CFPB Issues Policy on No-Action Letters

CFPB

On February 18, the CFPB finalized its policy on No-Action Letters, which was originally proposed in October 2014. The No-Action Policy is intended to create a process for companies to apply for a No-Action Letter (NAL) from the CFPB in “instances involving innovative financial products or services that promise substantial consumer benefit” where provisions of the statutes implemented or regulations issued by the CFPB are vague. According to CFPB Director Cordray, the new policy is “designed to improve access to consumer financial products and services that promise substantial consumer benefits.” Denial of applications will be made at the discretion of the CFPB staff, who will not be required to “provide specific reasons for declining to provide NALs.” According to the policy statement, the CFPB has “limited resources to devote to NALs” and anticipates receiving approximately “one to three actionable applications per year.”