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CFPB RIN: 3170-AA22 Publication ID: Spring 2015 
Title: Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z) 

Prepaid financial products are among the fastest growing types of payment instruments in the United States. The CFPB issued a proposed rule in November 2014 (published in the Federal Register on December 23, 2014) that would create comprehensive consumer protections for prepaid financial products under Regulation E, which implements the Electronic Fund Transfer Act, and Regulation Z, which implements the Truth in Lending Act. The proposal would expressly bring prepaid products within the ambit of Regulation E as prepaid accounts and create new provisions specific to such accounts. The proposal would modify Regulation E to establish disclosure requirements specific to prepaid accounts, would include an option for an alternative to Regulation E’s periodic statement requirement and would apply Regulation E’s limited liability and error resolution provisions to prepaid accounts, with certain modifications. Moreover, the proposal would require prepaid account issuers to post account agreements for prepaid accounts on their websites and require issuers to provide those agreements to the CFPB, which the CFPB would post on a Web site it maintains. Finally, the proposal would also contain amendments to Regulations Z and E to regulate prepaid accounts with overdraft services or credit features. Among other things, prepaid cards that access overdraft services or credit features for a fee would generally be credit cards subject to Regulation Z and its credit card rules. Moreover, the proposal would require that consumers consent to overdraft services or credit features and give them at least 21 days to repay the debt incurred in connection with using such services or features. Further, the compulsory use provision under Regulation E would also be amended so that prepaid account issuers would be prohibited from requiring consumers to set up preauthorized electronic fund transfers to repay credit extended through an overdraft service or credit feature. The CFPB anticipates issuing a final rule after consideration of comments and additional consumer testing.

Agency: Consumer Financial Protection Bureau(CFPB)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: Undetermined  Unfunded Mandates: No 
CFR Citation: 12 CFR 1005    12 CFR 1026   
Legal Authority: 15 U.S.C. 1604    15 U.S.C. 1693   
Legal Deadline:  None
Action Date FR Cite
ANPRM  05/24/2012  77 FR 30923   
ANPRM Comment Period End  07/23/2012 
NPRM  12/23/2014  79 FR 77101   
Comment Period End  03/23/2015 
Final Rule  01/00/2016 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Federal, State 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Kristine Andreassen
Office of Regulations
Consumer Financial Protection Bureau
Washington, DC 20552
Phone:202 435-7700