Joint Trades Urge CFPB to Preserve Fee-Free Open Banking

The Retail Industry Leaders Association (RILA), National Retail Federation, Financial Technology Association, and several other trade organizations submitted a joint letter to Acting CFPB Director Russell Vought regarding the future of Section 1033 open banking regulations. The coalition urges the Consumer Financial Protection Bureau to protect consumers' existing right to securely share their financial data with trusted applications and services of their choosing while preserving the statutory prohibition on data access fees. [Joint Trad....14.26 (2) | PDF]

The letter argues that allowing large financial institutions to impose data access fees or restrict data-sharing through arbitrary usage limits would reduce competition, increase costs for consumers and businesses, and create barriers for financial technology innovation. The coalition also notes that fee-based access models would place the United States behind other major economies that have adopted open banking frameworks that enable consumer-authorized financial data sharing without access fees. [Joint Trad....14.26 (2) | PDF]

In addition, the signatories contend that data rationing thresholds are inconsistent with the purpose of Section 1033 and would undermine modern financial products that rely on secure, real-time consumer-authorized data access. Retailers, fintech providers, policymakers, and stakeholders interested in consumer financial services, competition, and innovation can review the letter to better understand the industry's recommendations for implementing a competitive and consumer-focused open banking framework. Download the letter to explore the coalition's full position and policy recommendations.