Consumer Financial Protection Bureau headquarters in Washington, D.C.
The Defense Credit Union Council (DCUC) welcomed the CFPB recent indication that it plans to rescind its Section 1033 Personal Financial Data Rights rule, a sweeping regulation finalized in late 2024 that aimed to increase consumer access to personal financial data and promote competition in financial services.
The CFPB has not formally rescinded the rule but stated in a recent court filing that it intends to do so. DCUC said it will continue working with regulators to ensure future policies align with member needs and credit union values.
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The CFPB’s shift in position comes amid ongoing legal and industry backlash, with critics arguing that the rule, though well-intentioned, imposed significant risks and operational burdens — particularly for smaller financial institutions like credit unions.
“Any compromise in data security directly impacts our members and the communities they serve,” Anthony Hernandez, DCUC's president/CEO, said. “We’ve consistently called on the need for consumer protection policies that don’t place credit union members at risk.”
The 1033 rule required financial institutions to provide consumers free access to their data and enable sharing with third-party fintechs. While proponents argued it would empower consumers and foster innovation, credit unions voiced concern that the rule exposed them to elevated reputational risk, data breaches and compliance challenges, especially in the absence of robust third-party oversight.
DCUC also cited the strain the rule could place on smaller credit unions, which often lack the technical infrastructure to securely implement data-sharing protocols without incurring major costs.
“We appreciate the CFPB’s willingness to listen to stakeholder feedback and reevaluate the potential impact of this rule,” Jason Stverak, DCUC's chief advocacy officer, said. “This decision moves us closer to a balanced regulatory environment that promotes innovation and protects consumers — while also preserving the integrity and operational viability of credit unions.”
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
