Contact: Rebecca Mulholland, (703) 340-7215, rmulholland@allonadvocacy.com
Washington, DC, October 26, 2026 – The Financial Data and Technology Association (FDATA), a trade association representing more than 30 financial technology companies and consumer-permissioned data access platforms, has submitted comments to the Colorado Department of Law regarding its draft Automated Decision-Making Technology and Conversational Artificial Intelligence Service rules. If finalized, the rules would implement the recently amended Automated Decision-Making Technology (ADMT) in Consequential Decisions Act.
While supporting the ADMT Act’s goal to give Colorado consumers transparency into, and recourse from, consequential decisions that are materially influenced by automated technology, FDATA argues the rule remains overly broad and could be read to include activity that has no connection to a consequential decision.
FDATA also argues the draft rules are unclear about where the statutory exclusion for fraud prevention and identity verification ends, a challenge that could make it harder for providers to offer safeguards. To avoid this unintended consequence, FDATA urges the department to clarify the scope of the rules to align correction obligations with the way data moves through the financial system, and to avoid sweeping in the payment risk tools that protect consumers.
“FDATA supports the department’s efforts to give Colorado consumers transparency and recourse when automated technology materially influences decisions that determine their access to credit, housing, employment, and other important opportunities,” says FDATA Executive Director Steve Boms. “But the changes we request are necessary to preserve important consumer protections while keeping the final rules focused on consequential decisions rather than the consumer-permissioned data infrastructure, budgeting tools, and fraud controls consumers currently enjoy.”
Specifically, FDATA requests that the Department of Law alter the rule to:
- Ensure deployer responsibilities remain with the decision-maker
- Characterize everyday transaction categorization as organizing information, not ADMT
- Ensure material influence relies on the output’s actual role in the decision
- Ensure consumer-permissioned data is corrected at the source
- Reconcile retention obligations with data minimization
- Ensure the final rules align with federal Fair Credit Reporting Act and Equal Credit Reporting Act obligations
- Clearly exclude routine and low-stakes decisions from consequential decisions
- Eliminate coverage for payment risk scores
- Remove principal factor requirements for developers as well as deployers
- Ensure developer documentation is proportionate and protect confidential information
The full letter can be accessed here.
About FDATA
FDATA represents more than 30 financial technology companies and consumer-permissioned data access platforms across the United States and Canada. FDATA advocates for policies that empower consumers and small businesses to securely access and share their financial data in order to improve financial outcomes and drive innovation.
