Reports began to surface yesterday that the CFPB’s final rule on prepaid cards will likely not be released until May or June. The CFPB rulemaking agenda previously indicated that a final rule would be released in March.

We met with the CFPB last fall to discuss the proposed rule, and filed formal comments in response to it. One of our biggest concerns with the proposed rule is the proposal to define prepaid card overdrafts as extensions of credit under Regulation Z. Our comment letter also noted that the application of certain Regulation E requirements may not be appropriate for the different risks and attributes of prepaid accounts.

Director Cordray discussed the prepaid card rule in his testimony this month in front of the House Financial Services Committee, where he stated that the CFPB plans to finalize it in the next few months.