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CFPB finalizes changes to prepaid accounts rule

Joe Mont | January 29, 2018

Touting changes that “provide more flexibility” and extending the effective date to April 2019, the Consumer Financial Protection Bureau has finalized updates to its prepaid rule.

The Bureau’s 2016 prepaid rule put in place requirements for treatment of funds on lost or stolen cards, error resolution and investigation, upfront fee disclosures, access to account information, and overdraft features if offered in conjunction with prepaid accounts.

The announced changes adjust requirements for resolving errors on unregistered accounts, provide greater flexibility for credit cards linked to digital wallets, and extend the effective date of the rule by one year to April 2019.

Prepaid accounts are among the fastest growing consumer financial products in the United States, usually purchased at retail outlets or online. According to industry analysts, the amount...

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