WASHINGTON—Following the CFPB’s recent delay of its prepaid accounts rule effective compliance date, credit unions must begin complying with the rule April 1, 2018, NCUA Acting Chairman Mark McWatters told federally insured credit unions in a letter this week.
McWatters, in NCUA Letter to Credit Unions 17-CU-03, said institutions that issue prepaid financial products covered under the rule must still submit prepaid account agreements to the CFPB beginning Oct. 1, 2018.
The CFPB last week finalized its proposed six-month delay for its prepaid rule.
The prepaid rule creates a host of new requirements for prepaid accounts under Regulations E and Z. The rule was finalized in October 2016, originally leaving credit unions only a year to prepare. NAFCU emphasized that it has urged the Bureau to both rescind the rule and reevaluate its economic impact on small financial institutions; or to delay the rule 18 months instead of six.
“The CFPB also said it will revisit at least two ‘substantive issues’ in the rule through a separate notice-and-comment rulemaking process; the Bureau said the proposal should come within a few weeks. The new rules will focus on the linking of credit cards to digital wallets capable of storing funds, error resolution, and limitations on liability for prepaid accounts that cannot be registered or have not been registered,” NAFCU reported.