The House Financial Services Committee chairman, U.S. Rep. Patrick McHenry, has introduced a financial data privacy bill.
The North Carolina Republican introduced the Data Privacy Act of 2023 Friday (Feb. 24), saying it modernizes the relevant laws, gives consumers more control over their personal information and allows innovation, according to apress release.
“The financial services sector is already highly regulated when it comes to consumer data,” McHenry said in the release. “However, it’s critical that we bring our privacy guardrails into the 21st century to match the widespread adoption of financial technology.”
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The bill would require consumers be provided with information about how their data is being collected and used, that they be able to stop the collection of it and that they be able to delete it, according to McHenry’s summary of the bill.
It would also require covered entities to tell consumers why they are collecting the data, use it only for that purpose and allow consumers to opt out, the summary said.
The bill would also require that terms and conditions be transparent, provide a national standard around data handling, and modernize the Gramm-Leach-Bliley Act to ensure that these consumers apply to future innovations and technologies, per the summary.
“I’m proud to introduce this legislation to secure Americans’ private financial data, without strangling innovation,” McHenry said in the release.
