CFPB Delays Effective Date of Prepaid Rule
Posted April 20, 2017 by CUNA Advocacy

Today, the CFPB announced a six-month delay of the effective date of the prepaid accounts rule. Originally scheduled to take effect October 1 of this year, the delay pushes the effective date to April 1, 2018. While CUNA filed a comment letter with the CFPB urging for a one-year delay, we support the six-month delay, which will allow additional time for credit unions and vendors to make changes necessary under the final rule. 

In addition to finalizing the effective date, the CFPB is also re-evaluating the following issues and will accept comments on them in the coming weeks. 

  • 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. 

While CUNA continues to have concerns with the prepaid accounts rule, we believe the changes made from the proposed version of the rule along with the delayed effective date will make compliance more manageable. On this and all other issues affecting credit union operations, we will continue to fight on behalf of America’s credit unions and their 110 million members for common-sense regulations and reform.

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