CFPB Finalizes Prepaid Rule Effective Date Extension

On April 20th the Consumer Financial Protection Bureau (CFPB) issued a final rule delaying the prepaid account rule effective compliance date 6 months.  The new effective date is April 1, 2018.  The delay is due in part to feedback received by the CFPB that the implementation of necessary changes would be difficult to complete prior to the original effective date.  The CFPB also announced that it will provide a separate notice and comment process for two prepaid account rule issues:

  • The linking of credit cards to digital wallets that are capable of storing funds.
  • 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.

https://www.consumerfinance.gov/about-us/blog/cfpb-finalizes-effective-date-extension-prepaid-accounts-rule/

  • 218-790-1086

John Zasada is a principal with CLA and leads the firm’s financial institution regulatory compliance practice. He assists financial institutions nationwide in establishing regulatory compliance programs, conducting compliance testing, training staff on regulations, and performing website compliance assessments. In addition, John is a frequent speaker at industry conferences and state associations. Prior to joining CLA, he served as managing director at a top-10 accounting firm and as the compliance officer of a large financial institution, where he developed and implemented its first regulatory compliance program.

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