CUNA backs BCFP’s TDP proposal, offers improvements

October 10, 2018

CUNA generally supports the Bureau of Consumer Financial Protection’s policy to encourage Trial Disclosure Programs (TDP) but recommends any bureau-approved programs be narrow in scope and not excessively deviate from traditional disclosure standards.

The TDP policy outlines how the bureau, would grant a company a waiver on a case-by-case basis from federal disclosure requirements, in order to allow those companies to test trial disclosures.

In the five years the current TDP policy has been in place, the bureau has not approved a single one, which CUNA believes shows a lack of interest in the current policy. The proposal was issued to codify several improvements to streamline the application process, provide certainty for approval timeframes and making the bureau’s liability statement more prominent.

In the letter, CUNA:

  • Supports the bureau’s proposed intention to grant or deny a formal complete application for a TCP within 60 days. The bureau does note that “reasonable requests” for the bureau could be reconsidered, and CUNA recommended the bureau provide a timeframe for appeals to be denied or approved;
  • Supports the provision allowing the bureau to revoke its waiver should an entity fail to abide by its terms and conditions. CUNA also recommends the bureau permit entities “reasonable latitude” to fix any violation prior to revocation;
  • Recommends the bureau allows entities to file a request for extension of the TDP’s approval for up to 90 days prior to its expiration, rather than the proposed 150 days before expiration;
  • Strongly supports the bureau permitting group applications, in which a trade association, vendor or other business could apply on behalf of its members or entities. CUNA believes this will increase the likelihood that credit unions would be able to take advantage of the policy;
  • Recommends the TDP policy clearly state the bureau’s expectations for a financial institution after the revocation of a waiver, as well as when liability protections are null and void. In cases of good faith but unsuccessful efforts, CUNA believes it would be reasonable for the liability protection to end at the point the revocation is effective as opposed to retroactively; and
  • Encourages the bureau to make protections for participating entities as clear and binding as possible to avoid policy swings based on bureau leadership or regulatory changes.