The Consumer Financial Protection Bureau (CFPB) seeks comments on proposed changes to its prepaid rule, which is scheduled to take effect April 1, 2018. The rule subjects prepaid accounts that access certain overdraft services or credit features to Regulation Z requirements by defining them as “credit cards.”
CUNA continues to have concerns with the prepaid accounts rule, but believes the changes made from the original proposed version, along with the delayed effective date, makes compliance more manageable.
CUNA supported a 1-year delay of the rule’s implementation date, the bureau announced a 6-month delay earlier this year to April 1, 2018 from Oct. 1.
In this proposal, the CFPB is requesting comment on whether a further delay would be necessary and whether an express provision addressing early compliance is needed.
Per the CFPB, the proposal also addresses concerns raised by prepaid companies about what they described as unanticipated complexities with certain aspects of the rule.
The proposed changes would:
The bureau is also proposing other minor adjustments and clarifications to aspects of the prepaid rule that the CFPB has received questions about or been told are presenting obstacles to implementation.
Comments will be due within 45 days of the proposal’s publication in the Federal Register, which is expected in the coming weeks.