H.R. 2885: Bank Loan Privacy Act

This bill, known as the Bank Loan Privacy Act, includes provisions that require the Bureau of Consumer Financial Protection (CFPB) to establish a specific rule before it can delete or modify certain loan data related to small businesses. Here’s a breakdown of its main components:

1. Title and Purpose

The Act is formally titled the Bank Loan Privacy Act and is focused on ensuring privacy interests in the management of small business loan data.

2. Rulemaking Requirement

The bill amends existing legislation related to the Equal Credit Opportunity Act. Notably, it changes how the CFPB can handle data associated with small business loans.

• The earlier language in the law that stated "The Bureau may," is replaced to clarify that the Bureau can only proceed under the stipulations outlined in the new rule.
• A critical requirement is introduced stating that the Bureau must issue an advanced notice and comment rule before making any deletions or modifications to the small business data.
• This rule must contain a clear description of the intended modifications and deletions of data.
• Additionally, the rule must explain how any changes would positively impact privacy interests.

Overall, the bill aims to enhance the oversight of how data regarding small business loans is managed, ensuring that these changes uphold the privacy rights of individuals and entities involved in such loans.

Relevant Companies

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