Proposed Rule Summary: Delay of final rule, prepaid accounts

CFPB 12 CFR Parts 1005 and 1026
Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z); Delay of Effective Date

Prepared by the NASCUS Legislative and Regulatory Affairs Department
March 2017

The Consumer Financial Protection Bureau (CFPB) is proposing to delay the October 1, 2017 effective date of the rule governing Prepaid Accounts Under the Electronic Funds Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z) for six months; with the new effective date being April 1, 2018.  Note, the Bureau is not proposing to delay the effective date of the final rule provision that requires the submission of prepaid account agreements to the Bureau.  The effective date for that requirement is October 1, 2018.  Additionally, the Bureau is not seeking to amend any substantive requirements of the Prepaid Accounts Final Rule at this time. 

The Bureau will accept comments until April 5, 2017.  The proposed rule can be found here.

Summary

The Bureau is soliciting comments on the following:

  • Whether it should delay the effective date for the Prepaid Accounts Final Rule?
  • And, if so, whether six months is an appropriate length of time?
  • What are the potential consequences of not extending the effective date?
    • With regard to the consequences noted above, commenters are asked to provide specific detail and any available data regarding current and planned practices, as well as relevant knowledge and specific facts about any benefits, costs, or other impacts of the proposal on industry, consumers and other stakeholders.
  • Whether consumers will be impacted by the delayed effective date of this final rule?
  • Although this proposal does not currently include a proposal to change the effective date for the submission of prepaid account agreements to the Bureau, the Bureau solicits comments as to whether or not it should delay the effective date of this requirement also and if so, for what length of time?