In a letter to the CFPB’s acting director, America’s Credit Unions calls for targeted changes to the No-Action Letter (NAL) program while acknowledging how the program bolsters innovative financial services. In particular, changes to ease regulatory hurdles and support multi-year, collaborative testing would provide added help for credit unions in using the program. 

“The revised NAL policy generally aligns with credit unions’ mission to expand access to affordable financial services,” America’s Credit Unions’ Head of Regulatory Advocacy James Akin wrote in a letter to acting CFPB director Russell Vought. “The NAL program, if implemented effectively, can provide a structured pathway for credit unions to test these solutions without fear of inadvertent violations.”

The letter responds to a CFPB-issued policy statement announcing reinstating the NAL program in a revised format.  Akin applauds the policy revisions  but outlines specific needed changes to reduce regulatory uncertainty that hinders credit unions.

The specific changes that America’s Credit Unions supports include:

• Extending the NAL two-year expiration window for products that require multi-year testing, contingent on interim compliance reviews;
• Allowing collaborative NAL applications, an approach mirroring successful models abroad;
• Applying a fast-track NAL process for crises, as well as a case-by-case review process allowing credit unions with recent enforcement actions, which demonstrate corrective actions, to access the NAL program;
• Amending the requirement to publish applications on Regulations.gov to allow redacted sections in initial postings and releasing full applications only after granting NALs; and more.

Read the full letter here.