The Network Branded Prepaid Card Association submitted its comment letter to the CFPB on the bureau’s proposed changes to the final prepaid accounts rule on Aug. 4. The trade group is calling for additional revisions to the rule as well as an extended implementation period.
“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,” said Brian Tate, president and CEO of NBPCA. “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 the NBPCA is asking to push it back 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.
The NBPCA also 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. What’s more, the association 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.
The CFPB is accepting comments through Aug. 14.
- CFPB Seeks Comment on Proposed Changes to Prepaid Rule
- Paybefore’s Coverage of CFPB’s New Prepaid Rules
- CFPB to Delay Final Prepaid Rule by 6 Months, ‘Revisit’ Aspects with New Proposal