The Defense Credit Union Council (DCUC), representing nearly 200 credit unions serving over 40 million members, including military personnel and veterans, sent a letter to the Consumer Financial Protection Bureau (CFPB) opposing the finalized implementation of Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

While the 1033 rule is intended to improve consumer access to financial data, DCUC warns of the unintended consequences it could have on credit unions—especially those serving military and veteran families.

Jason Stverak, DCUC Chief Advocacy Officer, expressed DCUC’s willingness to collaborate with the CFPB to explore alternative approaches that balance consumer data portability with the security and integrity of financial services for military families. “Our commitment is to protect the financial well-being of the communities we serve, and we believe the CFPB must carefully consider the real-world impact this rule could have,” said Stverak.

“DCUC's longstanding vigilance on financial privacy is once again on display. We are always concerned when personal financial information is exchanged,” said Anthony Hernandez, DCUC President/CEO. “The last thing our military needs to worry about is a data compromise in addition to a flurry of sales ads when they are downrange or in a hazardous training environment. Plus, our member credit unions do not need another unfunded mandate in addition to holding the bag when financial harm is caused when third-party vendors sacrifice safety for larger profits.”

DCUC urges the CFPB to reconsider the rule and engage with stakeholders to develop a solution that ensures consumer protection without jeopardizing the mission of credit unions.

Please see DCUC's official release attached for more information.