ARTICLE · 09 JANUARY 2015
CFPB Proposes New Rules Regulating Prepaid Financial Products
On December 23, the Consumer Financial Protection Bureau issued a proposed rule amending Regulation E, 12 C.F.R. §§ 205.1 et seq. – which implements the Electronic Fund Transfer Act, 15 U.S.C. §§ 1693 et seq. – and Regulation Z, 12 C.F.R. §§ 226.1 et seq. – which implements the Truth in Lending Act, 15 U.S.C. §§ 1601 et seq. – to create comprehensive consumer protections for prepaid financial products.
United StatesFinance and Banking
On December 23, the Consumer Financial Protection Bureau issued
a proposed rule amending Regulation E, 12 C.F.R. §§ 205.1 et seq. –
which implements the Electronic Fund Transfer Act, 15 U.S.C. §§ 1693 et seq. –
and Regulation Z, 12 C.F.R. §§ 226.1 et seq. –
which implements the Truth in Lending Act, 15 U.S.C. §§ 1601 et seq. – to
create comprehensive consumer protections for prepaid financial
products. Noting that prepaid products are among the fastest
growing types of payment instruments in the country, the Bureau
claims that, with certain limited exceptions, these products have
not been subject to existing consumer regulatory regimes that
mandate consumer disclosures, error resolution, and protection from
unauthorized transfers.
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