March 09, 2017

CFPB proposes delay to April 2018 for prepaid rule implementation

The CFPB on Thursday proposed a six-month delay – to April 1, 2018 – of its prepaid account rule's effective date, currently set for Oct. 1. Comments on the proposed delay will be due 21 days after the proposal's publication in the Federal Register.

The CFPB's prepaid rule creates new consumer protections for prepaid accounts under Regulations E and Z. The rule was finalized in October 2016, leaving credit unions only a year to prepare.

"While NAFCU remains disappointed that credit unions' unique structure and high level of member service were not recognized in this final rule, we appreciate the bureau's efforts to extend the compliance deadline," said NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt. "NAFCU had previously asked the CFPB for a minimum 18-month implementation timeline to address the challenges involved with this rule."

Last month, Hunt called for lawmakers to use the Congressional Review Act to unwind recent regulation including the prepaid rule.