On March 7, 2018, the FDIC entered into a consent order with The Bancorp Bank for allegedly inaccurate disclosures concerning the amount of transaction fees assessed on cardholders. This consent order is the latest in a series of consent orders from federal agencies in recent years regarding allegedly inadequate or misleading account disclosures. Read our… Read More
Tag Archives: Prepaid Credit Cards
CFPB Amends Prepaid Accounts Rule and Delays its Effective Date
Posted in CFPB, Credit Cards, Regulatory DevelopmentsOn January 25, 2018, the CFPB finalized amendments to its final Prepaid Accounts Rule, which was published in November 2016. The Bureau stated that the 2018 Amendments finalize revisions proposed in June 2017 “generally as proposed, with certain modifications.” The 2018 Amendments address some of the issues raised by industry and delay the effective date… Read More
CFPB Proposes Changes to Prepaid Accounts Rule
Posted in CFPB, Credit Cards, Regulatory DevelopmentsOn June 15, 2017, the CFPB released proposed revisions to its final Prepaid Accounts Rule. The Final Rule was published in November 2016 and was subsequently amended to delay the general effective date by six months, to April 1, 2018. The CFPB is seeking comments on proposed revisions to the Final Rule, as well as… Read More
CFPB Proposes Delayed Effective Date of Prepaid Accounts Rule, Releases Short-Form Disclosure Guide
Posted in CFPB, Credit Cards, Regulatory DevelopmentsOn March 9, the CFPB announced in a blog post a proposal to delay the effective date of the final rule on prepaid accounts (Final Rule) for six months to April 1, 2018. The Bureau also released a guide for preparing the short-form disclosure required under the Final Rule. Read our client alert.
EVENT: Financing FinTech: Prepaid Accounts
Posted in Events, Regulatory DevelopmentsThursday, October 27, 2016 5:00 p.m. – 5:45 p.m. EDT Join us for one of our upcoming monthly telephone briefings led by members of our FinTech team: The CFPB announced final rules on October 5 concerning prepaid accounts under the Electronic Fund Transfer Act (Regulation E) and the Truth In Lending Act (Regulation Z). The… Read More
CFPB Finalizes Sweeping Prepaid Account Rule
Posted in CFPB, Credit Cards, Regulatory DevelopmentsOn October 5, 2016, the CFPB issued its long-awaited final rule to further regulate prepaid card products, or “prepaid accounts” (the “Final Rule” or “Rule”). This alert identifies key provisions of the Final Rule addressing scope, disclosures, error resolution and liability, and provisions regarding so-called “hybrid credit-prepaid cards.” The Rule generally takes effect on October… Read More
Senate Legislation to Regulate Small-Dollar Loans and Prepaid Cards
Posted in Payday Lending, Regulatory DevelopmentsOn April 7, 2016, Sen. Jeff Merkley (D-OR) introduced the “Stopping Abuse and Fraud in Electronic Lending Act of 2016,” or “SAFE Lending Act of 2016,” amending the Truth in Lending Act (“TILA”) and the Electronic Fund Transfer Act (“EFTA”) to include new limitations on small-dollar loans and prepaid cards. S. 2760 is cosponsored by… Read More
New Agency Guidance on Applying CIP Requirements to Prepaid Cardholders
Posted in Credit Cards, Regulatory DevelopmentsIn response to continuing concerns about the vulnerability of prepaid cards to criminal and terrorist abuse, five regulators issued interagency joint guidance on March 21 clarifying bank obligations to identify prepaid card accountholders under the existing regulations implementing the “Customer Identification Program” or “CIP” requirements of the USA PATRIOT Act. The Agencies intend the guidance… Read More
The CFPB Publishes Report on Prepaid Card Complaints
Posted in CFPBOn March 1, the CFPB published its monthly complaint report, this time focusing on complaints about prepaid products. The complaint report notes that, as of February 1, 2016, the CFPB has handled 811,700 complaints across all consumer financial products. Only 4,300, or merely 0.5 percent, of these complaints related to prepaid products. Moreover, while the… Read More
EVENT: ACI’s 14th National Forum on Prepaid Card Compliance
Posted in CFPB, Enforcement Actions, EventsThursday, January 28, 2016 8:05 a.m. – 9:20 a.m. Mandarin Oriental 1330 Maryland Avenue SW Washington, D.C. 20024 Morrison & Foerster partner Obrea Poindexter is speaking on the “An In-Depth Analysis of the CFPB’s Proposed Rule for Prepaid Cards, Assessment of What the Final Rule Will Look Like, and an Analysis of Recent CFPB Enforcement… Read More
Members of Congress Recommend Changes to the CFPB’s Proposed Prepaid Account Rule
Posted in CFPB, Credit Cards, Regulatory DevelopmentsEven though the comment period to the CFPB’s Notice of Proposed Rulemaking for Prepaid Accounts (the “Proposed Rule”) closed in March, 43 Members of Congress (42 Republicans and 1 Democrat) have sent a letter to Director Cordray with four recommendations for changing the Proposed Rule. The Congressional letter states that prepaid cards are “safe and… Read More
EVENT: An In-Depth Analysis of the CFPB’s Proposed Rule for Prepaid Cards, an Assessment of What the Final Rule Will Look Like, and an Analysis of Recent CFPB Enforcement Actions and Activities
Posted in CFPB, Enforcement Actions, EventsMorrison & Foerster associate Jeremy Mandell will speak on the “An In-Depth Analysis of the CFPB’s Proposed Rule for Prepaid Cards, an Assessment of What the Final Rule Will Look Like, and an Analysis of Recent CFPB Enforcement Actions and Activities” panel at the American Conference Institute’s Prepaid Card Compliance Forum in Chicago. Wednesday, September… Read More
OCC Takes a Page from the CFPB’s Playbook on Overdraft Programs
Posted in CFPB, Regulatory DevelopmentsOn February 11, 2015, the Office of the Comptroller of the Currency (OCC) issued an “updated” installment to the Comptroller’s Handbook in a new booklet entitled “Deposit-Related Consumer Credit.” In doing so, the OCC stole a page from the playbook used by the Consumer Financial Protection Bureau (CFPB) in its notice of proposed rulemaking on… Read More
Upcoming MoFo Teleconference: Sweeping CFPB Prepaid Card Proposal
Posted in CFPB, Events, Regulatory DevelopmentsObrea Poindexter, co-chair of the financial services practice group, along with Ryan Rogers and Jeremy Mandell, associates in the financial services practice group, will provide an overview of the CFPB’s recent prepaid card proposal on Tuesday, November 25, 2014, from 12:00 p.m. – 1:00 p.m. EST. The overview will cover the proposal’s extensive disclosures, modified… Read More