WASHINGTON, D.C. – The Financial Technology Association (FTA) today filed a brief opposing the Bank Policy Institute, Kentucky Bankers Association, and Forcht Bank’s motion to lift a federal court stay and indefinitely delay implementation of the Consumer Financial Protection Bureau’s (CFPB) open banking rule.
FTA stressed that the plaintiffs are asking the Court to define the scope of the CFPB’s authority in advance, in hopes of constraining the agency’s forthcoming rulemaking. Such premature judicial intervention would undermine the notice-and-comment process, short-circuit stakeholder input, and interfere with the CFPB’s ability to arrive at a reasoned decision consistent with the statute.
“They are essentially asking the Court to pre-empt the CFPB’s rulemaking and hamstring the agency before it even hears from stakeholders,” said Penny Lee, President and CEO of the Financial Technology Association. “That’s not how our regulatory process works, and it’s not how consumers’ rights should be decided. Efforts to delay implementation and seek to charge consumers for their own data are unlawful, anti-competitive, and contrary to the public interest.”
FTA emphasized that Section 1033 of the Dodd-Frank Act grants consumers a statutory right to access and share their own financial information, and that the CFPB’s rule properly prohibits banks from imposing fees for such access. Plaintiffs’ effort to indefinitely delay compliance would undermine consumer rights, disrupt market competition, and interfere with the CFPB’s ongoing notice-and-comment rulemaking.
FTA noted in its filing that:
- The CFPB has already announced plans to issue a notice of proposed rulemaking related to the compliance deadlines, rendering the plaintiffs’ request unnecessary.
- Plaintiffs are effectively asking the Court to define the scope of the CFPB’s authority in advance — an effort to hamstring the agency’s forthcoming rulemaking and short-circuit stakeholder input.
- The CFPB’s open banking rule allows consumers to connect their bank accounts to fintech apps that offer lower-cost credit, budgeting tools, and payment solutions.
FTA urged the Court to maintain the current stay of litigation, respect the regulatory process, and deny plaintiffs’ motion for premature relief. FTA supports the CFPB’s accelerated rulemaking process and stands ready to engage constructively to improve the rule.
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The Financial Technology Association (FTA) is a network of fintech leaders shaping the future of finance. We champion the power of technology-driven financial services to catalyze innovation and advocate for modernized policies and regulations that reflect the digital transformation.