Aarp applauds new financial consumer protections

Consumers should have control over their personal financial data and be free to choose a new bank or other financial service without restrictions. AARP applauds a recent move by the Consumer

Financial Protection Bureau (CFPB) to finalize a rule on October 22 that gives consumers the right to transfer their financial data to another provider for free. That means people can shop

around more easily for better interest rates on bank accounts, loans, payment apps and other financial products, CFPB explained in a notice of the final rule. AARP submitted comments in

support of the rule, which also establishes strong privacy protections, including a requirement that personal financial information can only be used for purposes requested by the consumer.

Third parties will not be allowed to secretly collect or use personal financial data for their own purposes, such as targeted advertising. Protecting the privacy of consumers—and making it

easier for them to find the best deals for their financial needs—is essential, David Certner, AARP legislative counsel and legislative policy director, told the CPFB in advocating for the

new rule. "AARP believes consumers should be in control of their personal financial data. Transactional bank account data are among an individual’s most sensitive personal information,”

Certner wrote in public comments. “Analyzing, sharing, and/or selling the data to third parties can put consumer privacy at risk, particularly when it is done without opt-in consent from

the consumer." LEARN HOW AARP IS FIGHTING FOR YOU​ AARP is your fierce defender on the issues that matter to people 50-plus. Read more about how we’re fighting for you every day in

Congress and across the country.​ The rule (which will be phased in between April 1, 2026 and April 1, 2030, depending on the size of the financial company) applies to all consumers, but has

particular significance for people 50-plus. Older Americans are major drivers of the world economy; a 2022 AARP study found that while people 50 and older comprise 24 percent of the world

population, they accounted for 34 percent of the global Gross Domestic Product. PROTECTING CONSUMERS FROM FRAUD The CPFB rule requires financial institutions, credit card issuers and other

providers of financial services to unlock a consumer's personal financial data (such as transaction information, account balances and information needed to transfer payments) and, when

requested, move it to another provider at no cost. That makes it easier and cheaper for consumers to switch banks, lenders or credit card companies and encourages competition among financial

services providers. The ease of transferring financial information also helps consumers who use "pay by bank"—a process that allows payments to vendors directly from a consumer’s

bank account. That market has long been uncompetitive, the CFPB said, and the new rule will help encourage competition. “Too many Americans are stuck in financial products with lousy rates

and service,” CFPB Director Rohit Chopra said in a statement when the rule was finalized. “Today’s action will give people more power to get better rates and service on bank accounts, credit

cards, and more.”