On March 9, 2017, the CFPB released a proposal to delay the effective date for certain provisions of the prepaid accounts final rule for six months, from October 1, 2017, to April 1, 2018.  In its proposal, the CFPB indicated that the proposed extension was prompted by industry concerns about constraints on the ability to pull and replace prepaid card products and related packaging materials with non-compliant disclosures from retail locations before the effective date.  Comments on the proposal to delay the effective date are due 21 days after the proposal is published in the Federal Register.

The CFPB noted that a delayed effective date also would give it the opportunity to evaluate certain substantive aspects of the prepaid accounts final rule that were not anticipated or fully explained during the comment period.  Although the CFPB is not proposing any substantive amendments to the prepaid accounts final rule, the CFPB explained that the delay in the effective date would allow it “to assess whether any additional adjustments to the Rule are appropriate” and issue any proposed revisions it finds necessary and appropriate.  If the CFPB determines that further adjustments are necessary, it will issue a separate proposal.
Continue Reading CFPB Proposes Extension of Effective Date for Prepaid Accounts Final Rule