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.
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.
Comments are closed.