Wirecard to CFPB: Give us another year, make these changes
The prepaid card industry already succeeded in getting one delay for complying with new Consumer Financial Protection Bureau rules, and at least one top prepaid card issuer is now requesting additional rule-changes and an extra year to comply.
Wirecard North America is laying out its case this week to the CFPB, requesting a new compliance date for the new prepaid card rules to April 1, 2019, one year after the current date of April 1, 2018.
The original date the CFPB set for compliance with the new rule was Oct. 1, 2017, but after months of industry lobbying, the CFPB agreed to an extension to give prepaid card issuers more time to make adjustments to prepaid card packaging and to update legal disclosures.
Wirecard now wants further changes to the regulations and more time for issuers to comply, citing the CFPB’s own adjustments to its rule.
“Wirecard believes it will be difficult, if not impossible, to satisfy the new technical and logistical requirements in order to implement the final rule before the current April 1, 2018 deadline,” Brad Fauss, Germany-based Wirecard's vice president and general counsel for North America, wrote in a letter to the CFPB this week.
Fauss previously headed the prepaid card industry’s lobbying group, the Network Branded Prepaid Card Association before Wirecard hired him earlier this year.
Wirecard suggested further changes to the CFPB’s prepaid card rules, including exemption of non-reloadable cards not marketed to the general public and making sure the CFPB’s latest rules for resolving errors and liability protections don’t apply to transactions occurring before the prepaid cards are registered.
Wirecard also recommends the CFPB apply new exceptions for foreign language translation services to all types of prepaid accounts and not solely payroll and government benefit cards.