The CFPB has been
working on an initiative to standardize the marketing and disclosure of prepaid
cards, which have been rising in popularity. In May 2012, the Bureau released
Noticed of Proposed Rulemaking (ANPR) for prepaid cards. In response to
this notice, CUNA submitted a comment letter to the CFPB, which is available here.
While the Bureau has not yet finalized any rules for these
products, it has been soliciting input on two
model disclosures that is has designed.
The CFPB has begun consumer testing of these model forms, so we invite credit
unions currently offering prepaid cards to review these models and submit
comments to the Bureau. The CFPB says
that we should expect a proposed regulation on prepaid cards in June, with further testing in the fall of this year.
Now that CFPB has
wrapped up its Congressionally-mandated mortgage rulemakings, it is moving on
to its second-tier of regulatory issues. High on this list is establishing
federal standards for payday lending. While this industry is regulated by some
states, there are currently no payday standards on the federal books. CFPB has
released two reports on payday lending; one in April 2013, and
another one just this week. The
Bureau also held a field hearing on payday lending on Tuesday, March 25, 2014.
These actions indicate that an NPRM for payday is likely to drop
As you’ll recall, back
in 2013, the NCUA released an ANPR, signaling its intent to amend the agency's 2010
Payday Alternative Loan (PAL). We’re thinking that NCUA may be delaying
proposing amendments to the PAL program until the CFPB has finished its own
payday rules, which are expected to be proposed later this year.