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The Consumer Financial Protection Bureau (CFPB) has officially recognized Financial Data Exchange (FDX) as an authorized standard-setting body, empowering it to establish standards that help companies comply with the bureau’s regulations.
According to a news release on Wednesday, Jan. 8, this recognition is part of the CFPB’s Personal Financial Data Rights rule, initially introduced in October. Under this rule, financial institutions, credit card issuers, and other financial providers must enable consumers to access their personal financial data and transfer it to another provider upon request, free of charge.
“Today’s order recognizes FDX as an industry standard-setting body for five years,” the CFPB stated in the release. The bureau also noted that it is reviewing additional applications for similar recognition.
FDX operates across the U.S. and Canada and includes over 200 member organizations. Its members comprise a broad spectrum of participants in the open banking ecosystem, including depository and non-depository commercial entities, data providers and recipients, data aggregators, service providers, trade and industry organizations, and consumer advocacy groups.
CFPB’s Broader Enforcement Actions
In a related development on the same day, the CFPB filed a lawsuit against Experian, accusing the consumer reporting agency of failing to properly investigate consumer disputes and of including inaccurate information in credit reports.
The bureau alleged that Experian’s actions violated the Fair Credit Reporting Act and the Consumer Financial Protection Act.
“When consumers disputed errors on their credit reports, Experian conducted sham investigations rather than properly reviewing the disputes as required by federal law,” said CFPB Director Rohit Chopra in the release.
Experian responded to the lawsuit with an emailed statement, describing the claims as baseless and expressing its intent to contest them in court.
“We take our commitment to meeting the needs of consumers and adhering to all our regulatory obligations seriously,” the company said. “We thoroughly investigate every consumer dispute and go above and beyond the legal requirements. We strongly refute both the substance and tone of the CFPB’s allegations.”
The CFPB’s dual actions underscore its commitment to advancing open banking frameworks while maintaining stringent oversight of consumer protection standards.
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