Alert October 15, 2013

CFPB Finalizes Policy for Testing New Consumer Disclosure Policy

The CFPB announced that it finalized its policy to approve requests by supervised entities for waivers from consumer disclosure obligations to allow for the testing of alternative disclosures. The Dodd-Frank Act gives the CFPB authority to approve trial disclosure programs. 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.