The Consumer Financial Protection Bureau ("CFPB" or
the "Bureau") on May 23, 2012 announced that it is asking
for comments about general purpose reloadable prepaid cards
("GPR Cards") through an Advance Notice of Proposed
Rulemaking ("ANPR"). The Bureau intends to issue a
proposal to extend consumer protections provided under Regulation E
to GPR Cards.
Regulation E implements the Electronic Fund Transfer Act and
provides a basic framework for establishing rights, liabilities,
and responsibilities of participants in electronic fund
transactions. Unlike some other "general-use prepaid
cards" such as payroll cards, Regulation E generally does not
apply to GPR Cards. As a result, CFPB Director Richard Cordray
notes that GPR Cards have "far fewer regulatory protections
than bank accounts or debit or credit cards."
