CFPB Extends Effective Date for Prepaid Accounts Rule
Tue 25 Apr, 2017 / by McIntyre & Lemon / Client Alerts
04/25/17 – The CFPB has released a final rule extending the effective date of its prepaid accounts rule by six months.
The rule will now take effect on April 1, 2018. This is based on feedback the CFPB received from industry participants who believed they would have difficulty complying with certain aspects of the rule by the original Oct. 1, 2017 effective date.
The CFPB has also decided to revisit at least two substantive issues in the prepaid accounts rule through a separate notice and comment rulemaking process. These two issues are:
- The linking of credit cards to digital wallets that are capable of storing funds; and
- Error resolution and limitations on liability for prepaid accounts that cannot be registered, have not yet been registered, or for which consumers have attempted but have not successfully completed the registration process.
The CFPB will address these issues through a separate notice and comment rulemaking process.