The CFPB has issued a final rule to delay the effective date of the Prepaid Accounts Rule until April 1, 2018 due to concerns of being in compliance by October 1, 2017. This delay won’t impact the October 1, 2018 effective date for submitting prepaid account agreements to the CFPB, however.
The delay is also giving the CFPB some time to determine whether any changes should be made to the Rule. The CFPB is planning to release a separate proposal to specifically address at least two issues within the Rule:
- The linking of credit cards into digital wallets capable of storing funds; and,
- Error resolution and liability for prepaid accounts that cannot be or have not been registered.
We’ll keep you updated on where we go from here!