On June 15, the Consumer Financial Protection Bureau (CFPB) issued proposed amendments (the Proposal) to its final rule to expand existing consumer protections for electronic fund transfers to prepaid accounts, which was published in the Federal Register on Nov. 22, 2016 and amended on April 25, 2017 (Final Rule).1 The Proposal would modify the Final Rule to exempt prepaid account issuers from the error resolution and limitation of liability provisions with respect to unregistered cardholders. The Proposal also would provide more flexibility to issuers of digital wallet accounts that are covered by the Final Rule with respect to consumers linking credit card accounts to digital wallet accounts. The Proposal would make other amendments to the Final Rule as noted below.
Comments to the Proposal are due by August 14, 2017. The CFPB has specifically requested comment on whether a further delay of the Final Rule’s effective date would be appropriate in light of the proposed amendments.
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