Washington, D.C. (Oct. 6, 2016)—The Independent Community Bankers of America® (ICBA) today said it has serious concerns with the Consumer Financial Protection Bureau’s final rule on prepaid accounts, which will restrict consumers’ access to competitive prepaid accounts.
“The added regulatory burdens forced on community banks by the CFPB’s final rule will ultimately harm the consumers the rule is supposed to help,” ICBA President and CEO Camden R. Fine said. “ICBA will continue working with the CFPB to contain the damage of this new regulation.”
The CFPB’s final rule includes numerous new regulatory requirements and disclosure forms for prepaid accounts. The rule also includes new regulatory mandates on deposit accounts and overdraft services that will limit consumer choice and inhibit access to important financial products and services.
In a March 2015 comment letter, ICBA strongly opposed any Regulation Z coverage for overdraft services accessed through prepaid accounts. ICBA also urged the CFPB not to finalize more stringent overdraft requirements for prepaid accounts than currently are required for deposit accounts.
ICBA will continue working with the CFPB as community banks implement the final rule to minimize the negative impact on existing and future community bank customers.
The Independent Community Bankers of America®, the nation’s voice for nearly 6,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services.