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CFPB expects to postpone prepaid rule implementation

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CFPB expects to postpone prepaid rule implementation

The Consumer Financial Protection Bureau on Dec. 21 said it expects to issue its final amendments to its prepaid rule "soon after the new year."

The regulator added it will likely further postpone the rule's implementation date, after having already moved it to April 1, 2018, from Oct. 1, 2017. The CFPB's new acting director, Mick Mulvaney, had imposed a freeze on new regulations and is reviewing still-active investigations and reporting requirements, but the possibility of decreased oversight has received pushback from attorneys general and even President Donald Trump.

The rule would require financial institutions to provide credit card-like protections and account information for prepaid products, but Republicans on Capitol Hill warn that the additional compliance cost may stunt the growth of companies providing in-demand low-cost alternatives to banking services.