April 20, 2017

Final: CFPB prepaid rule effective next April 1

The CFPB on Thursday finalized its proposed six-month delay for its prepaid rule, announcing the rule will take effect April 1, 2018.

The prepaid rule creates a host of new requirements for prepaid accounts under Regulations E and Z. The rule was finalized in October 2016, originally leaving credit unions only a year to prepare. NAFCU had urged the bureau to either rescind the rule and reevaluate its economic impact on small financial institutions; or to delay the rule 18 months instead of six.

The CFPB also said it will revisit at least two "substantive issues" in the rule through a separate notice-and-comment rulemaking process; the bureau said the proposal should come within a few weeks. The new rules will focus on the linking of credit cards to digital wallets capable of storing funds, error resolution, and limitations on liability for prepaid accounts that cannot be registered or have not been registered.