Consumer Financial Protection Bureau Seeking Comments on Changes to Prepaid Rule
The proposal would change certain requirements and improve digital wallet flexibility
The Consumer Financial Protection Bureau (CFPB) wants your comments on proposed changes to its rule regarding prepaid cards.
The agency first issued the rule in 2016. It requires financial institutions to do the following: limit the losses to consumers when their money is stolen or their cards are lost, investigate and resolve errors, provide free and easy access to account information for users, and provide protections when credit is offered.
The proposed changes would adjust the requirements for fixing errors on unregistered accounts and provide more flexibility for users' credit cards when linked to a digital wallet.
"We know that effective implementation helps our rules deliver their intended value to consumers," said CFPB Director Richard Cordray. "Today's request for comment shows we are listening closely to feedback on our rules to decide whether certain adjustments will help to achieve that goal."
Under the proposed changes, users would have to register prepaid accounts in order to get full fraud and error protection benefits, such as the right to dispute charges. They would also make it easier for consumers to link traditional credit card accounts to digital wallet prepaid accounts while still receiving full protections.