CFPB Faces Lawsuit From US Bank Groups Over New Data Rule (1)

Two bank lobby groups are fighting a new rule that requires lenders to make customers’ data available to rivals, the latest industry challenge to tougher regulations passed during the Biden administration.

The Bank Policy Institute and the Kentucky Bankers Association have sued the Consumer Financial Protection Bureau in federal court in Kentucky, alleging it overstepped its legal authority with the rule.

The groups said Tuesday, just after the rule was passed, that it increases the likelihood of fraud and scams by failing to give proper oversight of third parties using the information. The regulation allows consumers to demand, download and ...