CFPB Delays Prepaid Rule Effective Date

The Consumer Financial Protection Bureau yesterday proposed extending the effective date of its final rule on covered prepaid accounts. Originally scheduled to take effect on Oct. 1, the proposal would move the effective date to April 1, 2018.

The bureau said that “through our efforts to support industry implementation, we have learned that some industry participants believe they will have difficulty complying with certain provisions of the rule by the current October 1, 2017 effective date.”

The bureau also invited comments from the public on how implementation challenges may affect consumers.”If we determine that any substantive changes to the prepaid accounts rule are necessary and appropriate, we will issue a separate proposal and provide the public an opportunity to comment on those changes before finalizing, it said. Comments on the proposal are due 21 days after it is published in the Federal Register.

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