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Cornerstone Calls on CUs to Comment TODAY on CFPB's Prepaid Accounts Delay of Effective Date
Wednesday, April 5, 2017 7:00 AM

Cornerstone Credit Union League has sent a comment letter to the Consumer Federal Protection Bureau in support of the proposal to extend the effective date of the Prepaid Accounts rule by six months, to April 1, 2018; and all credit unions are requested to file their comment letters today, April 5. 

Comments can be emailed to CFPB at FederalRegisterComments@cfpb.gov. Include Docket No. CFPB-2017-0008 or RIN 3170-AA69 in the subject line of the email.  

In her letter, which you can find here, SVP Regulatory Compliance Counsel Suzanne Yashewski said feedback from the credit union industry demonstrates that credit unions will have difficulty complying with the original effective date of Oct. 1, 2017. Extending the effective date by six months will facilitate compliance and ease burdens on credit unions.

"During this extension, we urge CFPB to assess and consider additional adjustments to the rule which would minimize potential unintended consequences and burdens," Yashewski added. "One suggested revision would be to amend the definition of prepaid accounts that access certain overdraft or credit features as 'credit cards,' as is provided in the revised rule. Cornerstone opposes the application of Reg Z to overdraft services on prepaid products. An anticipated unintended consequence is that consumer choice in prepaid products will be reduced if this aspect of the rule remains."

Review the proposal to extend the effective date.

Need help to file your comment? Visit our compliance site here. To access this site, you'll need your Cornerstone CUpassport ID and password.

If you need help in crafting comment letters, or if you have questions about this proposal, please contact Suzanne Yashewski at syashewski@cornerstoneleague.coop or 512-853-8516.