CFPB Announces Advance Notice of Proposed Rulemaking On General-Purpose Reloadable Prepaid Cards

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The Consumer Financial Protection Bureau (“CFPB”) has released an advance notice of proposed rulemaking (“ANPR”) to collect information about prepaid cards, specifically general-purpose reloadable prepaid cards (“GPR cards”), including bank-issued GPR cards. The CFPB says it is interested in learning more about GPR cards, including the related costs, benefits, and potential risks to consumers. In particular, the CFPB plans to use the information gathered in connection with the ANPR to determine whether to extend the consumer protections of Regulation E to GPR cards. Comments are due July 23, 2012.

In the supplemental information accompanying the ANPR, the CFPB discusses the widespread use of GPR cards by consumers, but expresses concern that consumers may not be aware that GPR cards do not have protections commensurate with those of other products, such as bank-issued debit cards and credit cards.

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Published In: Administrative Agency Updates, General Business Updates, Consumer Protection Updates, Finance & Banking Updates

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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