CUNA’s request for a delay in the effective date of the Consumer Financial Protection Bureau’s (CFPB) prepaid accounts rule has been granted to allow additional implementation time, the bureau announced Thursday. It also expects to issue a final rule amending parts of the prepaid rule.
“We’re pleased to see the CFPB announce the implementation delay of the rule, which we have stated will provide issuers and vendors adequate time to made the required changes,” said CUNA Chief Advocacy Officer Ryan Donovan. “While we have concerns over the rule’s application to certain prepaid accounts, we appreciate the bureau’s willingness to issue a clarifying rulemaking, and CUNA will engage with the bureau further on ways the rule can avoid placing additional burdens on credit unions.”
The rule extends Regulation E coverage to prepaid accounts and generally expanded Regulation Z’s coverage to overdraft features that may be offered in conjunction with prepaid accounts. CUNA is concerned about the unintended impact the rule may have on the ability of issuers to continue providing prepaid account access.
CUNA asked for the delay, and reiterated its concerns in an August comment letter on proposed changes to the rule.