Consumer advocates celebrated on Monday a major victory for their fight against the new rule, which will force banks to provide more transparency on how they manage their customers’ money.
The Consumer Financial Protection Bureau announced that it had won a preliminary injunction against the rule from the Federal Trade Commission and the Department of Justice.
The agency said it would appeal the decision.
The agency says the rule will require banks to disclose how many transactions a customer has made on their accounts and to disclose the number of times a customer is on a certain account.
It will also require banks that are not required to disclose these details to do so in the future.
“The rule is a win for consumers and for the rule of law,” said Melanie Sloan, senior vice president at the Center for Responsible Lending, a consumer advocacy group.
“This is a major win for the public interest.”
“This is about transparency, accountability, and consumers’ access to banking.
And this is a victory for consumers,” she added.
The CFPB and DOJ sued the rule, arguing that it would give banks the legal power to control who can and cannot access their customers money, without the consumer’s consent.
The rule has been under consideration since at least March.
The Trump administration has said that the rule would give the bank a tool to control customer access to their accounts.
The agency has said it plans to submit the final rule to the Federal Register for comment by March 31.
It is expected to include more than 100 pages of new information, which is expected in March or April.
The agency said that it was pleased that the court found that the Trump administration’s claims of the rule were wrong.
“In our view, the rule contains no significant new information or clarifications,” the agency said in a statement.
“Instead, it simply requires that the CFPBs rulemaking process be simplified so that it can be fully completed by the end of the month.”
“The CBA will now begin to implement the final rules that we have been working toward for months,” the CFA said in its statement.