CFPB Seeking Comment on Prepaid Cards

The Consumer Financial Protection Bureau (CFPB) has issued an advance notice of proposed rulemaking (ANPR), and is seeking comment, data, and information about general purpose reloadable (GPR) prepaid cards. The bureau intends to issue a proposal to extend Regulation E protections to GPR cards.

More than seven million GPR cards were active by the end of the first quarter of 2012, and that number continues to grow. The CFPB is concerned that consumers, including credit union members, may view GPR cards as an alternative to traditional checking accounts, thereby missing out on the protections associated with account-based transactions.

The bureau is seeking comment on GPR cards in four broad categories: regulatory coverage of products by some or all of Regulation E, product fees and disclosures, product features, and other information on GPR cards.

Specifically the CFPB is asking for feedback as to whether provisions of Reg E should or should not apply to GPR cards, such as error resolution, periodic statement requirements and disclosure requirements. The bureau is also seeking ways to provide transparent, useful and timely fee disclosures, ways a consumer can compare GPR cards with other products, and whether or not the insurance status of GPR cards should be disclosed.

Comments are due to the CFPB by July 23, 2012.

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance.