WASHINGTON—The Network Branded Prepaid Card Association (NBPCA) is asking the CFPB to extend the implementation period for its final prepaid rule and to make revisions to the proposed rule.
“While the proposed changes to the final prepaid account rule are a step in the right direction, there remain significant compliance challenges and issues that must be addressed to avoid disruption of consumer access to prepaid products,” wrote Brian Tate, president and CEO of NBPCA in its comment letter to the Bureau. “To ensure prepaid accounts remain available to the many consumers that rely on them, we will continue to work to address the ongoing concerns outlined in our comment letter.”
The CFPB already has extended the compliance deadline from Oct. 1, 2017, to April 1, 2018, but NBPCA is asking to push it back by a year, to April 1, 2019. The association said various changes included in the CFPB’s proposal will require more time for compliance. The industry group also said a longer delay would be beneficial to avoid product replacement during the holiday season, Banking Technology reported.
NBPCA suggests that the Bureau further evaluate the application of Reg. E to prepaid accounts to reduce fraud and requested that the exemption for loyalty, award and promotional (LAP) cards be extended to any cards not marketed to the general public. The association also contends that prepaid account issuers should be allowed to issue credit cards linked to prepaid accounts just as third parties are permitted to do under the proposed changes, Banking Technology reported.