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June 19, 2017

CFPB invites comments on proposed changes to prepaid rules

The US Consumer Financial Protection Bureau (CFPB) has proposed a number of changes in earlier issued prepaid rules in 2016 and invited comments on proposed changes to its final rules that will be ultimately issued after 1 April 2018.

Earlier, the deadline for implementation of prepaid rules was set as October 2017, which was put on hold amid an outcry from financial institutions.

According to CFPB, the delay will provide industry participants more time to implement necessary changes and give the CFPB time to decide if it should change any provisions.

Furthermore, the bureau also sought comments about whether to delay the rule’s implementation date further based on time required to comply with the latest round of proposed changes.

As per the earlier issued rules, financial institutions issuing prepaid cards would have to give consumers straight information regarding fees and other details, probe potential errors and provide other consumer protections and limit consumer losses when cards are lost or stolen.

CFPB director Richard Cordray said: “We know that effective implementation helps our rules deliver their intended value to consumers.

“Today’s request for comment shows we are listening closely to feedback on our rules to decide whether certain adjustments will help to achieve that goal.”

CFPB said that people who wish to comment will have a deadline of 45 days after the proposal is published in the Federal Register.

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