CFPB to Reconsider Open Banking Rule Under Section 1033

The U.S. Consumer Financial Protection Bureau (CFPB) announced plans to issue a proposed rule that will revisit the final open‑banking rule adopted in November 2024 and effective Jan. 17 2025. The rule, issued under section 1033 of the Consumer Protection Act, requires banks to provide consumers with transaction data and other product information on request and directs the agency to set standards for data availability.

In its August 22 2025 advance notice, the CFPB said the upcoming proposal will seek comment on who may act as a “representative” for consumers, how fees for responding to requests should be handled, and the data‑security and privacy safeguards needed for compliance. The rule has faced legal challenges, notably from the Bank Policy Institute and the Kentucky Bankers Association, who argue that it exposes consumer data to commercial third parties. FinTech firms, consumer‑advocacy groups and open‑banking supporters contend the rule promotes competition and consumer rights.