CFPB states the Section 1033 Open Banking rule exceeds its authority

CFPB Requests that Kentucky Federal Court Vacate Personal Financial Data Rights Rule - Weiner Brodsky Kider PC

In litigation filed in the U.S. District Court for the Eastern District of Kentucky by a national bank and two banking associations challenging the CFPB’s Personal Financial Data Rights Rule, the Bureau recently reversed course in a summary judgment motion and concluded that the rule exceeds its statutory authority. The rule implements section 1033 of the Consumer Financial Protection Act, which directs the Bureau to promote consumers’ ability t…

CFPB states the Section 1033 Open Banking rule exceeds its authority

In its motion for a summary judgment in a lawsuit challenging the regulation, the CFPB stated it has concluded that the Section 1033 Rule (Rule) exceeds the agency’s statutory authority to create an open banking system by—among other things—requiring that consumer data be shared with third parties. The motion states that “the limited legislative history confirms what the statute’s text and structure make clear: the statute was intended simply to…