A federal court has issued an order preventing the CFPB from enforcing its rule on financial data sharing while the bureau reassesses the regulation.

The rule stems from Section 1033 of the Dodd-Frank Act, which requires banks and other financial institutions to make a consumer’s financial information available to them or a third party at the consumer’s direction. The rule was implemented under the CFPB’s prior leadership.

In court filings in May, both the plaintiffs and CFPB asked the U.S. District Court for Eastern Kentucky to vacate the rule. The CFPB has since issued an advance notice of proposed rulemaking seeking public input as it drafts a replacement for the rule.

Author: sdbrownlow

Student of Design