WASHINGTON—The CFPB has proposed a six-month delay – to April 1, 2018 – of its prepaid account rule's effective date, currently set for Oct. 1.
Comments on the proposed delay will be due 21 days after the proposal's publication in the Federal Register.
The CFPB’s prepaid rule creates new consumer protections for prepaid accounts under Regulations E and Z. The rule was finalized in October 2016, leaving credit unions only a year to prepare. NAFCU said that it had previously requested an 18-month implementation timeline for the rule.
NAFCU said it has expressed disappointment that credit unions’ unique structure and high level of member service were not recognized in the final rule.
Last month, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt called for lawmakers to use the Congressional Review Act to unwind recent regulation including the prepaid rule.