CFPB data privacy rule faces legal challenge over liability, security concerns

Within a day of issuing a final rule implementing Sec. 1033 of the Dodd-Frank Act, the Consumer Financial Protection Bureau was hit with a lawsuit challenging the legality of the freshly finalized data privacy regulations. The suit claims the rule, which is meant to give consumers more control over their personal financial data, would open the door to increased risk of fraud due to a lack of requirements for third-party oversight.