Letters to Credit Unions No.: 17-CU-03
Prepaid Rule Implementation Delay
August 2017

NCUA has issued LTCU 17-CU-03 to alert credit unions to the CFPB’s delay of the effective date for its final prepaid rule. The CFPN final rule delays the effective compliance date from October 1, 2017 to April 1, 2018. Issuers of prepaid financial products covered under the rule must still submit prepaid account agreements to CFPB starting October 1, 2018.

The Prepaid Card rule may be read here.

In issuing the effective date delay, the CFPB noted that it intended to issued requests for comments on at least 2 provisions of the final prepaid rule and may further delay the effective date based on comment received.

In general, CFPB’s Prepaid Card rule:

  • Extends to prepaid cards the same basic protection from fraud, unauthorized charges and errors that debit cards receive. 
  • Require consumers receive a simple fee chart so they can avoid hidden fees
  • Require consumers have access to basic account information free
  • Give employees the choice to reject receiving payroll on a prepaid card
  • Mandate a 30-day waiting period for the addition of ODP on hybrid prepaid products

Questions about the prepaid rule may be directed to NCUA’s Office of Consumer Financial Protection and Access at ComplianceMail@ncua.gov or 703-518-1140

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