November 25, 2024
US banking industry files legal challenge against new ‘open banking’ rules #IndustryFinance

US banking industry files legal challenge against new ‘open banking’ rules #IndustryFinance

CashNews.co

WASHINGTON (Reuters) – A pair of U.S. banking trade groups filed a lawsuit on Tuesday challenging new rules issued by the Consumer Financial Protection Bureau that would make it easier for consumers to switch between financial services providers.

The Bank Policy Institute and Kentucky Bankers Association contended in the suit, filed in U.S. District Court in Lexington, Kentucky, that the agency overstepped its authority and the so-called “open banking” rule would jeopardize consumers’ financial data.

(Reporting by Pete Schroeder; Editing by Chris Reese)