CFPB Finalizes Rule for Prepaid Accounts

The Consumer Financial Protection Bureau (CFPB) has issued a final rule modifying general Regulation E requirements to create tailored provisions governing disclosures, limited liability and error resolution, and periodic statements, and adds new requirements regarding the posting of account agreements. Additionally, the final rule regulates overdraft credit features that may be offered in conjunction with prepaid accounts. Subject to certain exceptions, such credit features will be covered under Regulation Z where the credit feature is offered by the prepaid account issuer, its affiliate, or its business partner and credit can be accessed in the course of a transaction conducted with a prepaid card.   This rule is effective 10/01/2017. The requirement to submit prepaid account agreements to the Bureau is delayed until 10/01/2018. The final rule may be viewed here.


By, Eric Skrum