Javascript is not enabled.

Javascript must be enabled to use this site. Please enable Javascript in your browser and try again.

Skip to content
Content starts here
CLOSE ×
Search
Leaving AARP.org Website

You are now leaving AARP.org and going to a website that is not operated by AARP. A different privacy policy and terms of service will apply.

AARP Applauds New Financial Protections for Consumers

A federal rule establishes privacy guardrails and puts restrictions on financial institutions


spinner image a bar chart with a hand and arm wrapping around some of the bars
Chris Gash

Consumers should have control over their personal financial data and be free to choose a new bank or other financial service without restrictions.

AARP applauds a recent move by the Consumer Financial Protection Bureau (CFPB) to finalize a rule on October 22 that gives consumers the right to transfer their financial data to another provider for free. That means people can shop around more easily for better interest rates on bank accounts, loans, payment apps and other financial products, CFPB explained in a notice of the final rule.

AARP submitted comments in support of the rule, which also establishes strong privacy protections, including a requirement that personal financial information can only be used for purposes requested by the consumer. Third parties will not be allowed to secretly collect or use personal financial data for their own purposes, such as targeted advertising.

Protecting the privacy of consumers—and making it easier for them to find the best deals for their financial needs—is essential, David Certner, AARP legislative counsel and legislative policy director, told the CPFB in advocating for the new rule.

"AARP believes consumers should be in control of their personal financial data. Transactional bank account data are among an individual’s most sensitive personal information,” Certner wrote in public comments. “Analyzing, sharing, and/or selling the data to third parties can put consumer privacy at risk, particularly when it is done without opt-in consent from the consumer."

Learn How AARP is Fighting for You

AARP is your fierce defender on the issues that matter to people 50-plus. Read more about how we’re fighting for you every day in Congress and across the country.​

The rule (which will be phased in between April 1, 2026 and April 1, 2030, depending on the size of the financial company) applies to all consumers, but has particular significance for people 50-plus. Older Americans are major drivers of the world economy; a 2022 AARP study found that while people 50 and older comprise 24 percent of the world population, they accounted for 34 percent of the global Gross Domestic Product.

Protecting consumers from fraud

The CPFB rule requires financial institutions, credit card issuers and other providers of financial services to unlock a consumer's personal financial data (such as transaction information, account balances and information needed to transfer payments) and, when requested, move it to another provider at no cost. That makes it easier and cheaper for consumers to switch banks, lenders or credit card companies and encourages competition among financial services providers.

The ease of transferring financial information also helps consumers who use "pay by bank"—a process that allows payments to vendors directly from a consumer’s bank account. That market has long been uncompetitive, the CFPB said, and the new rule will help encourage competition.

“Too many Americans are stuck in financial products with lousy rates and service,” CFPB Director Rohit Chopra said in a statement when the rule was finalized. “Today’s action will give people more power to get better rates and service on bank accounts, credit cards, and more.”

The rule also addresses another worry for 50-plus consumers: financial privacy and security. Third parties won't be able to collect information for marketing or other purposes.

The heightened consumer control discourages what is known as "screen scraping," a risky practice in which consumers reveal their account passwords to third parties.

"Once a data broker has access to someone’s personal financial data, it can be exploited for any number of reasons," Certner wrote in his comments to CFPB. He noted that AARP's Fraud Watch Network has collected numerous accounts of criminal enterprises using data brokers to buy lists of potential fraud victims.

Once the victims pay, criminals can send the names back to the data brokers, who then further tailor their target lists, Certner warned. "This has helped lead to the massive proliferation of scams and fraud, often targeting older adults, that has dramatically increased in the past few years," Certner said.

Join Our Fight to Protect Your Finances

Sign up to become an AARP activist on financial security and other issues important to people 50 and older.​

Nearly two-thirds of adults 50-plus bank online or using a mobile application at least weekly, according to a June AARP study. That study also found that two in five of all respondents have switched financial institutions at some point, often looking for lower fees, better perks and heightened protections against fraud.

Consumer worries about financial data security are widespread. A 2023 AARP study found that more than half of consumers 50-plus are concerned that financial technology companies were not providing enough security or were misusing their personal financial information.

Limiting the availability of personal financial data is an important step in protecting consumers," Certner said.

Read our full comments and visit AARP's Fraud Watch Network for up-to-date information on how to protect yourself from scams.

Unlock Access to AARP Members Edition

Join AARP to Continue

Already a Member?