In 2024, the CFPB issued a rule requiring financial institutions to share a consumer’s personal financial data with other providers at no cost, upon the consumer’s request. Members of the banking industry sued. After the change in administration, the CFPB informed the court it agreed with industry that the rule exceeded the agency’s authority, and that the rule should be vacated. The agency then asked the court to stay the litigation so it could undertake new rulemaking and revise the rule. While the court stayed the action, it also granted the Financial Technology Association, a trade group of new financial technology businesses, leave to intervene to defend the rule.
The plaintiffs then moved for a section 705 stay of the rule given upcoming compliance deadlines. Today, the court granted that motion, finding the plaintiffs likely to succeed on the merits of their claims that the rule exceeded the agency’s authority, and that it was arbitrary and capricious.
