Credit union win: CFPB to start new rulemaking process for personal financial data rights rule

Reports in Bloomberg Law indicate the CFPB will go through the full rulemaking process on Section 1033. This decision follows America’s Credit Unions’ advocacy outreach urging the bureau to adopt this process.  

The bureau’s initial plan was to issue an interim final rule (IFR) to revise its personal financial data rights (PFDR) rule to implement Section 1033 of the Dodd-Frank Act. America’s Credit Unions wrote Acting CFPB Director Russell Vought in December, explaining that an IFR is not ideal due to the complexity involved and the bureau could alleviate potential complications by going through the regular rulemaking process instead. 

“America’s Credit Unions appreciates the CFPB for heeding our calls to approach the section 1033 rewrite through a formal rulemaking process, rather than an interim final rule. Public input is paramount to ensuring that regulations properly address industry issues while preventing unnecessary burdens," said America's Credit Unions President/CEO Scott Simpson. "For a rule as complex as section 1033, this is a win for credit unions and the 145 million Americans they serve to have their voices heard in the rulemaking process.”

The CFPB PFDR rule, as finalized in 2024, included numerous compliance and privacy concerns that America’s Credit Unions raised with policymakers. An advanced notice of proposed rulemaking to reconsider the PFDR rule was issued in October of last year and America's Credit Unions outlined various concerns in a comment letter to the bureau. 

Throughout the rulemaking process, America’s Credit Unions will continue to engage the bureau to ensure the expedited timeline to revise and repropose the rule impacts neither the quality of the rule nor its implementation.