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CFPB offers more time for rely on prepaid accounts). "Innovation in prepaid products
and services address the financial needs of our nation's
prepaid compliance most vulnerable, and the CFPB's rule will limit consumer
access to such tools," said Scott Talbott, the ETA's Senior
Vice President for Government Affairs.

he Consumer Financial Protection Bureau is Lawmakers on both sides of the political aisle have
considering an extension of the effective date introduced congressional resolutions that would deep-six
for new consumer protection rules covering the pending rule. The action results from a 1980s-era law
T prepaid debit card accounts. The controversial that allows Congress to override federal agency rulemaking
rules – which some in Congress have threatened to roll with majority votes in the House and Senate, along with
back legislatively – are set to take effect Oct. 1, 2017. But in presidential approval.
a request for comment issued on March 9, the CFPB offered
to extend the deadline for compliance to April 1, 2018. Changes in the works?

The CFPB said in a statement the proposed deadline In its March 9 statement, the CFPB said it has no plans
extension was prompted by pleas from prepaid card to change the controversial prepaid account rule. In an
companies that were having problems making necessary apparent nod to its detractors, however, the consumer
changes to systems, processes and forms in time for the watchdog agency did request comments on "any
new rules. In a blog post on the CFPB's latest action, the implementation challenges" posed by the new rules. "If
law firm Ballard Spahr LLP noted that several prepaid we determine that any substantive changes to the prepaid
companies were especially challenged by requirements accounts rule are necessary and appropriate, we will issue
that they "pull and replace" noncompliant card packaging a separate proposal and provide the public an opportunity
from retail locations by October 1. to comment on those changes before finalizing," the bureau
stated.
"We believe that delaying the effective date by six months
will be sufficient for industry participants to ensure they Alan Kaplinsky, Partner at Ballard Spahr and leader of
can comply with the rule," the bureau said in a statement. the firm's consumer financial services group, suggested
changes could be in the offing if prepaid companies
Diverging views can make a case for them. At a January 2017 American
Bar Association meeting to discuss consumer financial
Not everyone agrees. "Although the proposal to delay the services, CFPB officials left open the door to future changes
prepaid accounts rule is a move in the right direction, in response to problems or issues that arise as a result of its
NAFCU has stressed to the CFPB on several occasions that implementation, Kaplinsky noted in a recent blog post.
they should have adopted an extended implementation
timeline from the outset," Carrie Hunt, Executive Vice
at the National Association of Federally-Insured Credit SEAA 2017 energizes base
President of Government Affairs and General Counsel
Unions, wrote in response to the proposed extension.
pproximately 650 attendees joined 100 exhibi-
The pending CFPB prepaid rule creates new consumer tors at Le Meridien Hotel in Charlotte, N.C.,
protections under federal Regulations E (EFT) and Z May 10 to 12, 2017, for the 17th annual Southeast
(truth-in-lending) for an array of prepaid debit accounts – A Acquirers Association's conference. The grow-
from reloadable cards that are sold through retailers and ing mid-Atlantic city, home to NASCAR and nicknamed
financial institutions to mobile wallets. They have been the "International Gateway to the South," provided a fit-
panned by many affected parties and lawmakers. ting backdrop for the not-for-profit regional association's
eclectic mix of keynote addresses, educational sessions and
However, at least one leading prepaid company, Green networking events. Established in 2000, the SEAA has pro-
Dot Corp., has gone on record in support of the rule. Steve vided education, training and networking to the industry's
Streit, Green Dot's founder and Chief Executive Officer, feet on the street and other key players in the acquiring
noted in a 2016 statement that the rule mirrors closely community.
existing Green Dot practices related to prepaid accounts.
"It's gratifying to know that prepaid can now move to a "We exhibited at SEAA and it was a full house," said Barry
level playing field that can better serve consumers while Davis, Vice President of Business Development at Womply.
allowing the entire industry to move past the period of "We had a constant stream of people at our booth and found
regulatory uncertainty," he said. it to be a well-attended show with a diversified agenda."
Test Track 17
The Electronic Transactions Association described the
CFPB's prepaid account rule as "regulatory overreach." It Davis represented Womply in a breakout session and Test-
stated the rule will most negatively impact the financially Track2017, a NASCAR-themed competition for technology
underserved (unbanked and underbanked Americans who startups. Each finalist had 8 minutes to present his or her

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