Consumer Financial Protection Bureau’s (CFPB) general counsel indicated late Friday that it will petition a U.S. District Court in Kentucky on May 30 to have the rule rescinded. The action took place as part of a status report from the bureau in its defense regarding a lawsuit filed against it and acting Chairman Russell Vought by several banks and the Bank Policy Institute (BPI). BPI and co-plaintiffs argued that the CFPB lacks the authority to mandate free, comprehensive data-sharing and that the rule risks undermining safer, emerging private-sector open banking efforts. They also raised concerns about the rule’s potential to increase fraud and scams, fail to hold third parties accountable, and allow third parties to profit from systems built by banks. “After reviewing the rule and considering the issues that this case presents, Bureau leadership has determined that the rule is unlawful and should be set aside,” the CFPB stated in a court document released late Friday. “To that end defendants intend to file a motion for summary judgment by May 30th, 2025, the date that this court had set for plaintiffs in its March 27th order.” As has been the case with the bureau’s recent announcements, including the recession of the BNPL/Credit Card rule, details were scarce, and reactions muted due to the holiday weekend. The industry will now spend the week identifying and scenario planning for life without the rule, which was enacted in October 2024 and went into phased enforcement in January.