The CFPB announced last Thursday that it expects to issue a final rule amending its final prepaid accounts rule “soon after the new year.” In June 2017, the CFPB issued proposed amendments to the rule.
In its announcement, the CFPB also stated that, as part of that process, it expects to further extend the rule’s effective date. The CFPB previously extended the rule’s initial October 1, 2017 effective date to April 1, 2018. In the proposal, the CFPB sought comments on whether the proposed amendments would make a further extension of the rule’s effective date necessary or appropriate.
The proposal included changes to two of the rule’s particularly controversial aspects: its error resolution and limited liability protections for unregistered accounts and its application to digital wallets. It also included changes or clarifications regarding: the rule’s coverage of loyalty, award, and promotional gift cards; application of the Regulation E unsolicited issuance rules to certain prepaid cards; delivery of the long form disclosure under the retail location exception; provision of pre-acquisition disclosures; and submission of prepaid account agreements to the CFPB.