CFPB Issues Compliance Assistance Sandbox Policy

The Consumer Financial Protection Bureau has issued its Compliance Assistance Sandbox (CAS) Policy, which the Bureau said will enable testing of a financial product or service where there is regulatory uncertainty.  The Bureau explained that, under this policy, after the CFPB evaluates the product or service for compliance with relevant law, an approved applicant that complies in good faith with the terms of the approval will have a “safe harbor” from liability for specified conduct during the testing period.  The Bureau said that approvals under the CAS Policy will provide protection from liability under the Truth in Lending Act, the Electronic Fund Transfer Act, and the Equal Credit Opportunity Act.

The complete CAS Policy can be found here.