WASHINGTON, DC -21 FEB 2020- View of the headquarters building of the Consumer Financial Protection Bureau (CFPB) in Washington DC.
The CFPB will pursue a full rulemaking process to revise its Section 1033 personal financial data rights rule, abandoning earlier plans to issue an interim final rule, according to a new filing scheduled to be published in the Federal Register and reporting from Bloomberg Law.
In the filing, the CFPB confirmed it will move forward with a traditional notice-and-comment rulemaking, citing the complexity of the regulation and the need for public input. The shift follows sustained advocacy from America's Credit Unions, which warned that using an interim final rule for such a sweeping rewrite could create operational confusion, compliance challenges, and unintended consequences for credit unions and their members.
"America's Credit Unions appreciates the CFPB for heeding our calls to approach the Section 1033 rewrite through a formal rulemaking process, rather than an interim final rule," Scott Simpson, president/CEO of America's Credit Unions, said. "Public input is paramount to ensuring that regulations properly address industry issues while preventing unnecessary burdens. For a rule as complex as Section 1033, this is a win for credit unions and the 145 million Americans they serve."
The CFPB originally finalized the personal financial data rights rule in 2024, triggering widespread concern among credit unions and banks over compliance costs, data security risks and consumer privacy protections. The rule governs how financial institutions and third parties must share consumer financial data, a central issue in the rapidly evolving open banking ecosystem.
In December, America's Credit Unions wrote Acting CFPB Director Russell Vought, urging the bureau to abandon plans for an interim final rule and instead pursue a full regulatory process that allows stakeholders to weigh in before requirements take effect.
Thursday's Federal Register notice formally launched that approach, outlining the CFPB's intent to re-propose the rule and solicit public comment before finalizing changes.
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