CFPB’s prepaid card rule survives Congress challenge

Last October, the CFPB issued its Final Rule for Prepaid Accounts which established comprehensive consumer protections for prepaid accounts under Regulation E. Due to the timing of the rule, Congress had until Thursday to repeal the regulation by passing a disapproval resolution in both chambers with simple majorities under the Congressional Review Act (CRA). That [...]

By | 2017-05-12T11:08:47+00:00 May 12th, 2017|0 Comments

CFPB delays effective date of Prepaid Accounts Rule

On April 20, the CFPB finalized a proposed rule to delay the effective date of the Prepaid Account Rule. The final rule governing prepaid accounts will be delayed six months, from October 1, 2017 to April 1, 2018. According to the CFPB, the Bureau discovered that “some industry participants believed that they would have difficulty [...]

By | 2017-04-27T07:12:57+00:00 April 27th, 2017|0 Comments

NetSpend to pay $53 million in settlement with FTC

Last week, the FTC announced that NetSpend, one of the nation’s largest providers of prepaid debit cards, had agreed to pay $53 million to settle allegations that it deceived consumers about their ability to access funds loaded onto their cards. In November 2016, the FTC filed a lawsuit alleging that NetSpend engaged in misleading advertising [...]

By | 2017-04-04T07:09:45+00:00 April 4th, 2017|0 Comments

CFPB proposes delay to Prepaid Card Rule effective date

On March 9, 2017, the CFPB released a proposal to delay the effective date of its final rule govern prepaid accounts by six months. This proposal will push the effective date back from October 1, 2017 to April 1, 2018. Through ongoing discussions with companies in the prepaid industry, CFPB staff learned that some industry [...]

By | 2017-03-13T11:46:27+00:00 March 13th, 2017|0 Comments

Mastercard and UniRush settle with CFPB for $13 million

On February 1, the CFPB entered into a consent order with Mastercard and UniRush for what the CFPB termed “preventable” breakdowns that left consumers unable to access their own money. UniRush, LLC, which is headquartered near Cincinnati, Ohio, is the program manager for RushCard. RushCard is a reloadable prepaid debit card co-founded by Russell Simmons. [...]

By | 2017-02-02T12:53:46+00:00 February 2nd, 2017|0 Comments