ARLINGTON, Va.—What are violations of the CFPB’s one-click away rule?
NAFCU Regulatory Compliance Counsel David Park has broken down the rule, which was highlighted in the Bureau's 19th edition of its supervisory activities highlights.
Park said the one-click away rule requirement violations include:
- Using a hyperlink that was not labeled to refer to the triggered disclosures and then requiring the consumer to go through the entire credit card application before providing the triggered disclosures
- Using a series of hyperlinks and not permitting the consumer to view the triggered disclosures until completing a credit card application.
“The commentary to Regulation Z seems to suggest that there are no specific rules about what satisfies the clear and conspicuous standard with respect to the additional disclosures required by sections 1026.16(b)(1)(i) through (iii). See, 12 CFR Part 1026, Supp. I, Comment 16-1,” explained Park. “That said, the practices described in the Supervisory Highlights appear to run contrary to the guidance in the commentary explaining that the one-click away rule requires that the link directly take the consumer to the additional disclosures.”