The Consumer Financial Protection Bureau (CFPB) finalized changes to its prepaid accounts rule, including delaying the rule’s implementation several months beyond what CUNA requested. CUNA requested in August the bureau delay the rule until at least October 2018, and the bureau delayed it to April 1, 2019.
“As credit unions continue to implement thousands of pages of new rules from the CFPB, we appreciate that it has considered this burden on smaller financial service providers, and is giving them more time for coming into compliance with the prepaid card rule,” said CUNA Chief Advocacy Officer Ryan Donovan. “We will continue to urge the CFPB to consider modifying the rule so Regulation Z requirements do not apply to the overdraft features of prepaid accounts.”
The rule extends Regulation E coverage to prepaid accounts and generally expands 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.
The bureau announced in December it would delay the implementation date of the rule and indicated then it would issue a final rule amending parts of the rule.
In addition to extending the implementation date, Thursday’s changes to the rule will: