WASHINGTON (Legal Newsline) — The Consumer Financial Protection Bureau (CFPB) announced June 15 that it is seeking comment on proposed updates to its prepaid rule.
The rule, issued in 2016, provides various mandates for how financial institutions must deal with prepaid cards. It requires that institutions limit consumers’ losses when funds are stolen or cards are lost, investigate and resolve errors, give consumers free and easy access to account information and provide protections if credit is offered.
Amendments to the rule include adjusting the error resolution requirements. Some companies have said that changes made because of fraud concerns could have negative effects for consumers. Therefore, the CFPB seeks comment on whether it should change the rule’s approach. Another change would involve providing more flexibility concerning credit cards linked to digital wallets.
“We know that effective implementation helps our rules deliver their intended value to consumers,” said CFPB Director Richard Cordray. “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.”
The CFPB notes that comments must be made within 45 days of the proposal.