CFPB sets first tech sprint Oct. 5-9 on consumer adverse action notices
The Consumer Financial Protection Bureau’s (CFPB) first Tech Sprint will take place Oct. 5 to 9 and focus on developing a range of innovative approaches to electronically-delivered adverse action notices. Tech Sprints gather regulators, technologists, financial institutions, and subject matter experts from key stakeholders for several days to work together to develop innovative solutions to clearly-identified challenges.
Applications are due by Friday, Sept. 11.
CUNA supported the development of Tech Sprints at the CFPB and urged the CFPB to ensure credit unions have a seat at the table
The sprints will be held virtually and generate actionable ideas and help inform future disclosure policy options in a range of markets. The application period is closes Sept. 11.
Teams will be asked to show how electronically-delivered adverse action notices can improve on current notices to better realize three core goals:
- Accuracy - using accurate information to take adverse action
- Anti-discrimination - preventing illegal discrimination in credit decisions
- Education - helping consumers fare better in future credit applications
The disclosures and disclosure methods that participants develop do not necessarily need to meet every legal requirement as long as the ideas developed fulfill or better realize the three goals discussed above.
The problem statement suggests some ways to improve upon existing notices, or participants may have their own ideas.
Tech Sprint participants may apply to use their disclosure solutions in market under the Bureau’s Trial Disclosure Policy if they choose.