ETA Signs Joint Trade Comment Letter to CFPB

March 23, 2015

The Electronic Transactions Association,  American Bankers Association, Consumer Bankers Association, Credit Union National Association, and Financial Services Roundtable, National Association of Federal Credit Unions, Online Lenders Alliance today filed joint comments to the Consumer Financial Protection Bureau (CFPB), addressing the CFPB’s proposed rules impact on the prepaid market. The Associations noted that the proposed rules includes provisions that have the potential to increase the cost of prepaid accounts for consumers, limit consumer access to prepaids, and stifle the development of new and innovative products and services.

The comment letter notes that the CFPB miscategorizes innovative products such as mobile wallets, peer-to-peer payments and digital currencies like Bitcoin under the “prepaid” umbrella. These products, still under development and with the potential to revolutionize and add real value to the financial services industry, are not prepaid nor are they used by consumers in a way analogous to prepaid.  The Associations believe consumers will be best served and protected by a narrowly defined rule that provides appropriate protections while allowing for innovations beneficial to the consumer.  In addition to the joint comment letter, each trade filed comments individually.

Please click here to read the joint trade comment letter to the CFPB.