On August 13, the plaintiffs in a case challenging the CFPB’s Section 1033 rule filed a brief asking the court to stay the rule’s compliance deadlines and enjoin the rule until one year after the case concludes. The plaintiffs argued to the U.S. District Court for the Eastern District of Kentucky that it would be “profoundly unfair” to force banks to spend time and money complying with a data-sharing mandate that the Bureau itself now considers unlawful and intends to overhaul.
The plaintiffs — consisting of a national bank, a state bankers association, and a policy institute — argued the rule exceeds the CFPB’s statutory authority under Section 1033 of the Dodd-Frank Act. The CFPB changed leadership, which now agrees with the plaintiffs’ position and has moved to vacate it, yet affected parties must still prepare for compliance as the rule and its deadlines stayed in effect.
As previously covered by InfoBytes, the CFPB finalized its Personal Financial Data Rights rule under Section 1033 with compliance for data providers beginning as soon as April 1, 2026. In May, the CFPB indicated the rule should be set aside (covered here). An intervenor-defendant was granted a motion to intervene in July (and here), and the CFPB then announced it would “engage in an accelerated rulemaking process” to address purported defects in the rule (and here).
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