McWatters: Credit unions have until next April 1 to comply with prepaids rule
NCUA Acting Chairman J. Mark McWatters told federally-insured credit unions in a letter this week that compliance with the CFPB’s prepaid accounts rule will begin on April 1, 2018, in light of the bureau’s recent delay of the rule’s effective compliance date.
McWatters, in NCUA Letter to Credit Unions 17-CU-03, said institutions that issue prepaid financial products covered under the rule must still submit prepaid account agreements to the CFPB beginning Oct. 1, 2018.
The CFPB last week finalized its proposed six-month delay for its prepaid rule.
The prepaid rule creates a host of new requirements for prepaid accounts under Regulations E and Z. The rule was finalized in October 2016, originally leaving credit unions only a year to prepare. NAFCU had urged the bureau to both rescind the rule and reevaluate its economic impact on small financial institutions; or to delay the rule 18 months instead of six.
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