On January 31, 2017, the CFPB released its Prepaid Rule Small Entity Compliance Guide to facilitate comprehension of and the implementation of the new prepaid rule on October 1, 2017. As described in our prior Legal Update, the CFPB issued the final prepaid rule in October 2016 which amends Regulation E to cover prepaid accounts including payroll card accounts, government benefit accounts, and other types of prepaid products. The Compliance Guide details requirements of the new rule and provides examples to help illustrate key aspects including what constitutes a prepaid account, the entities subject to the new rule, disclosure obligations, and error resolution procedures, among others.
Just one day after the CFPB's release of the Guide, Senator David Perdue (R-GA) introduced a joint resolution of disapproval aimed at wiping the prepaid rule off the books pursuant to the Congressional Review Act. Under the CRA, Congress may overturn new federal agency regulations by reviewing them within a certain time period, passing a joint resolution of disapproval in each chamber, and obtaining the president's signature. On February 3, Representative Tom Graves (R-GA) followed suit, introducing a similar joint resolution in the House of Representatives. Stay tuned for updates on whether the prepaid rule's future may truly be in jeopardy.
Originally published on February 7, 2017
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2017. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.