CFPB issues rule on stimulus payments for prepaid accounts

Apr 14, 2020

The Consumer Financial Protection Bureau announced steps to make it easier for consumers to use prepaid accounts to receive pandemic-relief payments, including Economic Impact Payments.

The CFPB's interpretive rule concludes that, if certain conditions are met, certain pandemic-relief payments are not “government benefits” for purposes of Regulation E.

Thus, these payments are not subject to Electronic Fund Transfer Act provisions prohibiting government agencies from requiring consumers to establish accounts for receipt of electronic fund transfers with a particular financial institution as a condition of receipt of a government benefit.