CFPB proposes delay to Prepaid Card Rule effective date

CFPB prepaid rule delay

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.


PHH files opening brief, asks court to eliminate CFPB

PHH files opening briefOn March 10, 2017, PHH filed its opening brief with the DC Circuit and asked the court to “strike down the CFPB in its entirety.”

Last month, the DC Circuit granted the CFPB’s petition for rehearing en banc following an October 2016 ruling by a three-judge panel court that declared the CFPB’s single-director-removable-only-for-cause structure unconstitutional. The panel remedied the constitutional defect by severing the applicable provision in the Dodd-Frank Act and making the CFPB Director removable without cause by the President.


FTC obtains $9 million judgment against United Debt Counselors

United Debt FTCOn March 7, 2017, the FTC issued a press release announcing that it had entered into a stipulated order with a debt relief company that allegedly misled consumers and charged illegal advance fees. Under the terms of the order, the United Debt Counselors, LLC will be prohibited from making misleading claims about its debt relief services.

United Debt Counselors, LLC, formerly known as United Debt Services, LLC (“United Debt” or “Defendants”) is headquartered in Frisco, Texas and has offered and engaged in debt relief services since 2011.


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