Page 50 - Pay Magazine

Government watch
Viewpoint
By Eli Rosenberg, Baird Holm LLP
By Gray Derrick, Baird Holm LLP
In Viewpoints, payments professionals share their perspectives on the industry. Paybefore’s goal is to present many points of view to
o er readers new insights and information.
The opinions expressed in Viewpoints are not necessarily those of Paybefore. This article is intended for general information purposes
only and should not be construed as legal advice. Readers are urged not to act upon the information without rst consulting an attorney.
After nearly two years, thou- sands of comment letters, numerous industry meet- ings and countless hours of speculation, on Oct. 5, 2016, the CFPB released its highly anticipated nal rule governing prepaid ac- counts. The nal rule and its com- mentary come in at nearly 1,700 pages and total more than 500,000 words. Still, despite its size, the attribute of the nal rule most noted by industry participants is how little it changed from the CFPB’s pro- posed rule, which was released in November 2014.
With the CFPB proposing a six- month delay for the e ective date and signaling that it’s open to
making adjustments, it’s worth the industry’s time to take another look at the rule, its implications and outstanding issues. (Editor’s Note: At press time, three resolutions had been introduced in the Senate and House to repeal the rule using the Congressional Review Act.)
In particular, industry participants have pointed out that the nal rule maintains the proposed rule’s general structure and coverage. For instance, like the proposed rule, the nal rule greatly broadens the common understanding of what constitutes a prepaid account, pulling in companies like PayPal and other digital wallet providers. The nal rule also maintains the
The CFPB’s Prepaid Rule:
PosiTive ChAnges & ComPliAnCe ChAllenges
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