The U.S. financial system totally feels like a black hole. 😵💫🕳️ Trying to understand even some of the most basic stuff can be like staring into the void. Personal finance shouldn't be rocket science and it looks like some positive changes are on the way! 💸
The government's planning a shiny new set of regulations to give consumers more control over their financial data. However, this new set of rights doesn't include everyone. 🤔
Here’s Five Fast Facts on upcoming personal financial data rights:
- 🏛️ Quite Frankly - The brains over at the Consumer Financial Protection Bureau (CFPB) are currently cooking up new rules known as Personal Financial Data Rights. It's a section of the Dodd-Frank Act, passed by Congress back in 2010. The act was a response to the financial industry's shenanigans that caused the financial crisis of 2007–2008. Basically, Dodd-Frank's goal is to make the nation's financial system safer for consumers and taxpayers.
- 📋 Promises, Promises - The pending "financial bill of rights" was promised when Dodd-Frank was originally rolled out, but it never happened. After years of collecting dust on the shelf, the Biden administration decided to bring it back to life.
- 💳 The Nitty Gritty - According to the proposed bill of rights, consumers will get "detailed access to their financial transactions, be able to link their accounts without going through a third party, have better data protection and control over data sharing, and more easily switch banking institutions, among other features." Officials also say the changes will make credit scores more transparent, which should make lending much less of a mystery for consumers.
- ☹️ On the Outside - Currently, the new proposal only covers debit, checking, savings, and credit card accounts. It doesn't apply to low-income Americans who don't use a bank or rely on government assistance.
- ⌚ ETA? - The CFPB is currently reviewing the new bill of rights and expects things to be finalized in 2024.
🔥Bottom line: Obviously, it would be a lot cooler if everyone was included in the new financial bill of rights, but at least it's a start. Activists are pushing the issue, so hopefully it will lead to more positive changes. Do you feel like you're lost in the personal finance sauce? You're not the only one. This article breaks down what confuses Americans the most.
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