The Consumer Financial Protection Bureau issued a proposal which would allow banks to test different disclosure programs on consumers. The testing would make disclosures more succinct and cost-effective.
"Any company under the CFPB's oversight will be able to submit proposals on new disclosure programs for consumers, including mortgages and credit card products. If the CFPB qualifies the proposed program, it will give the lender a temporary waiver from current laws to test it," writes American Banker's Rachel Witkowski.
CFPB Directory Richard Cordray stated in a press release that with their "efforts to foster innovation in consumer financial markets, the proposed policy will allow companies to conduct real world trials of disclosure alternatives."
If the CFPB qualifies the proposed program, it will give the lender a temporary waiver from current laws to test it.
The Dodd-Frank Act gave the CFPB authority to offer such trail periods to qualified lenders.
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