Senators Request CFPB Issue Guidance And Rulemakings, Bring Enforcement Actions Relating To Payroll Card Programs

Last week, 16 Democratic Senators sent a letter on regulation of payroll cards to Consumer Financial Protection Bureau ("CFPB") Director Richard Cordray and Department of Labor ("DOL") Acting Secretary Seth Harris. The letter urges the CFPB to clarify through rulemaking or guidance the types of federal requirements with which employers must comply when offering payroll cards. Since the current Electronic Fund Transfer Act ("EFTA") and its implementing Regulation E already contain requirements for payroll cards that apply to the bank partners of employers who use such cards, any future rulemaking or guidance will likely clarify or add to these requirements.

OVERVIEW OF THE LETTER