Washington, D.C. – The Bank Policy Institute, Kentucky Bankers Association and Forcht Bank filed a motion this evening with the U.S. District Court for the Eastern District of Kentucky asking the court to clarify that banks will not have to comply with the existing Section 1033 rule while the CFPB works to substantially revise the rule.
“Unless the Court acts, banks will be forced to begin investing time and resources to build systems to comply with a regulation that will soon be replaced,” stated Paige Pidano Paridon, BPI Co-Head of Regulatory Affairs. “This is a straightforward and common-sense procedural matter, and we are asking the Court to act to avoid unnecessary cost and confusion.”
BPI, KBA, and Forcht Bank brought a challenge to the CFPB’s rule in October 2024 on the grounds that the rule exceeded the Bureau’s authority and put sensitive consumer financial data at risk. The CFPB petitioned the court to stay the litigation on July 29, stating that it intends to initiate a new rulemaking process promptly, beginning with an advance notice of proposed rulemaking. Judge Danny Reeves granted the stay and ordered the CFPB to provide the court with a status update on its progress every 45 days. Despite the planned rulemaking, the order did not address compliance expectations with respect to the existing rule.
The motion requests the court to stay the Rule’s compliance deadlines and enjoin the Rule’s enforcement until one year following the conclusion of this litigation. Without court action, some banks will be required to comply with the existing Section 1033 rule beginning in summer 2026.
To access a copy of the filing, please click here.
###
About Bank Policy Institute.
The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks and the major foreign banks doing business in the United States. The Institute produces academic research and analysis on regulatory and monetary policy topics, analyzes and comments on proposed regulations, and represents the financial services industry with respect to cybersecurity, fraud, and other information security issues.
Media Contacts
- Tara Payne, Bank Policy Institute, tara.payne@bpi.com
