ABA seeks broad CFPB preemption ruling

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In August, the CFPB issued a notice seeking public comment on its plans to determine whether certain provisions of Maine and Tennessee laws relating to unclaimed gift cards are preempted by federal law on gift card expiration dates. We were pleased to see that the CFPB had invited public input and, in response to that invitation, the American Bankers Association submitted a comment letter earlier this week urging the CFPB to issue a broad preemption ruling.

More specifically, the ABA wants the CFPB to establish a rule preempting any state abandonment or escheat laws applicable to gift cards that would trigger transferring funds to states prior to the expiration date of the funds underlying the card. According to the ABA, such a ruling “would avoid conflict with the Regulation E requirement that the funds remain available for at least five years and protect consumer interest.”

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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