The Consumer Financial Protection Bureau on June 15 proposed several changes to its final rule on prepaid products, whose implementation has been delayed until April 1, 2018. The bureau also invited comments about whether to delay the rule's implementation date further based on time needed to comply with the latest round of proposed changes.
The proposal would adjust requirements for resolving errors on unregistered accounts and provide greater flexibility for credit cards linked to digital wallets. Specifically, the bureau is proposing to revise the error resolution and limited liability provisions of the prepaid rule to clarify that "financial institutions would not be required to resolve errors or limit consumers' liability on unverified prepaid accounts." The CFPB proposed a limited exception to the prepaid rule for credit card accounts linked to "digital wallets" that customers use to store funds, since the credit card accounts are already subject to Regulation Z. The bureau also proposed several minor clarifications and technical adjustments.
The bureau has also released an updated compliance guide for small entities. The latest version reflects the delay of the effective date and several elements of additional guidance.
Comments on the proposed rule are due 45 days after it is published in the Federal Register.
Read the proposed rule.