The Bureau of Consumer Financial Protection (“CFPB”) issued a proposed rule requesting public comments with regard to amendments related to prepaid accounts under Regulation E, which implements the Electronic Fund Transfer Act, and Regulation Z, which implements the Truth in Lending Act. The CFPB published a final rule on prepaid accounts in November of 2016, which was subsequently amended to extend the effective date due to industry concerns about being able to timely comply with this final rule. This most recent proposal seeks comments on the following topics: (1) revision of the error resolution and limited liability provisions so that financial institutions would not have to resolve errors or limit consumer liability on prepaid accounts when the customer’s identity has not been verified; (2) creation of an exception to credit-related provisions regarding credit card accounts linked to digital wallets that can store funds; and (3) modification of several provisions for clarity purposes. Finally, the proposed rule seeks comments on whether a further delay in the effective date is warranted.
Comments must be received 45 days after the proposed rule is published in the Federal Register.
Click here for more information on the proposal.