View Rule

View EO 12866 Meetings Printer-Friendly Version     Download RIN Data in XML

CFPB RIN: 3170-AA22 Publication ID: Spring 2016 
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.  The proposal would also generally 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 accounts that access overdraft services or credit features for a fee would generally be credit cards subject to Regulation Z’s credit card rules.  Moreover, the proposal would require that issuers obtain consumers consent  before adding overdraft services or credit features to their prepaid accounts 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 Bureau’s proposed rule on prepaid accounts was issued in November 2014, and the Bureau anticipates issuing a final rule in early summer 2016.




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. 1693b   
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  07/00/2016 
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