The Consumer Financial Protection Bureau (CFPB) has delayed the effective date of the Prepaid Accounts Rule until April 2019. The CFPB will re-evaluate two issues from the Final Rule:
- Linking of credit cards to digital wallets capable of storing funds, and
- Error resolution and limitations on liability for unregistered prepaid accounts.
More substantive issues may be addressed as the CFPB continues to assess industry and stakeholder concerns, including whether any further extensions of the effective date are needed.
The Prepaid Accounts Rule was issued by the CFPB in October 2016 and makes amendments to the requirements for prepaid cards commonly purchased at retail stores. This Rule will affect Regulation E – Electronic Funds Transfer Act and Regulation Z – Truth in Lending Act. The CFPB proposes to (1) extend Regulation E’s current error resolution and limited liability requirements to all prepaid accounts that have successfully completed the consumer identification and verification process, and (2) to create a limited exception to the credit-related provisions under Regulation Z, among other changes.
The original effective date for the Prepaid Accounts Rule was April 2018.