Agency Seeks Changes To Payroll Debit Card Rules

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A proposal to amend Regulation E, which implements the Electronic Fund Transfer Act, and Regulation Z, which implements the Truth in Lending Act was issued by the Consumer Financial Protection Bureau in the June 29 Federal Register ( 82 FR 29630 ). The proposed rule change also would amend official interpretations to those regulations.

This proposal relates to a final rule regarding prepaid accounts under Regulations E and Z, the notice said.

The proposal requested comments on potential modifications to several aspects of that rule, including error resolution and limitations on liability for prepaid accounts where the financial institution has not completed its consumer identification and verification process and application of the rule's credit-related provisions to digital wallets that are capable of storing funds, the notice said.

Financial institutions “would not be required to resolve errors or limit consumers' liability on unverified prepaid accounts. However, for accounts where the consumer's identity is later verified, financial institutions would be required to limit liability and resolve errors with regard to disputed transactions that occurred prior to verification,” the notice said.

The prepaid accounts final rule (RIN 3170-AA22) was amended April 25 to delay the effective date for many provisions to April 1, 2018, from Oct. 1, 2017.

A proposal requesting comments on possible changes to a final rule on payroll debit cards and whether the rule's effective date should be delayed was issued June 15 by the Consumer Financial Protection Bureau. The proposal (RIN 3170-AA72) addressed a final rule that expanded federal consumer protections available to users of prepaid products, including payroll cards.

To contact the reporter on this story: Keith M. Hill at To contact the editor on this story: Michael Baer at

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