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Standard Summary
Comprehensive overview in 1-2 paragraphs
The Bank Loan Privacy Act would amend the Equal Credit Opportunity Act to require the Bureau of Consumer Financial Protection (CFPB) to issue a rule before deleting or modifying certain small business loan data. Specifically, before any deletions or modifications to data collected under ECOA section 704B(e)(4), the CFPB must publish an advance notice and seek public comment (a rulemaking process). The rule must describe the proposed modifications or deletions and explain how they would advance a privacy interest. The intent is to give affected parties an opportunity to participate in how small business loan data is retained, altered, or discarded, with a focus on protecting privacy.
Key Points
- 1Short title: The act is named the Bank Loan Privacy Act.
- 2Rulemaking requirement: The CFPB must, before deleting or modifying data under ECOA 704B(e)(4), engage in rulemaking with advance notice and public comment.
- 3Content of the rule: The rule must describe the specific data modifications or deletions the Bureau plans to make and explain how those changes would advance privacy interests.
- 4Scope of the provision: The requirement applies to data deleted or modified under the particular ECOA data-collection provision referenced (704B(e)(4)).
- 5Procedural emphasis: The process emphasizes transparency and public input (ANPR-like step and comment period) prior to any data changes.
Impact Areas
Primary affected group/area: Small business loan data subjects (small business borrowers and applicants) and entities handling small business loan data (lenders and financial institutions) who rely on or interact with ECOA data.Secondary affected group/area: Privacy advocates, consumer protection stakeholders, and regulatory agencies monitoring data practices in lending.Additional impacts: Potential delays or added compliance steps for data cleansing or deletion initiatives; greater transparency about how and why data is modified or removed; possible effects on data accuracy and regulatory reporting if data changes are stepped through a formal rulemaking process.
Generated by gpt-5-nano on Oct 31, 2025