CFPB Revamps Policy to Encourage Innovative Consumer Disclosures
September 10, 2018
Five years after the Consumer Financial Protection Bureau finalized a policy for trial consumer disclosures that saw no such disclosures authorized, the bureau is retooling its policy to encourage more companies to develop trial disclosures.
In a Federal Register filing set to be published today, the bureau is proposing a new policy that would streamline the application period, set a 60-day deadline to grant or deny an application, specify that a two-year testing period would be the norm (with extensions to be based on evidence of effectiveness) and clarify that the CFPB’s trial disclosure program will coordinate with state regulatory “sandboxes.”
The proposed policy addresses several concerns ABA raised about the original program in 2013. It allows groups of institutions or associations to submit applications on behalf of members, unlike the bureau’s earlier policy. It also provides longer standard testing periods and allows testers to continue using effective disclosures while the CFPB amends its rules to incorporate successfully tested disclosures. The CFPB also said it would engage in preliminary conversations with interested institutions. Comments on the proposed policy are due by Oct. 8. Read the proposed policy. Read ABA’s 2013 comment letter.