CFPB’s New Rules on Prepaid Accounts Roil Industry

From: Morning Consult

Ryan Rainey

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The new rules contain three key elements: Public disclosure requirements aimed at improving consumers access to information about the products, a limit to the fees companies can charge if cards are lost or stolen, and credit protections that echo existing rules on the credit card industry. Firms will need to come into general compliance with the rules by October 2017, with some exceptions.

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The credit rules will require companies to vet whether a customer can pay back debt before they offer negative balance as part of the card. The firms will also have to provide monthly credit statements and establish a 21-day period for debt repayment before charging a late fee.

 

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