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CFPB Proposes Strong Federal Protections for Prepaid Products

CFPB Proposes Strong Federal Protections for Prepaid Products

With its proposed rule to create better protections for users of prepaid access, the CFPB is not only flexing its regulatory muscle. It is expanding its reach to create federal uniformity in an area sporadically and unevenly controlled by state regulations. This is likely a prelude to expansion into other areas of non-bank services that equally lack uniformity from state to state. Entities that provide these services would be wise to pay close attention to the CFPB and apply effective controls. They should also anticipate greater CFPB participation in their daily activities. ————————————————————————————————————————- FOR IMMEDIATE RELEASE: November 13, 2014 CONTACT: Office of Communications Tel: (202) 435-7170 CONSUMER FINANCIAL PROTECTION BUREAU PROPOSES STRONG FEDERAL PROTECTIONS FOR PREPAID PRODUCTS  Bureau’s Proposal Includes New ‘Know Before You Owe’ Prepaid Disclosures   WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) is proposing strong, new federal consumer protections for the prepaid market. The proposal would require prepaid companies to limit consumers’ losses when funds are stolen or cards are lost, investigate and resolve errors, provide easy and free access to account information, and adhere to credit card protections if a credit product is offered in connection with a prepaid account. The Bureau is also proposing new “Know Before You Owe” prepaid disclosures that would provide consumers with clear information about the costs and risks of prepaid products upfront. “Consumers are increasingly relying on prepaid products to make purchases and access funds, but they are not guaranteed the same protections or disclosures as traditional bank accounts,” said CFPB Director Richard Cordray. “Our proposal would close the loopholes in this market and ensure prepaid consumers are...
FinCEN Statement on Providing Banking Services to Money Services Businesses

FinCEN Statement on Providing Banking Services to Money Services Businesses

FinCEN believes it is important to reiterate the fact that banking organizations can serve the MSB industry while meeting their Bank Secrecy Act obligations.  Currently, there is concern that banks are indiscriminately terminating the accounts of all MSBs, or refusing to open accounts for any MSBs, thereby eliminating them as a category of customers. Please click on the link below to read the entire FinCen Statement: FInCEN Statement on MSB Bank Account Closing NOV 10...
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