On March 1, the Consumer Financial Protection Bureau (CFPB) issued an issue spotlight highlighting concerns about prepaid card programs for accessing public assistance benefits. In particular, the spotlight notes “specific recurring issues” related to cash assistance benefits including Social Security, Temporary Assistance for Needy Families (TANF), and unemployment benefits that are provided on prepaid cards.
In a letter dated February 10, the American Bankers Association (ABA), Consumer Bankers Association (CBA), Credit Union National Association (CUNA), National Association of Federally‐Insured Credit Unions (NAFCU), and The Clearing House (TCH) (collectively, the Associations) vigorously requested that the Federal Reserve Board (Fed) extend the effective date for the final rule amending Regulation II (Final
In a case involving the application of Regulation E (Reg. E) to certain prepaid cards, the Consumer Financial Protection Bureau (CFPB) submitted an amicus brief arguing that the error resolution procedures in Reg. E apply to pandemic-related unemployment benefits that are issued via prepaid cards.
Reg. E, which implements the Electronic Fund Transfer Act (EFTA),