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Category Archives: Prepaid Cards

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Pew urges CFPB to finalize prepaid card rule

Posted in Prepaid Cards

In its new report containing its findings from a survey of prepaid card users, The Pew Charitable Trusts urges the CFPB’s “speedy adoption” of its proposed prepaid card rule.  The CFPB’s proposal, which would mandate new disclosures, error resolution procedures, consumer liability limits for unauthorized transactions, fee limits, and added requirements for cards with overdraft… More >

ABA comments on CFPB prepaid card proposal

Posted in Prepaid Cards

The American Bankers Association has submitted a 46-page comment letter on the CFPB’s proposed prepaid card rule. In the letter, the ABA makes the following key comments: Additional clarity is needed in the definition of the term “prepaid account” to avoid banks being subject to second-guessing by examiners and plaintiffs’ attorneys.  The ABA recommends that the… More >

Director Cordray appears before House Financial Services

Posted in CFPB Rulemaking, Hot Issues, Overdrafts, Payday Lending, Prepaid Cards, Richard Cordray, TILA / RESPA

On Tuesday, March 3, CFPB Director Richard Cordray appeared before the House Financial Services Committee to answer questions regarding the Bureau’s Semi-Annual Report to Congress and the President, which it published on December 4 of last year.  As we anticipated shortly before Director Cordray’s testimony, the report merely provided a backdrop for the hearing, which,… More >

CFPB encourages comments on prepaid card proposal

Posted in CFPB Rulemaking, Prepaid Cards

Kelly Cochran, CFPB Assistant Director for Regulations, addressed the CFPB’s prepaid card rulemaking in a January 12 presentation to the American Bar Association Consumer Financial Services Committee in New Orleans.  She acknowledged the complexity of the CFPB’s proposal and difficult choices facing the CFPB and encouraged the submission of comments on the proposal. We are largely… More >

Prepaid card proposal published

Posted in Prepaid Cards

With the publication of the CFPB’s proposed prepaid card rule in today’s Federal Register, the clock is now running on filing comments.  Comments must be filed on or before March 23, 2015.  The CFPB had issued the proposal on November 13.  As published in the Federal Register, the proposal is reduced from its original length… More >

CFPB announces pilot to promote consumer savings

Posted in Financial Literacy, Prepaid Cards

As part of its Project Catalyst, the CFPB’s initiative for facilitating innovation in consumer-friendly financial products and services, the CFPB has announced a new research pilot using insights from behavioral economics and an American Express trial program to evaluate the effectiveness of certain practices to encourage prepaid card users to develop regular saving behavior.  The CFPB hopes… More >

CFPB issues prepaid account study

Posted in Prepaid Cards

Simultaneously with the release of its 870-page prepaid account proposal last week, the CFPB issued a “Study of prepaid account agreements.”  On December 12, 2014, from 12 p.m. to 1 p.m. ET, Ballard Spahr attorneys will hold a webinar on the proposal.  A link to register is available here. To conduct the study, the CFPB… More >

CFPB “mystery” field hearing is no longer a mystery

Posted in Prepaid Cards

On October 30, Barbara Mishkin reported that the CFPB scheduled a field hearing in Wilmington, Delaware on November 13. Barbara speculated at that time that the field hearing would be the occasion for the CFPB to unveil its long-awaited proposed regulation pertaining to prepaid cards. The CFPB has updated its announcement to state that the… More >

CFPB announces November 13 “mystery” field hearing

Posted in Prepaid Cards

Departing from its past practice, the CFPB has announced that it will hold a field hearing in Wilmington, Delaware on November 13 but has not yet disclosed what the hearing will be about.  Instead, the announcement says only that “[m]ore information about the event will follow.”  It also contains the standard statement that the event… More >

CFPB confirms plans for auto finance larger participant rule in rulemaking agenda

Posted in Auto Finance, CFPB Rulemaking, Debt Collection, Deposit Advance Loans, Payday Lending, Prepaid Cards

In the latest semi-annual update of its rulemaking agenda, the CFPB officially confirmed that it plans to propose a rule to define “larger participants of a market for auto lending.”  The official confirmation follows statements made by Steven Antonakes at a Consumer Bankers Association meeting in April 2014 that the CFPB’s next larger participant rule… More >

Elizabeth Warren and other congressional members urge rulemaking by the Department of Education re: regulating college/bank partnerships for debit/prepaid cards for student aid disbursement

Posted in Debit Cards, Prepaid Cards, Student Loans

On April 22nd, Senator Warren, nine other Senators, and 14 members of Congress sent a letter (the “Letter”) to Secretary of Education Duncan urging that the Department of Education (DOE) exercise its rulemaking authority to regulate, limit or outright ban certain practices when colleges enter into agreements with financial providers to offer debit cards, prepaid… More >

CFPB testing prepaid card disclosures

Posted in Prepaid Cards

Yesterday, the CFPB unveiled two model forms of prepaid card packaging disclosures that it is testing with consumers in Los Angeles.  According to its blog post, the CFPB is developing the disclosures in connection with a proposed prepaid card rule it expects to issue this spring.  The LA testing follows a first round of testing that… More >

Director Cordray gives prepaid card advice to state regulators

Posted in Prepaid Cards

Director Cordray’s speech yesterday to the National Association of State Treasurers consisted primarily of his standard remarks about the CFPB’s handling of consumer complaints, financial education initiatives, and mortgage reforms.  However, he did make some noteworthy comments on prepaid cards offered by states and local governments for wages and other government payments.  Noting that federal law requires… More >

Scrutiny of campus financial products grows

Posted in Debit Cards, Prepaid Cards

The U.S. Government Accountability Office (GAO) has joined the CFPB’s call for more transparency in the area of campus financial products.  Last week, the GAO issued a report on college debit cards in which the GAO recommended that Congress consider requiring financial institutions that provide debit and prepaid card services to colleges to publicly disclose… More >

Senator Warner introduces prepaid card bill

Posted in Prepaid Cards

Despite the CFPB’s plans to issue a proposed regulation concerning prepaid cards this spring, Senator Mark Warner has introduced a bill (S. 1903 ) that would require new disclosures for prepaid cards.  The bill, entitled the “Prepaid Card Disclosure Act of 2014,” would amend the Electronic Fund Transfer Act to require any person that offers certain… More >

CFPB calls for public disclosure of campus financial product marketing agreements

Posted in Credit Cards, Debit Cards, Deposit Accounts, Prepaid Cards

The CFPB wants financial institutions to post on their websites their marketing agreements with colleges and universities for financial products other than credit cards, such as deposit accounts, prepaid cards and financial aid disbursement accounts.  Pursuant to the CARD Act, card issuers must submit their campus credit card agreements annually to the CFPB together with… More >

CFPB findings on campus banking products portend new limitations

Posted in Debit Cards, Deposit Accounts, Prepaid Cards, Student Loans

Findings on campus banking products released this past Monday by the CFPB in conjunction with a Banking on Campus Forum held in Washington, D.C. appear to be a harbinger of new limitations on the marketing of these products.  The findings were based on comments the CFPB received in response to a January 2013 notice seeking input on… More >

Director Cordray comments on effective date of mortgage rules, prepaid card rule and new Deputy Director

Posted in CFPB People, Mortgages, Prepaid Cards

CFPB Director Richard Cordray was among the federal financial regulators who attended a closed door meeting yesterday with President Obama.  Other regulators attending the meeting included the Chairs of the Fed, FDIC and SEC.  At the meeting, President Obama was expected to urge the regulators to complete Dodd-Frank rulemaking.  The Dodd-Frank rulemaking still on the… More >

ABA seeks broad CFPB preemption ruling

Posted in Preemption, Prepaid Cards

In August, the CFPB issued a notice seeking public comment on its plans to determine whether certain provisions of Maine and Tennessee laws relating to unclaimed gift cards are preempted by federal law on gift card expiration dates.  We were pleased to see that the CFPB had invited public input and, in response to that… More >

CFPB to make first preemption determinations

Posted in Preemption, Prepaid Cards

The CFPB intends to determine whether certain provisions of Maine and Tennessee laws relating to unclaimed gift cards are preempted by federal law on gift card expiration dates.  The CFPB’s rulings will represent the agency’s first preemption determinations.  According to the CFPB’s “notice of intent to make preemption determination” submitted for publication in the Federal… More >

Prepaid card rule on back burner?

Posted in Prepaid Cards

Stephen Shinn, a staff lawyer at the CFPB, spoke Saturday morning at the ABA Annual Meeting in Chicago about the status of the Advance Notice of Proposed Rulemaking regarding general purpose reloadable prepaid cards. He reported that the Bureau received 230 comment letters. He indicated that if the Bureau decides to issue a  proposed rule,… More >

FTC staff comments on extending Reg E to prepaid cards

Posted in CFPB Rulemaking, Prepaid Cards

The staff of the FTC’s Bureau of Consumer Protection has weighed in on the CFPB’s Advance Notice of Proposed Rulemaking seeking information on extending Regulation E requirements to general purpose reloadable prepaid cards or GPR cards. While the staff’s letter notes that the FTC voted to authorize the staff to submit a comment letter, it… More >

Consumer groups advocate banning overdraft fees and short-term, small-dollar loan features for prepaid cards

Posted in CFPB Rulemaking, Prepaid Cards

Last week, a coalition of 26 consumer groups, civil rights advocates, and community organizations submitted comments to the CFPB urging it to issue regulations banning overdraft fees and short-term, small-dollar loan features on prepaid cards. Among those groups submitting comments were the National Consumer Law Center, the Consumer Federation of America, and the Center for… More >