“The U.S. District Court’s decision to stay compliance with the Consumer Financial Protection Bureau’s Section 1033 rule affirms the serious concerns raised by ABA and other stakeholders regarding the rule’s legal foundation, scope and impact on consumer privacy and data security. The court’s decision provides a necessary pause for the Bureau to engage meaningfully with stakeholders and address the rule’s significant flaws while ensuring banks don’t have to invest time and resources to comply with an overbroad and legally flawed rule that is actively undergoing substantial revision. In the meantime, consumers will continue to reap benefits achieved without regulation thanks to industry standard-setting, innovation and partnerships that prioritize security, transparency and consumer control.
“We look forward to working with the CFPB to develop a revised rule that protects consumers, promotes innovation and ensures a level playing field across the financial ecosystem.”