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 participants have concerns about achieving compliance with the new requirements while also ensuring continued availability of their prepaid products and with minimal disruption to consumers by the October 1, 2017 deadline.
In its press release, the Bureau stated, “We believe that delaying the effective date by six months will be sufficient for industry participants to ensure they can comply with the rule. While we are not proposing to change any other part of the prepaid accounts rule at this time, we are asking the public to provide comments about any implementation challenges that may affect consumers, and how additional time will impact industry, consumers, and other stakeholders.”
The proposal to delay the effective date has a twenty-one day comment period from the date of publication in the Federal Register. While the Bureau is not proposing to amend any substantive requirements at this time, it is soliciting comments about any implementation challenges that might affect consumer and whether six months is an appropriate length of time for an extension.
According to the proposal, the delay will also allow an opportunity for the CFPB to assess whether any additional rule adjustments would be appropriate.
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