- Prepaid Accounts - Proposed Delay
Prepaid Accounts - Proposed Delay
The CFPB is a proposing a six-month delay of the effective date for its prepaid accounts rule; this would push the effective date from October 1, 2017, to April 1, 2018.
The final rule, adopted last October, amends Regulation E to establish certain consumer rights for prepaid accounts-like those for checking accounts. In addition, the rule amends Regulation Z to establish requirements and limitations for prepaid accounts with features such as overdraft protection. The rule also requires new “Know Before You Owe” disclosures for prepaid accounts.
In our comment letter on the proposal, CUNA urged the CFPB to delay the effective date until at least April 2018. CUNA will be filing a letter in support of the proposed delay.