CFPB Issues Prepaid Accounts Amendments

On January 25th the Consumer Financial Protection Bureau (CFPB) released updates to the 2016 prepaid accounts rule.  The CFPB issued a proposal to amend the rule back in June of 2017.  The new effective compliance date for the rule is April 1, 2019.  The updates change the error resolution and limited liability requirements so that financial institutions are not required to resolve errors or limit liability on unverified prepaid accounts.  The changes also make it easier to link digital wallets to traditional credit card accounts for full federal credit card protections.

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John Zasada is a principal with CLA and leads the firm’s financial institution regulatory compliance practice. He assists banks and credit unions 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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