On January 31, 2017, the CFPB released its Prepaid Rule Small Entity Compliance Guide to facilitate comprehension of and the implementation of the new prepaid rule on October 1, 2017. As described in our prior Legal Update, the CFPB issued the final prepaid rule in October 2016 which amends Regulation E to cover prepaid accounts including payroll card accounts, government benefit accounts, and other types of prepaid products. The Compliance Guide details requirements of the new rule and provides examples to help illustrate key aspects including what constitutes a prepaid account, the entities subject to the new rule, disclosure obligations, and error resolution procedures, among others.
Just one day after the CFPB’s release of the Guide, Senator David Perdue (R-GA) introduced a joint resolution of disapproval aimed at wiping the prepaid rule off the books pursuant to the Congressional Review Act. Under the CRA, Congress may overturn new federal agency regulations by reviewing them within a certain time period, passing a joint resolution of disapproval in each chamber, and obtaining the president’s signature. On February 3, Representative Tom Graves (R-GA) followed suit, introducing a similar joint resolution in the House of Representatives. Stay tuned for updates on whether the prepaid rule’s future may truly be in jeopardy.