According to two sources briefed on the topic, the US Consumer Financial Protection Bureau will question internet companies including Facebook, Amazon, and Google this week about how they manage consumer financial data as part of a broader push to improve consumer safeguards and financial sector competition.
According to the persons, the Consumer Financial Protection Bureau (CFPB) wants to send the corporations a 55-page request for information about how they gather, use, and promote consumer financial data.
"The regulator's questions will pay special attention to what it is firms are collecting, how they're collecting it, and what they're using it for," one insider said.
The Consumer Financial Protection Bureau declined to comment. The CFPB does not oversee Facebook, Amazon, or Alphabet Google, thus they did not immediately reply to a request for comment.
The expected request for information comes after Rohit Chopra was confirmed as director of the Consumer Financial Protection Bureau by the Senate last month. He earned a reputation as a consumer advocate who was frequently tough on big tech as a former Democratic commissioner at the Federal Trade Commission.
Increasing competition in the consumer finance industry by compelling financial corporations to offer consumers more control over their financial data — a notion known as "open banking." — is one of the Democrats' main legislative concerns. find out more
For example, requiring banks and other financial institutions to allow customers to download and share data about their account balances, payments, transactions, and investments with a third party could make it easier for customers to transfer providers.
In the coming months, Chopra is anticipated to press forward with an open-banking rule that was first suggested by the agency during the previous Trump administration.
According to the source, the corporations' confidential comments may help determine open banking and other future rulemakings.
"This move by the agency is a clear signal that this broader array of companies, which are not covered by the CFPB, are seen to undertake activities and collect consumer financial data that may be subject to future, open banking regulation," according to the statement.