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The CFPB last week announced its intentions to further delay the effective date of its 2016 prepaid rule, which is currently April 1, 2018. NAFCU has consistently urged the CFPB to rescind the rule entirely or, at the very least, exempt credit unions from it.

NAFCU Regulatory Affairs Counsel Andrew Morris, in response to the CFPB's statement, reiterated the association's recommendation to exempt credit unions from the rule, but said NAFCU "welcome[s] the prospect of having additional time to implement it."

"We also look forward to the bureau finalizing its recently proposed amendments, which are aimed at alleviating regulatory burden," Morris continued.

The CFPB said it plans to issue a final rule to amend various aspects of the rule in early 2018.

In June, the CFPB issued a proposal that would adjust the final rule's requirements for resolving errors on unregistered accounts and provide greater flexibility for credit cards linked to digital wallets. NAFCU submitted comments on the proposal in August and recommended the effective date be delayed one year to April 1, 2019.

The bureau said it is because of comments received on the proposal that it has decided to further delay the effective date "to allow additional time for implementation of the final rule."

The prepaid rule creates new consumer protections for prepaid accounts under Regulations E and Z. The rule was finalized in October 2016 and was originally set to take effect Oct. 1, 2017.