Letter to CFPB on Electronic Disclosure on Mobile Devices

Consumer Financial Protection Bureau
1700 G Street, NW
Washington, D.C. 20552

To Whom It May Concern:

The American Bankers Association (ABA) appreciates the opportunity to comment on the Consumer Financial Protection Bureau (CFPB or Bureau) notice and request for comment regarding electronic disclosure on mobile devices (Notice).  We support the Bureau’s efforts to research this important issue, including by seeking information on how consumers currently engage with their finances on different devices. We believe this research is necessary for the proper performance of the functions of the Bureau, and that the results will have practical utility on the advancement of the public’s utilization of disclosures. Importantly, we believe that the Bureau can “enhance the quality, utility, and clarity of the information . . . collected” by working with industry stakeholders, like the ABA.

The Proposed Research is Necessary and Proper Performance of Bureau Functions

Section 1021 of the Dodd-Frank Act requires the Bureau to collect, research, monitor and publish information relevant to the functioning of markets for consumer financial products and services to identify risks to consumers and the proper functioning of such markets. Researching electronic disclosure on mobile devices fit squarely within this statutory mandate. ABA members believe that disclosures provide consumers important and timely information when consuming financial products and services. Consumers and providers of consumer financial products and services are better served when consumers are well informed.

In response to the growing use of mobile devices, financial services providers are continually working to engage consumers in the communications channels they prefer and to make disclosures accessible to consumer customers in a way that best suits their needs. The COVID-19 pandemic accelerated a shift in consumer habits, including by accelerating consumers’ preference for digital engagement for purposes of safety and convenience. As consumers increasingly rely on mobile devices to engage digitally with financial services providers, it is imperative that financial services providers can innovate and adapt to meet consumer demand. ABA members have worked diligently to deliver electronic disclosures across various devices in a compliant manner. As technology continues to evolve, more consumers will use electronic disclosures to engage, and ABA members will be at the forefront of this innovation.

Stakeholder Engagement will Enhance this Information Collection

Involving industry stakeholders throughout the Bureau’s information collection will enhance the quality, utility, and clarity of the information to be collected. From experience in the area, the ABA and its members have insights into the development, execution and management of electronic disclosures. For example, stakeholders will have important insight on, and should have an opportunity to review and provide comment on, the information collection instrument that the Bureau staff intends to use.

Further, we recommend that the Bureau strengthen and fully utilize existing programs within the Office of Innovation (OI), including tech sprints. These programs could offer unique opportunities for the Bureau to productively collaborate with industry stakeholders. The Bureau has already used some of these programs to enhance and improve consumer disclosure. For example, the Bureau’s Tech Sprint on Electronic Disclosures of Adverse Action Notices worked to develop innovative electronic ways to notify consumers of, and inform them about, adverse credit actions. Whether OI programs are part of this research effort, or are executed in parallel, industry stakeholders have the expertise and practical experience to enhance the CFPB’s understanding of electronic disclosures on mobile devices.

We thank you for your consideration of these comments. ABA would be happy to discuss these issues further, present on our existing body of research on these issues, and provide any additional information that would be helpful to CFPB staff.

Sincerely,

American Bankers Association