Employee Auto-Savings Account Trial Disclosures Approved by CFPB

July 17, 2020, 8:33 PM UTC

Build Commonwealth Inc., a nonprofit working on financial health issues, gained federal approval for financial disclosure language that companies can use to create automatic emergency savings accounts for low- and moderate-income employees.

The Consumer Financial Protection Bureau’s Friday approval, issued in a no-action letter, indicates the financial industry regulator wouldn’t bring enforcement or other regulatory action against companies that use a special template to disclose the program’s terms to their employees.

Companies can use the template to get CFPB approval to launch their own auto-savings programs, the agency said.

In the program, a portion of an employee’s pay would ...

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