Breaking News: CFPB Issues NPRM, Proposed Prepaid Disclosures before Today’s Meeting
The CFPB today is proposing consumer protections for the prepaid market, which include requirements of prepaid companies to limit consumers’ losses when cards are stolen or lost, to investigate and resolve errors, provide convenient and free access to account information, and to adhere to credit card protections if a credit product is offered in connection with a prepaid account. The bureau released its long-awaited Notice of Proposed Rulemaking for prepaid accounts, which includes prepaid accounts that are cards, codes or other devices capable of being loaded with funds and usable at unaffiliated merchants or for person-to-person transfers, and are not gift cards. The CFPB also has issued proposed “Know Before You Owe” prepaid disclosures, which it says are designed to provide consumers upfront, clear information about the costs and risks of prepaid products.
The CFPB is holding a field hearing on prepaid cards this morning at 11 a.m. EST, Thursday, in the conference center at Delaware Technical Community College, 333 N. Shipley Street, Wilmington, Del. Click here to watch today’s field hearing on prepaid accounts. Paybefore CEO Marilyn Bochicchio also will be in attendance tweeting about the hearing.
