The CFPB Will Delay Implementation Of New Prepaid Card Rule

The CFPB has released its updated regulatory agenda for 2018 — and it looks like the prepaid card final rule passed earlier this year will not be on it.

The consumer watchdog — now under new leadership — formally announced that it will be  delaying implementation of a 2016 regulation governing prepaid accounts, on the grounds that it needs more time to study the rule before it can be implemented.

The announcement isn’t a total surprise, as interim director Mick Mulvaney made it clear earlier this month that his intention is to slow down rulemaking at the federal regulator’s rulemaking apparatus.

“We put a hold on all new rules, new rulemaking and regulatory promulgation until I get a chance to look at them on a case-by-case basis … So I think you can expect the rulemaking to stop for a while,” Mulvaney noted in a December 4 meeting.

The CFPB further noted that comments it received regarding the rule indicated a need to delay its implementation — and that the time would be used to revise the rule.

“The Bureau proposed making changes to the prepaid rule in June; the comment period on the proposal ended in August, and the record is now closed for public input,” it said. “As part of that process, the Bureau expects, based on its review of the comments received, to further extend the effective date of the 2016 rule to allow additional time for implementation of the final rule,” the CFPB announced.

CFPB officials say they will be able to issue a finalized version of the new rule “after the new year” though when exactly that might occur remains a bit up in the air.  The regulator – long a thorn in the side of republican lawmakers – has recently come under the control of the Trump administration with Mulvaney, following the departure of Richard Cordray.



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