NBPCA requests more changes and time to comply with CFPB’s prepaid accounts rule
US-based Network Branded Prepaid Card Association (NBPCA) submitted its comment letter to the Consumer Financial Protection Bureau’s (CFPB) on the bureau’s proposed changes to the final prepaid accounts rule.
The trade group is calling for additional revisions to the rule as well as an extended implementation period.
“While the proposed changes to the final prepaid account rule are a step in the right direction, there remain significant compliance challenges and issues that must be addressed to avoid disruption of consumer access to prepaid products,” says Brian Tate, president and CEO of NBPCA.
“To ensure prepaid accounts remain available to the many consumers that rely on them, we will continue to work to address the ongoing concerns outlined in our comment letter.”
The CFPB already has extended the compliance deadline from 1 October 2017 to 1 April 2018, but NBPCA is asking to push it back by a year, to 1 April 2019. The association said various changes included in the CFPB’s proposal will require more time for compliance. The industry group also said a longer delay would be beneficial to avoid product replacement during the holiday season.
NBPCA also suggests that the bureau further evaluate the application of Reg. E to prepaid accounts to reduce fraud and requested that the exemption for loyalty, award and promotional (LAP) cards be extended to any cards not marketed to the general public. What’s more, the association contends that prepaid account issuers should be allowed to issue credit cards linked to prepaid accounts just as third parties are permitted to do under the proposed changes.
The CFPB is accepting comments through 14 August 2017.
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