CFPB To Delay Effective Date Of Prepaid Rule

The Consumer Financial Protection Bureau ("CFPB") will delay the effective date of its rule on prepaid card accounts (the "prepaid rule"). The prepaid rule would enhance consumer protections on accounts subject to Regulation E (which implements the Electronic Fund Transfer Act) and Regulation Z (which implements the Truth in Lending Act).

The prepaid rule was scheduled to become effective on April 1, 2018. In June 2017, the CFPB issued a request for comment on proposed changes to the rule. The CFPB said that it intends to "issue a final rule . . . governing prepaid accounts soon after the new year." As a result, the CFPB expects to extend the effective date of the prepaid rule to "allow additional time for implementation . . ."