The Fate of the CFPB and Section 1033 Rules

Plans to reduce the size of the federal workforce have put the Consumer Financial Protection Bureau and its initiatives into a state of uncertainty. This includes one of its key achievements from last year, the personal financial data rule (Section 1033). The rule, empowered under Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, took effect on January 17, 2025, giving consumers more control over their financial data. Recent developments regarding the future of the agency overseeing the regulation raise questions about the enforcement and direction of the rule. 

Banks and companies across the financial data ecosystem can expect more clarity soon, as a temporary stay in pending litigation involving the enforcement of the rule is nearing its conclusion. Regardless of the CFPB's survival or whether the rules enumerated in Section 1033 are enforced, all signs point to a future when oversight of the access and use of personal financial data will be necessary. Businesses exposed to consumer financial data will need to plan accordingly.