ABA Urges Congress to Protect Privileged Information Given to CFPB
The American Bar Association (ABA) has sent letters to the United States Congress advocating for passage of legislation requiring the Consumer Financial Protection Bureau (CFPB) to protect privileged information that the agency receives from banks. The letter from the ABA to Senate and House leaders raises the same concerns expressed by banks that now fall under the new bureau's regulatory regime. The ABA's letter argues that the CFPB should be governed by the same rules regarding protections of privileged information that other federal banking regulators must follow.
There are pending bills in both the Senate and House (H.R. 4014 and S. 2099) that, if passed, will categorize the CFPB as a federal banking regulator, thus subjecting them to the same rules as other banking regulating agencies regarding privileged information received from banks. The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, did not include such a provision, leading to bank concerns that sensitive information will be improperly provided to the public or competitors if produced to the CFPB. Under current law, federal banking agencies may share with other similar agencies privileged information received from banks without a waiving the confidentiality of the information. Sharing privileged information with another third party--which may include the CFPB-- waives the confidential nature of the information.
