WASHINGTON (7/3/12)--The Consumer Financial Protection Bureau (CFPB) has asked for public comment on nonbank supervisory and notification procedures and information on general purpose prepaid cards that are offered by financial institutions. The Credit Union National Association (CUNA) has encouraged credit unions to provide comments on both of these issues to the CFPB and CUNA in a pair of new Comment Calls.
The CFPB proposed rules set up the process under which the agency could supervise nonbanks to prevent them from offering financial products or services that pose risks to consumers. The CFPB rules for nonbanks do not apply to credit unions, but CUNA continues to monitor the potential impact to credit unions from CFPB supervision of nonbank entities and the implementation of the Dodd-Frank Act.
CUNA in its Comment Call asks credit unions for recommendations regarding how the CFPB should supervise nonbank entities, and whether or not credit unions believe that the potential nonbank supervision standards could impact credit unions or the credit union system.
The CFPB is also seeking information on the costs, benefits, and risks of prepaid card use. The agency in May announced it would begin the process of regulating prepaid cards under Regulation E, which implements the Electronic Funds Transfers Act. The CFPB has not said when it will begin writing new prepaid card rules, but improving the safety and transparency of prepaid cards and their providers will be two main goals of the CFPB's rulemaking effort, according to the agency.
CUNA in this second Comment Call asks if certain aspects of Reg E should be applied to prepaid cards, and how the CFPB could minimize compliance costs as it develops potential prepaid card rules. CUNA is also seeking credit unions' general comments on how prepaid card products are designed and marketed.
Comments are due to CUNA by July 9. The CFPB deadline for comments on either issue is July 24.
For the two comment calls, use the resource links.