In the Press
April 26, 2023

CFPB's 'Disturbing' Data Breach Sparks Ire, Credibility Doubts (Law360)

A CFPB data breach involving sensitive information on dozens of financial institutions and potentially hundreds of thousands of their customers may damage the agency's credibility on data security and chill companies' responses to its information requests, financial services attorneys say. The CFPB, for its part, has said that companies need not fear for the safety of their data in its hands. When it comes to interacting with the CFPB, the calculus about how much information to share may not meaningfully change for many financial institutions, according to Allison Schoenthal, co-chair of the Banking and Consumer Financial Services practices. "Our financial institution clients are extremely sensitive about any information that leaves their institution," Schoenthal said to Law360. "Data security and protection of customer information are top of mind for everyone." Schoenthal added that she has also found the CFPB to be fairly accommodating in that regard.