On March 7, 2018 the FDIC ordered the Bancorp Bank to pay a penalty and to reimburse consumers for overcharges on prepaid cards. The Order requires Bancorp Bank to pay a $2 million civil money penalty and to make approximately $1.3 million in restitution payments to about 243,000 consumers harmed by unfair and deceptive acts and practices involving the assessing of transaction fees greater than those disclosed by the bank. The FDIC also found that […]
Category: Prepaid Cards
EFFECTIVE DATE OF PREPAID ACCOUNT RULE DELAYED
On April 20, 2017, the Consumer Financial Protection Bureau (CFPB) issued a final rule which delays the effective date of the Prepaid Accounts Rule under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z) for six months, until April 1, 2018. The CFPB issued the Prepaid Account Rule on October 6, 2016 with an effective date of October 1, 2017. On March 16, 2017, the CFPB proposed delaying the […]
PREPAID RULE TAKES A MUCH NEEDED PAUSE
On October 3, 2016, the CFPB issued its 1,689 page Final Rule on Prepaid Accounts which was to primarily become effective on October 1, 2017. Surprisingly, the CFPB announced in a release last week, on March 9, 2017, that it was proposing to delay the implementation date for the rule until April 1, 2018. The CFPB is giving some love to the Deposit Compliance side of the bank much like it did with TRID on […]
PREPAID ACCOUNTS JUST GOT KICKED UP TO THE CONSUMER PROTECTION SUITE
On October 3, 2016 the CFPB issued its final rule for general purpose prepaid accounts which will generally go into effect on October 1, 2017. This culminated a 4+ year wait since the CFPB announced its initial intention to regulate prepaid accounts and 2 years from its proposal. The CFPB’s initial 870 page ANPR has morphed into a 1,689-page final rule so it’s easy to determine that numerous products and requirements were added on that […]