Recent Regulatory Developments Applicable to Prepaid Cards
By TODD W. BEAUCHAMP & KEVIN P. ERWIN
Among recent developments, the CFPB has sought public comment on how best to implement consumer protection rules for GPR cards and has fined three banks for engaging in deceptive and misleading credit card marketing practices. It is also beginning to establish its supervisory authority over larger participants, which will soon include the prepaid card market. FinCENs Prepaid Access Rule has expanded the parties subject to the Bank Secrecy Act to include providers and sellers of prepaid access. Finally, the application of state escheatment laws to prepaid products remains a source of concern, as evidenced by recent events in New Jersey.