• CFPB Trial Disclosure Program Now Effective
  • November 15, 2013 | Authors: Robert E. Bostrom; Peter L. Cockrell; Brett M. Kitt; J. Scott Sheehan
  • Law Firms: Greenberg Traurig, LLP - New York Office ; Greenberg Traurig, LLP - McLean Office ; Greenberg Traurig, LLP - Washington Office ; Greenberg Traurig, LLP - McLean Office ; Greenberg Traurig, LLP - Houston Office
  • On October 29th, the CFPB’s Notice of Policy regarding its Trial Disclosure Program was published in the Federal Register, thus making the Policy effective.1 Section 1032(e) of the Dodd-Frank Act permits consumer financial service providers to “conduct a trial program that is limited in time and scope, subject to specified standards and procedures, for the purpose of providing trial disclosures to consumers.” Also pursuant to Section 1032(e), the CFPB is permitted to “establish a limited period during which a trial disclosure program shall be deemed to be in compliance with, or exempted from, a requirement of a rule or an enumerated consumer law.” The Policy fulfills this statutory provision.

    The goal of the Policy is to encourage “banks, thrifts, credit unions, and other financial services companies to innovate by proposing and conducting [trial disclosure programs].” The Policy contains four sections:

    • Section A describes which proposed programs will be considered eligible for a temporary waiver;

    • Section B lists factors the CFPB will consider in deciding which eligible programs to approve for such a waiver;

    • Section C describes the CFPB’s procedures for issuing waivers; and

    • Section D describes how the CFPB will disclose information about these program

    1   The Notice of Policy is available at http://www.gpo.gov/fdsys/pkg/FR-2013-10-29/pdf/2013-25580.pdf.