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ARTICLE · 02 JUNE 2025

CFPB Seeks To Vacate Open Banking Rule

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On May 23, the CFPB notified a Kentucky federal court that it now considers its own 2023 open banking rule "unlawful" and plans to set the rule aside.

United StatesFinance and Banking
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
Maxwell Earp-Thomas
Maxwell Earp-Thomas
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On May 23, the CFPB notified a Kentucky federal court that it now considers its own 2023 open banking rule "unlawful" and plans to set the rule aside. The Bureau announced its intent to seek summary judgement against the rule, which was issued under Section 1033 of the Dodd-Frank Act to promote consumer-authorized data sharing with third parties.

The original rule (previously discussed here), issued in October 2023 under former Director Rohit Chopra, was designed to implement Section 1033's mandate by requiring financial institutions to provide consumers and authorized third parties with access to their transaction data in a secure and standardized format. The rule aimed to promote competition and consumer control over financial information by enabling the use of fintech apps and digital tools to manage personal finances.

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