Washington, D.C. – The U.S. District Court for the Eastern District of Kentucky approved a request this morning to stay the compliance deadline for the CFPB’s Section 1033 rule. The Bank Policy Institute, Kentucky Bankers Association and Forcht Bank issued a joint statement:
“We are grateful for the court’s decision today to stay the existing rule’s compliance deadline until the CFPB completes its new rulemaking. This is a common-sense procedural step that doesn’t interfere with the rulemaking process but ensures banks won’t be forced to invest time and resources preparing for a rule that is currently being rewritten.”
Additional Background:
BPI, KBA and Forcht Bank challenged the CFPB’s Section 1033 rule in October 2024, arguing that it put sensitive consumer financial data at risk and exceeded the CFPB’s legal authority. On July 29, the court granted a motion to stay the litigation while the CFPB embarked on a new rulemaking. However, the order failed to address the original rule’s compliance deadline, which obligated some financial institutions to comply with the existing rule as early as summer 2026.
The co-plaintiffs filed a motion with the court on August 13, 2025, requesting that the court stay the compliance deadline. Today’s ruling stays the compliance deadline until the CFPB completes its new rulemaking.
To access a copy of the court order, please click here.
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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.
About the Kentucky Bankers Association
The Kentucky Bankers Association is a nonprofit trade association that has been providing legislative, legal, compliance and educational services to its member institutions since 1891. KBA’s directors and staff work together with its members to make the financial services industry a more effective and successful place to work. The strength of the KBA is bankers unifying as an industry to speak as one voice. The purpose of the Kentucky Bankers Association is to provide effective advocacy for the financial services industry both in Kentucky and on a national level; to serve as a reliable and responsive source of information and education about areas of interest to the industry; and to provide a catalyst and forum for collective industry action.
Media Contacts
Austin Anton
Bank Policy Institute
austin.anton@bpi.com
Matt Simpson
Kentucky Bankers Association
msimpson@kybanks.com
