CFPB Skirts Law in Bid to Nix Open Banking, Fintechs Say (1)

The Consumer Financial Protection Bureau and banks seeking to overturn a Biden-era open banking rule are misreading a law empowering consumers to authorize access to their deposit and credit card data, a financial technology trade group said.

Traditional banks and the CFPB under acting Director Russell Vought say the agency’s rule finalized in October goes too far by allowing fintechs to act as an “agent, trustee, or representative” of consumers under the 2010 Dodd-Frank Act.

But that reading of the law is too narrow, the Financial Technology Association said in a brief filed Sunday in the US District Court for ...