Prepaid card rule on back burner?

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[author: Alan S. Kaplinsky]

Stephen Shinn, a staff lawyer at the CFPB, spoke Saturday morning at the ABA Annual Meeting in Chicago about the status of the Advance Notice of Proposed Rulemaking regarding general purpose reloadable prepaid cards.

He reported that the Bureau received 230 comment letters. He indicated that if the Bureau decides to issue a proposed rule, that won’t occur until after the Bureau finalizes all of the regulations it is required to issue under Dodd-Frank. Think mortgages! Mr. Shinn explained that the issuance of a regulation dealing with prepaid cards is discretionary. It is not mandated by Dodd-Frank.

Accordingly, it seems likely that a proposed regulation will not be issued until at least the first quarter of next year.

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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