The CFPB on Nov. 15 released a fact sheet with details on the effective dates for compliance with the new prepaid accounts rule. While most new requirements and changes are effective Oct. 1, 2017, and the requirement to submit prepaid account agreements to the bureau is effective Oct. 1, 2018, there are some exceptions and accommodations, according to the fact sheet. The bureau created a chart highlighting related exceptions and accommodations, but stressed that the information is not a substitute for reviewing the prepaid rule.
The prepaid rule does not require FIs to pull and replace prepaid account packaging materials or prepaid account access devices, provided that those materials are produced in the normal course of business prior to October 1, 2017, even if these materials would not otherwise comply with the prepaid rule’s disclosure requirements. This exception applies to disclosures contained on, in, or with packages for prepaid accounts; for example, disclosures on packages sold at retail and disclosures for payroll card accounts or government benefit accounts that are distributed in packages or envelopes. It does not apply to disclosures that the FI makes available or provides electronically, orally, or in any form other than on pre-printed materials. Despite this possible olive branch to the industry, experts are concerned that having non-compliant terms and conditions/cardholder agreements in the marketplace could open them up to litigation or regulatory scrutiny.
- Viewpoint: The CFPB’s Prepaid Rule Makes Positive Changes, but Compliance Challenges Remain
- Webinar: CFPB Final Rule on Prepaid Accounts: The Rules and Their Short- and Long-Term Impacts
- Paybefore’s Coverage of CFPB’s New Prepaid Rules