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CFPB Finalizes Prepaid Delay, Now Effective April 1, 2018
Monday, April 24, 2017 6:45 AM

The Consumer Financial Protection Bureau finalized its delay of its prepaid accounts rule Thursday, moving the effective date to April 1, 2018. The rule was originally scheduled to take effect Oct. 1.

The final rule subjects prepaid accounts that access certain overdraft services or credit features to Regulation Z requirements by defining them as “credit cards.”

In addition to finalizing the effective date, CFPB is also re-evaluating:

  • Linking credit cards to digital wallets that are capable of storing funds; and
  • Error resolution and limitations on liability for prepaid accounts that cannot be registered, have not yet been registered, or for which consumers have attempted but have not successfully completed the registration process.

The bureau has indicated it will accept comments on these issues in the coming weeks.

“Cornerstone submitted a letter in favor of extending the compliance date and requesting that CFPB further study some of the problematic aspects of the proposal," said Cornerstone SVP Regulatory Compliance Counsel Suzanne Yashewski. "We are pleased to see a move in the right direction by CFPB."

While CUNA continues to have concerns with the prepaid accounts rule, it believes the changes made from the proposed version of the rule along with the delayed effective date will make compliance more manageable.