CFPB Prepaid Accounts Rule
United States1987PaymentsOverview
Key Obligations
- Provide short- and long-form fee disclosures before account acquisition
- Limit consumer liability for unauthorized transactions if reported promptly
- Investigate and resolve errors within specified timeframes
- Offer free access to account balances and transaction histories
- Disclose credit features clearly and comply with Reg Z if credit is offered
- Prohibit overdraft services unless consumers affirmatively opt-in
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Related Regulations
FAQ
What counts as a prepaid account under the CFPB rule?
General-use prepaid cards, digital wallets, and payroll or government benefit cards qualify.
Are neobanks subject to this rule?
Yes, if they offer consumer-facing prepaid accounts or wallets linked to stored funds.
What disclosures must be provided to consumers?
Both short-form (summary) and long-form (detailed) disclosures must be given pre-acquisition.
Does the rule limit fees?
It doesn’t cap fees but requires upfront disclosure and prohibits hidden charges.