On June 2, 2025, the ABA Banking Journal reported that the CFPB asked a federal court to vacate its rule on financial data sharing, citing the rule’s “numerous legal infirmities.” The CFPB issued the final rule on October 22, 2024, that requires financial institutions, credit card issuers, and other financial providers to unlock an individual’s personal financial data and transfer it to another provider at the consumer’s request for free.
According to the ABA Banking Journal article, the CFPB and the plaintiffs made separate court filings requesting the U.S. District Court for Eastern Kentucky to vacate the rule. The CFPB argued that the rule unlawfully prohibited data providers from recovering any fees to offset the burden of compliance. The bureau also said that the rule aims to regulate open banking by requiring the sharing of data with “authorized third parties,” whereas Section 1033 is limited to ensuring that consumers can access their own data.
Read the ABA Banking Journal article here.
