CFPB Proposes Sweeping New Regulation of the Prepaid Market
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- The CFPB proposed its comprehensive rulemaking on the prepaid market, which will bring a broadly defined group of prepaid accounts under the requirements of the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z).
- The proposed rule would require significant consumer disclosures, including standardized forms to facilitate consumer shopping.
- The proposed rule would also bring overdraft services and credit features associated with prepaid accounts under the requirements of Regulation E and Regulation Z and would impose limits on linking such credit features to prepaid accounts.