The Bureau’s Latest Bogeyman: Screen-Scraping Restrictions

October 25, 2016 at 9:08 am Leave a comment

boogymanWhen the benign dictator of consumer protection says he’s “gravely concerned” about something, it’s best to pay attention to what’s on his mind. So, this morning I want to give you a heads up about screen-scraping.

There are individuals and companies that authorize third parties to  collect information from their online accounts so that it can easily be used for other purposes. For instance, it might be helpful for your financial planner to be able to plug-in data from your bank accounts.

But big banks are increasingly frustrated by these legal poachers. In his letter to shareholders in April, Jamie Dimon explained that “One item that I think warrants special attention is when our customers want to allow outside parties to have access to their bank accounts and their bank account information. Our customers have done this with payment companies, aggregators, financial planners and others. We want to be helpful, but we have a responsibility to each of our customers, and we are extremely concerned.”

Speaking at the at the Money 20/20 convention in Sin City yesterday, Director Richard Cordray was not to be outdone in the concern department. He said he was “gravely concerned by reports that some financial institutions are looking for ways to limit, or even shut off, access to financial data rather than exploring ways to make sure that such access, once granted, is safe and secure.”

That’s right. When it comes to screen scraping it’s the banks arguing for more privacy protection and the CFPB warning against placing too many burdens on consumers who want to share their information. Paging Alice in Wonderland.  Why do I think that credit unions and community banks could get caught in this crossfire of competing concerns?

 

 

Entry filed under: General, Regulatory, technology. Tags: .

How Internet “of things” Is Complicating Your cybersecurity Does Your Health Wellness Program Violate The ADA?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 446 other followers

Archives