New rule may make it easier to switch banks and transfer your financial data, but there is already legal pushback

A lot of people stick with their bank for years. Many, many years.

A lot of people stick with their bank for years. Many, many years. That may be because they’re satisfied with the services they get. But in some instances it may be because it’s just too much of a hassle to move their money, especially if they have automated bill payments set up. “Too often, customers stay with a checking account that doesn’t fit their needs because it’s too complicated to switch and risk being charged an overdraft or late fee if they miss a recurring bill,” said Adam Rust, director of financial services at the Consumer Federation of America. A new regulatory rule finalized this month by the Consumer Financial Protection Bureau aims to reduce that hassle and make it easier, more secure and always free for customers to switch accounts or to simply transfer or share their financial data from their banks, credit card issuers and other financial service providers upon request. “Too many Americans are stuck in financial products with lousy rates and service,” said CFPB director Rohit Chopra in a statement. “[The new rule] will give people more power to get better rates and service on bank accounts, credit cards and more.” But the rule, which isn’t scheduled to go into effect until 2026 for large financial institutions and 2030 for smaller ones, is already facing a potential roadblock in the form of a lawsuit filed by banking associations.