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ARTICLE · 18 NOVEMBER 2014

CFPB Releases Long-Awaited Proposal On Prepaid Account Products

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Summary: On November 13, 2014, the Consumer Financial Protection Bureau ("CFPB") issued a proposed rule to extend certain federal consumer protections to the prepaid market.

United StatesConsumer Protection
Franca Harris Gutierrez
Franca Harris Gutierrez
Eric Mogilnicki
Eric Mogilnicki
Eamonn K. Moran
Eamonn K. Moran
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Summary: On November 13, 2014, the Consumer Financial Protection Bureau ("CFPB") issued a proposed rule to extend certain federal consumer protections to the prepaid market. This proposed rule marks the CFPB's first discretionary rulemaking with respect to consumer financial products and services, after the completion and implementation of the Dodd-Frank Act required rulemakings over the past few years. The most significant aspect of the proposed rule is that it would apply a number of specific federal consumer protections to broad parts of the prepaid market for the first time. The proposed rule would do so by establishing a new definition of "prepaid account" within Regulation E, along with adopting comprehensive consumer protection rules for such accounts.

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