Consumer Financial Protection Bureau headquarters in Washington, D.C.
The CFPB has asked a federal court to pause litigation over its contested financial data access rule as it prepares to substantially revise the regulation under new leadership.
In a motion filed Tuesday in the U.S. District Court for the Eastern District of Kentucky, the CFPB said it intends to initiate a new rulemaking process “with a view to substantially revising [the rule] and providing a robust justification.” The Bureau stated that it plans to issue an advance notice of proposed rulemaking within three weeks to launch an “accelerated rulemaking process.”
The lawsuit was originally filed by Forcht Bank, the Kentucky Bankers Association and the Bank Policy Institute in November 2024, the same day the final rule was issued. The plaintiffs have asked the court to vacate the rule, arguing that it violated the Administrative Procedure Act.
The CFPB emphasized that revising the rule through agency action would “conserve judicial resources” and “obviate the need for the Court to rule on the current Rule under review.” The motion cited several legal precedents supporting the idea that courts often stay proceedings when agencies plan to reconsider challenged rules.
If the stay is granted, the CFPB said it would submit status reports every 90 days to keep the court informed of its progress.
The Financial Technology Association, which intervened in the case earlier this year, said it does not oppose the CFPB’s motion. However, the plaintiffs stated they “are opposed to extending today’s filing deadline and to placing the litigation in abeyance.” They said they intend to submit a formal opposition.
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