Removing Barriers Blog

BCFP Policy on Trial Disclosure Programs
Posted September 07, 2018 by Chandler Schuette

The Bureau issued a Notice of Proposed Policy Guidance and Request for Comment related to efforts to encourage the creation of Trial Disclosure Programs (TDP) at financial institutions.  Feedback is due to the Bureau 30 days after publication in the Federal Register

The Dodd-Frank Act provided the Bureau the authority to grant certain legal protections to entities that create TDPs through a Bureau-approved process.  The intent was to encourage innovation and ensure markets for consumer financial products and services are fair, transparent and competitive. 

Under then-Director Cordray, the Bureau issued a proposed “Policy to Encourage Trial Disclosure Programs” in December 2012 and finalized that policy in September 2013.  However, the policy has failed to encourage a single TDP in five years. 

Earlier this year, Director Mulvaney created the Office of Innovation to focus on the Bureau’s statutory mission to “encourage consumer-friendly innovation.” The new office was tasked with addressing the ineffective TDP policy.  This proposal is part of those efforts. 

Last month, CUNA met with the Office of Innovation to discuss “no-action” letters and the TDP policy.  CUNA intends to ensure any process for approving programs is efficient, transparent and does not result in uneven playing fields in the market.