Alert January 10, 2013

CFPB Proposes Policy for Testing New Consumer Disclosures

The CFPB announced that in line with Project Catalyst (see November 27, 2012 Alert), it is proposing a policy to approve requests by supervised entities for waivers from consumer disclosure obligations to allow for the testing of alternative disclosures. The CFPB hopes the proposed policy will lead to more effective disclosure rules and practices. The policy is divided into four sections:  (1) Section A describes which proposed programs will be considered eligible for a temporary waiver; (2) Section B lists factors the CFPB may consider in deciding which eligible programs to approve for such a waiver; (3) Section C describes the CFPB’s procedures for issuing waivers; and (4) Section D describes how the CFPB will disclose information about the programs. Some factors the CFPB will consider in determining whether to grant a waiver include improvements to consumer understanding, increased cost effectiveness and decreased consumer risk. The comment deadline is February 15, 2013.