On October 29, 2025, the ABA Banking Journal reported that a federal court issued an order preventing the CFPB from enforcing its rule on financial data sharing while the bureau reassesses the regulation. The CFPB finalized the rule in October 2025 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.
The Kentucky Bankers Association, along with the Bank Policy Institute and other plaintiffs, challenged the rule, claiming it put consumers’ privacy and account security at risk. In his order, District Judge Danny Reeves enjoined the CFPB from enforcing the 2024 rule until it has completed its reconsideration of the regulation. In a statement, Judge Reeves said the following:
“Ultimately, the CFPB is currently engaged in rulemaking to reconsider the rule considering the plaintiffs’ concerns about its lawfulness. Nevertheless, the plaintiffs and their members are being compelled to incur expenses that would be unrecoverable and unnecessary if the new rule substantially revises the existing requirements or if the current rule is vacated.”
Read the ABA Banking Journal report here.