Members of Congress Recommend Changes to the CFPB’s Proposed Prepaid Account Rule

Even 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 effective,” pointing  to their use by the U.S. Department of Treasury for disbursing federal benefits. The letter states that the recommendations are intended to help maintain a “vibrant prepaid marketplace.” The four recommendations address the scope, implementation deadline, consumer disclosures and overdraft requirements of the Proposed Rule.

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