CFPB Seeks Comments on Digital Payment Data Manipulation
Comments are due April 11 on the Consumer Financial Protection Bureau’s inquiry into how consumer financial services companies collect, share and abuse user data gathered from digital payment services, the agency said Friday.
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The CFPB issued a request for information to “better understand how companies that offer or provide consumer financial products or services collect, use, share, and protect consumers’ personal financial data, including data harvested from consumer payments.”
CFPB research shows payment platforms, like those offered by Big Tech companies, “collect and use data in excess of what is needed to initiate and complete a transaction.” Payment data coupled with other sensitive information can be used to “facilitate personalized pricing, where a price is based on factors specific to an individual consumer,” the agency said.
Regulations under the Gramm-Leach-Bliley Act and the Fair Credit Reporting Act might not “fully address the challenges posed by modern data surveillance,” the agency said. The RFI seeks comments on the effectiveness of the existing regulatory framework.