ETA Submits Comments Regarding the CFPB’s Proposed Amendments to its Information-Sharing Rule

October 24, 2016

Dear Ms. Jackson:
The Electronic Transactions Association (“ETA”) submits this comment letter in response to the Bureau’s proposed amendments to its rules relating to disclosure of records and information, released August 24, 2016. ETA is the leading trade association for the payments industry, representing over 500 companies that offer electronic transaction processing and related products and services. ETA’s members include credit and debit card companies, prepaid account providers, mobile telephone service providers, and online small business lenders.

As explained in the comments below, ETA has significant concerns that the Bureau’s proposal extends far beyond its statutory authority. While our members support the Bureau’s mission, the Bureau does not have authority to share confidential supervisory information (“CSI”) about an entity with domestic and foreign governmental agencies that do not have jurisdiction over the entity in the first instance. Further, the proposal to transfer authority for the discretionary sharing of CSI from the Bureau’s General Counsel to the Associate Director for Supervision, Enforcement, and Fair Lending (the “Division”) creates an obvious and troubling conflict of interest. Assigning this important responsibility to the Division will undoubtedly create situations where the Division will be asked to decide on a CSI request at the same time the Division is litigating against the entity that is the subject of the CSI request. This would not only create a clear conflict of interest, but would allow the Division to use its authority as leverage against the entity that is subject to the CSI request.

Please follow this link to view ETA’s full comments to the CFPB.