CFPB Calls Data-Safeguard Shortfalls UDAAP, Urging Enforcement

Using a circular to set a new standard, the CFPB today announced that failure properly to safeguard consumer data even if no loss or intrusion occurs violates consumer-protection requirements and should be addressed via state enforcement actions along with its own.  We will shortly provide clients with an in-depth analysis of the new circular, which sets specific standards in areas such as multi-factor authentication and software updates for data protection the agency believes necessary to govern fintech and other nonbank companies not subject to express data-protection standards such as those applicable to banking organizations.

Warren Joins GOP in at Least One Thing: Demand for Fed Transparency

Although Sen. Warren’s (D-MA) complaint today is different in terms of specifics, it is the same fundamental problem voiced yesterday by Senate Banking Republicans:  the Fed’s unwillingness to answer questions or supply information on disputed events.  Sen. Warren’s letter reiterates her longstanding complaint about Fed insider trading and what she views as the unsatisfactory response from the Board’s inspector-general.  The letter builds on a prior one from Senate Banking Chairman Brown (D-OH) and other Democrats complaining about Fed trading practices and new protocols.