CFPB Further Delays Prepaid Proposed Rule

Industry anticipation continues to grow as the Consumer Financial Protection Bureau (CFPB) announced that its general-purpose reloadable (GPR) prepaid card proposal will now be issued by the end of the summer. Although this delay is not unexpected, the CFPB indicated as recently as last month that it would publish a proposed prepaid card rule no later than June 2014. Nonetheless, Director Richard Cordray has told congressional committees that a proposed rule will be ready by the end of the summer.


Despite the delay, the CFPB has offered some insight into the substance of the prepaid card regulations. For example, last week Director Cordray told the House Committee on Financial Services that the packaging for most prepaid cards is too small to provide the types of disclosures that the CFPB believes consumers need. In a March blog post, the CFPB released model disclosures for prepaid card packaging being considered by the CFPB in connection with its anticipated rulemaking. The CFPB intends the model disclosures to enable consumers to make side-by-side—or, in the Director’s words, “apples-to-apples”—comparisons.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

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.

© Morrison & Foerster LLP | Attorney Advertising

Written by:


Morrison & Foerster LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.