WASHINGTON— The Financial Technology Association (FTA) has filed a motion for summary judgment in federal court, urging the court to uphold a final rule on consumer financial data rights—a regulation the CFPB declined to enforce under the Trump administration.
In its filing, the FTA argued that consumers cannot effectively share or control their financial data unless they are granted straightforward and reliable access to it from their banks.
“Open banking supports consumer choice, putting easy-to-use and low-cost financial tools in the hands of more Americans,” said Penny Lee, president and CEO of the Financial Technology Association. “This rule is grounded in longstanding legal authority and reflects a bipartisan commitment to modernizing how Americans manage their financial lives. We urge the Court to uphold the rule and reaffirm Americans’ rights to securely share their financial data.”
The FTA contended the CFPB issued the open banking rule under clear statutory authority granted by Congress, which defines a “consumer” as “an individual or an agent, trustee, or representative acting on behalf of an individual.”
“The rule aligns with Congressional intent to permit consumers to exert greater control over their financial data and for financial institutions to share this information ‘upon request,’” the FTA said.
The FTA also said the rule also meets the legal standards required by the Administrative Procedure Act (APA).
“It is neither arbitrary nor capricious and was reasonably explained by the agency,” the FTA said. “The open banking rule was initiated during the first Trump Administration and has long enjoyed bipartisan support and been viewed as a driver of innovation and competition in American financial services. Efforts to improve the rule should be pursued through the appropriate rulemaking process, not litigation.”