CFPB Rescinds Revised Policy on No-Action Letters and Policy on Compliance Assistance Sandbox

The CFPB recently announced that it is rescinding the revised Policy on No-Action Letters and the Policy on the Compliance Assistance Sandbox (the Policies) as of September 30, 2022.  The CFPB determined that the Policies did not facilitate consumer-beneficial innovation and did not meet standards for transparency and stakeholder participation.

The revised Policy on No-Action Letters outlined how companies should submit No-Action Letter applications and how the CFPB assessed and issued No-Action Letters.  The Policy on the Compliance Assistance Sandbox detailed how the CFPB would provide a company immunity under a safe harbor provision or grant approval concluding that the company complied with relevant Federal law.

The CFPB allowed the Paperwork Reduction Act authorization for the Policies to expire on September 30, 2022, and accordingly no longer accepts applications under the Policies.  However, the CFPB will continue to accept requests under the revised Policy to Encourage Trial Disclosure Programs.  The CFPB stated that it is working to create new approaches to facilitate development of new products and services.