WASHINGTON (12/31/14)--Comments on a Consumer Financial Protection Bureau (CFPB) proposal to create consumer protections for prepaid financial products are due March 23.
The proposal, if approved in final form, would amend Regulation E (which implements the Electronic Fund Transfer Act), Regulation Z (which implements the Truth in Lending Act) and the official interpretations to the regulations.
The protections, proposed by the CFPB in November, were published in the Dec. 23 Federal Register, thereby establishing the comment deadline.
"The proposal would expressly bring such products within the ambit of Regulation E as prepaid accounts and create new provisions specific to such accounts," reads the notice in the Federal Register. "The proposal would generally cover those prepaid accounts that are cards, codes, or other devices capable of being loaded with funds and usable at unaffiliated merchants or for person-to-person transfers, and are not gift cards."
The proposal would:
While only a limited number of credit unions offer prepaid cards, the Credit Union National Association has a variety of concerns about the impact of the proposal on these financial products now and into the future, such as treating overdrafts on prepaid cards as a loan.
CUNA will be working with its consumer protection subcommittee, payments subcommittee and CUNA Council credit union members to identify all concerns and develop recommendations to modify or oppose various provisions in the proposal.
Comments on the proposal are due to the CFPB by March 23.