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01/28/2018

CFPB Delays Prepaid Card Rule Implementation For A Year

PYMNTS.com

The Consumer Financial Protection Bureau (CFPB) has extended the effective date on its 2016 prepaid card rule, among other modifications announced today (Jan. 25).

The rule, initially passed, also modified requirements for the prepaid card industry in regards to official procedure on lost or stolen cards, error resolution and investigation, fee disclosures, access to account information and overdraft features, if offered in conjunction with prepaid accounts.

The changes, apart from rolling back the effective date, also adjust requirements for resolving errors on unregistered accounts and modify stipulations for cards linked to digital wallets.

Prepaid card accounts are among the faster-growing, consumer-facing financial products; according to expert estimates, the industry has grown from a net value of around $1 billion in 2003 to nearly $65 billion as of 2012. By 2020, analysts forecast that $116 billion per year will be loaded onto prepaid cards.

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