers when information is incorrect or accessed fradulently.

Participants in a small business review of a Consumer Financial Protection Bureau outline of a proposal to ease the sharing of consumers’ financial data cited risks that they’ll face liability for incorrect data shared throughout the financial ecosystem, according to a report the agency unveiled Monday. They are also concerned about potential liability for data breaches at third party firms that receive ...