CFPB Proposes Giving Consumers More Prepaid Product Protections
The Consumer Financial Protection Bureau (CFPB) issued a proposal on November 13, 2014, providing consumers with several new “protections” related to the prepaid product market.
Under the proposal, Regulation E would be amended to include these additional protections. Prepaid accounts would be treated similar to how share draft/checking accounts are currently treated.
Additional protections for prepaid products would include:
- Error resolution procedures
- Periodic statements or online access to account information, including balances and fees
- Lost card and fraud protection
Consumers would also receive new upfront disclosures, including costs and fees. Prepaid account issuers would have to post prepaid account agreements on their websites.
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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