Court halts 1033 rule compliance deadline

The U.S. District Court for the Eastern District of Kentucky stayed the compliance deadline for the Consumer Financial Protection Bureau’s Section 1033 rule.

Background: Section 1033 of the Dodd-Frank Act requires covered financial institutions to make available to consumers certain data relating to consumers’ transactions and accounts upon request.

Details on the Court Stay: The CFPB this summer requested a stay in a lawsuit challenging the 1033 rule, saying it has decided to initiate a new rulemaking. The new ruling stays the compliance deadline until the CFPB completes a new rulemaking.

Recent ICBA Comment Letter: In response to the CFPB’s proposed rule on implementing 1033 requirements, ICBA recently called on the bureau to exempt all community banks with assets $10 billion and under.

Potential Impact of the Rule: ICBA has long expressed concerns about the impact of the rule on consumer data security and privacy. ICBA and other groups recently issued a statement correcting the record on the Section 1033 rulemaking following misleading claims from fintech and retail organizations.

Ongoing Advocacy: Senior ICBA staff recently met with CFPB leaders to discuss Section 1033 rulemaking. Addressing the 1033 rule is a key priority of ICBA’s “Repair, Reform, and Thrive” plan for the 119th Congress and Trump administration.