InfoBytes Blog
Senators Introduce Joint Resolution to Overturn CFPB's Prepaid Rule; CFPB Releases Prepaid Rule Compliance Guide on Same Day
On February 1, Sen. David Perdue (R-Ga.), and six fellow GOP lawmakers introduced a joint resolution proposing to overturn the CFPB’s final rule on prepaid accounts (Prepaid Rule) before it goes into effect on October 1. The proposed resolution calls for applying the Congressional Review Act to set aside the regulation—which, procedurally, would require only a simple majority vote in the Senate and House and approval by President Trump.
As previously covered by InfoBytes, the Prepaid Rule amends Regulations E and Z to extend disclosure requirements and consumer protections to certain government benefit cards and mobile wallet accounts, payroll cards, Visa- or MasterCard-branded cards sold in retail outlets for general use, and other types of prepaid products. Generally, the Prepaid Rule becomes effective October 1, 2017. The Prepaid Rule does, however, contain certain exceptions and accommodations related to the October 1 effective date.
Earlier that same day, the CFPB issued a small entity compliance guide, which provides a summary of the Prepaid Rule and highlighting information that may be helpful when implementing its various provisions. Among other things, the compliance guide covers: definitions of various prepaid accounts, exclusions in the rule, entities subject to the rule, required disclosures, change-in-terms notices, limited liability and error resolution, periodic statements, receipts at electronic terminals, access devices, compulsory use, account agreements, overdraft credit features, remittances, and record retention. The compliance guide also discusses the exceptions and accommodations related to the effective date noted above, which are also listed in the Prepaid Rule’s Effective Dates Factsheet.