Jeffrey P. Naimon quoted in VIXIO Payments Compliance article, “PayPal court win could pave the way for further reform"
VIXIO Payments ComplianceJeffrey P. Naimon
Jeffrey P. Naimon was quoted on January 11 in a VIXIO Payments Compliance article, “PayPal court win could pave the way for further reform." The article examined how a recent ruling against the Consumer Financial Protection Bureau focused attention on the outdated patchwork of legislation under which the bureau operates. The CFPB’s "prepaid rule" is an amendment to Regulation E — an implementation of the Electronic Funds Transfer Act.
Naimon noted, “EFTA was enacted in the 1970s and hasn’t really been comprehensively updated by Congress since then, notwithstanding the substantial changes that have occurred in electronic payments since that time. So the regulators have tried to keep up with the times but they can only do so consistent with their authority to promulgate regulations. I think there’s a good likelihood that EFTA will be reviewed, and it could be from just a regulatory perspective where the bureau goes back to see what it can do with this outdated law."
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