CFPB Updates No Action Letter Policy as Acting Director Leaves

On his final day as acting director of the CFPB Mick Mulvaney signed an updated no action letter policy that significantly broadens the protection for fintech firms to test new technology; the move was widely criticized by advocacy groups as they say the new policy will encourage bad actors; the newly sworn in director, Kathy Kraninger, will now add this to her plate of duties as she takes over on a full time basis after being confirmed by the Senate; the letter states they will focus on, “quality and persuasiveness of the application, with particular emphasis on the potential benefits of the product or service in question for consumers”; companies will also have to include the regulatory provision from which they are seeking relief when applying for a no action letter. Source.