The Consumer Financial Protection Bureau (CFPB) finalized its delay of its prepaid accounts rule Thursday, moving the effective date to April 1, 2018. The rule was originally scheduled to take effect Oct. 1.
While CUNA pushed the bureau to delay the rule by 1 year in a comment letter sent earlier this month, it still supports the delay.
The final rule subjects prepaid accounts that access certain overdraft services or credit features to Regulation Z requirements by defining them as “credit cards.”
In addition to finalizing the effective date, CFPB is also re-evaluating:
The bureau has indicated it will accept comments on these issues in the coming weeks.
While CUNA continues to have concerns with the prepaid accounts rule, it believes the changes made from the proposed version of the rule along with the delayed effective date will make compliance more manageable.
More information can be found at CUNA’s Removing Barriers Blog.