82 FR 13782 - Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z); Delay of Effective Date
BUREAU OF CONSUMER FINANCIAL PROTECTION Federal Register Volume 82, Issue 49 (March 15, 2017)
Federal Register Volume 82, Issue 49 (March 15, 2017)
| Page Range | 13782-13785 | |
| FR Document | 2017-05060 |
[Federal Register Volume 82, Number 49 (Wednesday, March 15, 2017)] [Proposed Rules] [Pages 13782-13785] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-05060] [[Page 13782]] ======================================================================= ----------------------------------------------------------------------- BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Parts 1005 and 1026 [Docket No. CFPB-2017-0008] RIN 3170-AA69 Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z); Delay of Effective Date AGENCY: Bureau of Consumer Financial Protection. ACTION: Proposed rule with request for public comment. ----------------------------------------------------------------------- SUMMARY: The Bureau of Consumer Financial Protection (Bureau or CFPB) is proposing to delay the October 1, 2017 effective date of the rule governing Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z) by six months, to April 1, 2018. DATES: Comments must be received on or before April 5, 2017. ADDRESSES: You may submit comments, identified by Docket No. CFPB-2017- 0008 or RIN 3170-AA69, by any of the following methods:Email: [email protected]. Include Docket No. CFPB-2017-0008 or RIN 3170-AA69 in the subject line of the email. Electronic: http://www.regulations.gov. Follow the instructions for submitting comments. Mail: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552. Hand Delivery/Courier: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1275 First Street NE., Washington, DC 20002. Instructions: All submissions should include the agency name and docket number or Regulatory Information Number (RIN) for this rulemaking. Because paper mail in the Washington, DC area and at the Bureau is subject to delay, commenters are encouraged to submit comments electronically. In general, all comments received will be posted without change to http://www.regulations.gov. In addition, comments will be available for public inspection and copying at 1275 First Street NE., Washington, DC 20002, on official business days between the hours of 10 a.m. and 5 p.m. Eastern Time. You can make an appointment to inspect the documents by telephoning (202) 435-7275. All comments, including attachments and other supporting materials, will become part of the public record and subject to public disclosure. Sensitive personal information, such as account numbers or Social Security numbers, should not be included. Comments will not be edited to remove any identifying or contact information. FOR FURTHER INFORMATION CONTACT: Thomas L. Devlin or Yaritza Velez, Counsels, or Kristine M. Andreassen, Senior Counsel, Office of Regulations, at (202) 435-7700. SUPPLEMENTARY INFORMATION: I. Summary of the Proposed Rule On October 5, 2016, the Bureau released a final rule to create comprehensive consumer protections for prepaid accounts under Regulation E, which implements the Electronic Fund Transfer Act (EFTA), and Regulation Z, which implements the Truth in Lending Act (TILA) (Prepaid Accounts Final Rule).\1\ The Prepaid Accounts Final Rule has an effective date of October 1, 2017. Through its efforts to support industry implementation of the Prepaid Accounts Final Rule, the Bureau has learned that some industry participants believe they will have difficulty complying with certain provisions of the Prepaid Accounts Final Rule that go into effect October 1, 2017. In order to facilitate compliance with the Prepaid Accounts Final Rule, and to allow an opportunity for the Bureau to assess whether any additional adjustments to the Rule are appropriate, the Bureau is proposing to extend the effective date of the Prepaid Accounts Final Rule by six months, to April 1, 2018. The Bureau believes that such an extension would, among other things, help industry participants address certain packaging- related logistical issues for prepaid accounts that are sold at retail locations. --------------------------------------------------------------------------- \1\ 81 FR 83934 (Nov. 22, 2016). --------------------------------------------------------------------------- This proposed rule seeks comment on whether the Bureau should extend the effective date of the Prepaid Accounts Final Rule, and if so, whether six months is an appropriate length of time for such an extension. The Bureau is also proposing to make conforming amendments to certain regulatory text and commentary adopted in the Prepaid Accounts Final Rule to reflect the proposed effective date delay. II. Background A. The Prepaid Accounts Rulemaking In the Prepaid Accounts Final Rule, the Bureau extended Regulation E coverage to prepaid accounts and adopted provisions specific to such accounts, and generally expanded Regulation Z's coverage to overdraft credit features that may be offered in conjunction with prepaid accounts.\2\ The Bureau released a proposal regarding prepaid accounts under Regulations E and Z, including model and sample disclosure forms, for public comment on November 13, 2014,\3\ and released the Prepaid Accounts Final Rule on October 5, 2016. --------------------------------------------------------------------------- \2\ 81 FR 83934 (Nov. 22, 2016). \3\ 79 FR 77102 (Dec. 23, 2014) (Prepaid Accounts NPRM). See also Press Release, CFPB, CFPB Proposes Strong Federal Protections for Prepaid Products (Nov. 13, 2014), available at https://www.consumerfinance.gov/about-us/newsroom/cfpb-proposes-strong-federal-protections-for-prepaid-products/. The Bureau had previously issued an advance notice of proposed rulemaking that posed a series of questions for public comment about how the Bureau might consider regulating general purpose reloadable cards and other prepaid products. 77 FR 30923 (May 24, 2012). --------------------------------------------------------------------------- Upon issuing the Prepaid Accounts Final Rule, the Bureau initiated robust efforts to support industry implementation.\4\ Information regarding the Bureau's Prepaid Accounts Final Rule implementation initiatives and available resources can be found on the Bureau's regulatory implementation Web site at https://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/prepaid-rule/. --------------------------------------------------------------------------- \4\ These on-going efforts include: (1) The publication of a plain-language small entity compliance guide to help industry understand the Prepaid Accounts Final Rule; (2) the publication of various other implementation tools regarding the Prepaid Accounts Final Rule, including an executive summary of the rule, summaries of key changes for payroll card accounts and government benefit accounts, a prepaid account coverage chart, and a summary of the rule's effective date provisions; (3) the release of native design files for print and source code for web-based disclosures for all of the model and sample disclosure forms included in the Prepaid Accounts Final Rule; (4) meetings with industry, including trade associations and individual industry participants, to discuss and support their implementation efforts; and (5) participation in conferences and forums. --------------------------------------------------------------------------- B. Proposed Effective Date As published, the Prepaid Accounts Final Rule has a general effective date of October 1, 2017. As part of its efforts to support industry implementation, the Bureau has discussed implementation efforts with a number of industry participants. As a result of those discussions, the Bureau has learned that some industry participants are concerned that they will have difficulty in complying with the Prepaid Accounts Final Rule while also ensuring continued availability of their prepaid products and with minimal disruption to consumers by October 1, 2017 for a variety of reasons. For example, the Bureau put in place an exception in Regulation E Sec. 1005.18(h)(2) pursuant to which financial institutions are not [[Page 13783]] required to pull and replace prepaid account access devices and packaging materials with non-compliant disclosures that were produced in the normal course of business prior to October 1, 2017. Nonetheless, the Bureau understands that because of concerns about legal and regulatory exposure at both the Federal and State level due to potential product changes, and in particular due to developments following release of the Prepaid Accounts Final Rule, some industry participants believe that they should in fact pull and replace non- compliant packaging. Industry has also raised related concerns regarding the production capacity of packaging manufacturers and other supply chain limitations leading up to the October 1, 2017 effective date due to increased demand by industry on a limited number of manufacturers. In addition, in the course of working to implement the Prepaid Accounts Final Rule, some industry participants have raised concerns about what they describe as unanticipated complexities arising from the interaction of certain aspects of the rule with certain business models and practices (including recent changes thereto) that they did not fully address in their comment letters on the Prepaid Accounts NPRM, which may lead to additional complexities for implementation and negative implications for consumers. The Bureau continues to believe that the Prepaid Accounts Final Rule will provide significant benefits to consumers and that, therefore, expeditious implementation remains essential to provide comprehensive consumer protections to users of prepaid accounts. The Bureau also appreciates the concerns raised by some industry participants that they may have difficulty in complying with the rule by October 1, 2017. Accordingly, for the reasons stated herein, the Bureau is proposing to delay the effective date of the Prepaid Accounts Final Rule for a period of six months, to April 1, 2018. In order to effect this change, the Bureau is also proposing to amend Regulation E Sec. Sec. 1005.18(b)(2)(ix) and (h), and 1005.19(f)(1), and related commentary, to reflect the delayed effective date. Furthermore, delaying the effective date will allow the Bureau to more closely evaluate concerns raised by industry participants regarding certain substantive aspects of the Prepaid Accounts Final Rule that they assert are posing particular complexities for implementation or may have negative consequences for consumers that were not anticipated or fully explained by commenters in response to the Prepaid Accounts NPRM, and to propose revisions to those provisions of the Prepaid Accounts Final Rule if it determines that amendments are necessary and appropriate. The Bureau believes that, based on its initial outreach to industry, a six-month delay would be sufficient for industry participants to ensure that they can comply with the Prepaid Accounts Final Rule with minimal disruption to consumers. In particular, a six- month extension would both allow more time for package printing and allow pull-and-replace processes at retail locations to occur after the winter holiday season, which is a particularly busy time for retailers. Indeed, the Bureau understands that industry often effectuates pull- and-replace processes in the spring for precisely this reason. The Bureau also believes that a six-month delay will allow the Bureau adequate opportunity to consider possible additional amendments to the Prepaid Accounts Final Rule, and for industry to implement any such changes, without unnecessary disruption to consumers' access to, and use of, prepaid accounts. The Bureau solicits comment on whether it should delay the effective date for the Prepaid Accounts Final Rule, and if so, whether six months is an appropriate length of time. The Bureau also solicits comment on the potential consequences of not extending the effective date. In particular, the Bureau asks commenters to provide specific detail and any available data regarding current and planned practices, as well as relevant knowledge and specific facts about any benefits, costs, or other impacts of this proposal on industry, consumers, and other stakeholders. Finally, the Bureau solicits comment about the impact of the proposed delay on consumers who use prepaid accounts. The Bureau is not proposing to delay the effective date of the requirement to submit prepaid account agreements to the Bureau in Regulation E Sec. 1005.19(f)(2), which is October 1, 2018. The Bureau expects to have its agreement submission process in place by October 1, 2018, and the Bureau's outreach has not indicated that industry participants are concerned that they will not be able to meet the agreement submission effective date. The Bureau nonetheless solicits comment on whether it should delay the effective date of the agreement submission requirement, and if so, for what length of time. The Bureau is not proposing to amend any substantive requirements of the Prepaid Accounts Final Rule at this time. The purpose of this notice is not to seek comment generally on policy decisions made in the Prepaid Accounts Final Rule that industry or other stakeholders might wish the Bureau to reconsider. The Bureau will continue its outreach to industry and other stakeholders to understand their experiences in implementing the Prepaid Accounts Final Rule. If the Bureau determines that amendments to the substantive provisions of the Prepaid Accounts Final Rule are warranted, it will do so through a separate rulemaking. III. Legal Authority The Bureau is proposing to exercise its rulemaking authority pursuant to EFTA section 904(a) and (c), Dodd-Frank Act sections 1022(b)(1) and 1032(a), and TILA section 105(a) to delay the effective date of the Prepaid Accounts Final Rule. The legal authority for the Prepaid Accounts Final Rule is described in detail in the Prepaid Accounts Final Rule's Supplementary Information.\5\ As amended by the Dodd-Frank Act, EFTA section 904(a) and (c) \6\ authorizes the Bureau to prescribe regulations to carry out the purposes of EFTA and provides that such regulations may contain such classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions, for any class of electronic fund transfers or remittance transfers as in the judgment of the Bureau are necessary or proper to effectuate the purposes of EFTA, to prevent circumvention or evasion thereof, or to facilitate compliance therewith. As amended by the Dodd-Frank Act, TILA section 105(a) \7\ directs the Bureau to prescribe regulations to carry out the purposes of TILA and provides that such regulations may contain such additional requirements, classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions for all or any class of transactions as in the judgment of the Bureau are necessary or proper to effectuate the purposes of TILA, to prevent circumvention or evasion thereof, or to facilitate compliance therewith.\8\ Section 1032(a) [[Page 13784]] of the Dodd-Frank Act \9\ provides that the Bureau may prescribe rules to ensure that the features of any consumer financial product or service, both initially and over the term of the product or service, are fully, accurately, and effectively disclosed to consumers in a manner that permits consumers to understand the costs, benefits, and risks associated with the product or service, in light of the facts and circumstances. Additionally, under Dodd-Frank Act section 1022(b)(1),\10\ the Bureau has general authority to prescribe rules as may be necessary or appropriate to enable the Bureau to administer and carry out the purposes and objectives of the Federal consumer financial laws, and to prevent evasions thereof. EFTA, TILA, and Title X of the Dodd-Frank Act are Federal consumer financial laws. Accordingly, in proposing this rule, the Bureau is exercising its authority under Dodd- Frank Act section 1022(b) \11\ to prescribe rules under EFTA, TILA, and Title X of the Dodd-Frank Act that carry out the purposes and objectives and prevent evasion of those laws. Section 1022(b)(2) of the Dodd-Frank Act \12\ prescribes certain standards for rulemaking that the Bureau must follow in exercising its authority under section 1022(b)(1). --------------------------------------------------------------------------- \5\ See, e.g., 81 FR 83934, 83958-60 (Nov. 22, 2016). \6\ 15 U.S.C. 1593b(a). \7\ 15 U.S.C. 1604(a). \8\ TILA section 105(d) generally provides that a regulation requiring any disclosure that differs from the disclosures previously required by parts A, D, or E of TILA shall have an effective date ``of that October 1 which follows by at least six months the date of promulgation.'' Section 105(d) further provides that the Bureau ``may at its discretion take interim action by regulation, amendment, or interpretation to lengthen the period of time permitted for creditors or lessors to adjust their forms to accommodate new requirements.'' Although the Bureau desires to have the rule take effect as soon as feasible given its value for consumers, the Bureau is proposing to use its discretion under TILA section 105(d) to lengthen the period in this instance. The Bureau believes the changes the Prepaid Accounts Final Rule will require to disclosures pursuant to Regulation Z warrant a delayed effective date that conforms to the rest of the rule. \9\ 12 U.S.C. 5532(a). \10\ 12 U.S.C. 5512(b)(1). \11\ 12 U.S.C. 5512(b). \12\ 12 U.S.C. 5512(b)(2). --------------------------------------------------------------------------- IV. Provisions Affected by the Proposal 1005.18 Requirements for Financial Institutions Offering Prepaid Accounts 18(b) Pre-Acquisition Disclosure Requirements 18(b)(2) Short Form Disclosure Content 18(b)(2)(ix) Disclosure of Additional Fee Types Regulation E Sec. 1005.18(b)(2) describes the short form disclosure requirements for prepaid accounts. Section 1005.18(b)(2)(ix) contains requirements specifically regarding additional fee types. Section 1005.18(b)(2)(ix)(D) describes the timing requirements for the initial assessment of an additional fee types disclosure, and Sec. 1005.18(b)(2)(ix)(E) describes the timing for the periodic reassessment and update of additional fee types disclosures. The Bureau is proposing to revise the dates in the regulatory text and headings in Sec. 1005.18(b)(2)(ix)(D)(1) through (3) and in comments 18(b)(2)(ix)(D)(1)- 1, 18(b)(2)(ix)(D)(2)-1, 18(b)(2)(ix)(E)(2)-1.i through iii, and 18(b)(2)(ix)(E)(3)-1 to reflect the proposed revised effective date of April 1, 2018. The Bureau is not, however, proposing to change the October 1, 2014 date in Sec. 1005.18(b)(2)(ix)(D)(1) and related commentary, which is the beginning of the time frame for which financial institutions may calculate additional fee types to disclose, so as not to inconvenience financial institutions who have already prepared their additional fee types calculations in reliance on that date. 18(h) Effective Date and Special Transition Rules for Disclosure Provisions Regulation E Sec. 1005.18(h) sets forth several provisions to make clearer the Prepaid Accounts Final Rule's general October 1, 2017 effective date. The Bureau is proposing to revise the dates in the regulatory text and headings throughout Sec. 1005.18(h) and in comments 18(h)-1, 2, 6.i and 6.ii to reflect the proposed revised effective date of April 1, 2018. 1005.19 Internet Posting of Prepaid Account Agreements 19(f) Effective Date 19(f)(1) Effective Date Regulation E Sec. 1005.19(f)(1) sets forth the general effective date for the prepaid account agreement posting requirements in Sec. 1005.19, other than the delayed requirement to submit prepaid account agreements to the Bureau pursuant to Sec. 1005.19(b), as addressed in Sec. 1005.19(f)(2). The Bureau is proposing to revise the date in the regulatory text of Sec. 1005.19(f)(1) to reflect the proposed revised effective date of April 1, 2018. As discussed above, the Bureau is not proposing to delay the October 1, 2018 date for submission of agreements to the Bureau. V. Effective Date The Bureau is proposing to delay the effective date of the Prepaid Accounts Final Rule by six months, to April 1, 2018. Additionally, the Bureau is proposing to make conforming amendments to Regulation E Sec. Sec. 1005.18(b)(2)(ix) and (h), and 1005.19(f)(1), and related commentary. After considering comments received on the proposal, the Bureau will publish a final rule with respect to the effective date of the Prepaid Accounts Final Rule. The Bureau proposes that the final rule with respect to the effective date of the Prepaid Accounts Final Rule will become effective 30 days after publication in the Federal Register, as required under section 553(d) of the Administrative Procedure Act.\13\ --------------------------------------------------------------------------- \13\ 5 U.S.C. 553(d). --------------------------------------------------------------------------- VI. Section 1022(b) of the Dodd-Frank Act In developing the proposed rule, the Bureau has considered the potential benefits, costs and impacts required by section 1022(b)(2) of the Dodd-Frank Act. Specifically, section 1022(b)(2) calls for the Bureau to consider the potential benefits and costs of a regulation to consumers and covered persons, including the potential reduction of consumer access to consumer financial products or services, the impact on depository institutions and credit unions with $10 billion or less in total assets as described in section 1026 of the Dodd-Frank Act, and the impact on consumers in rural areas. In addition, 12 U.S.C. 5512(b)(2)(B) directs the Bureau to consult, before and during the rulemaking, with appropriate prudential regulators or other Federal agencies, regarding consistency with the objectives those agencies administer. The Bureau consulted, or offered to consult with, the prudential regulators, the Department of the Treasury, the Securities and Exchange Commission, and the Federal Trade Commission regarding consistency with any prudential, market, or systemic objectives administered by these agencies. The Bureau previously considered the costs, benefits, and impacts of the Prepaid Accounts Final Rule's major provisions.\14\ Compared to the baseline established by the Prepaid Accounts Final Rule,\15\ the proposed delay of the effective date of the Prepaid Accounts Final Rule would generally benefit covered persons by facilitating initial compliance with the Prepaid Accounts Final Rule's requirements and delaying the start of ongoing compliance costs. Because covered persons retain the option of complying with the Prepaid Accounts Final Rule's effective date, any delay in the effective date will not increase costs to providers because they retain the option of complying with the original effective date. If a delay in the effective date would help to preserve consumer access to covered products by minimizing industry disruption, both [[Page 13785]] consumers and covered persons would benefit. The Bureau believes that delaying the effective date may also delay consumers' realization of benefits arising from the protections provided by the Prepaid Accounts Final Rule. In addition, the Bureau does not expect the proposed rule to have a differential impact on depository institutions and credit unions with $10 billion or less in total assets as described in section 1026 of the Dodd-Frank Act or on consumers in rural areas. The Bureau does not believe that the proposed delay in the effective date would reduce consumer access to consumer financial products and services, and it may increase consumer access by decreasing the possibility of industry disruption arising from the Prepaid Accounts Final Rule's implementation. --------------------------------------------------------------------------- \14\ 81 FR 83934, 84269 (Nov. 22, 2016). \15\ The Bureau has discretion in any rulemaking to choose an appropriate scope of analysis with respect to potential benefits, costs, and impacts and an appropriate baseline. --------------------------------------------------------------------------- The Bureau requests comment on this discussion as well as submission of additional information that could inform the Bureau's consideration of the potential benefits, costs, and impacts of this proposed rule. VII. Regulatory Flexibility Act The Regulatory Flexibility Act \16\ as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 \17\ (RFA) requires each agency to consider the potential impact of its regulations on small entities, including small businesses, small governmental units, and small not-for-profit organizations.\18\ The RFA defines a ``small business'' as a business that meets the size standard developed by the Small Business Administration (SBA) pursuant to the Small Business Act.\19\ --------------------------------------------------------------------------- \16\ Public Law 96-354, 94 Stat. 1164 (1980). \17\ Public Law 104-21, section 241, 110 Stat. 847, 864-65 (1996). \18\ 5 U.S.C. 601 through 612. The term ```small organization' means any not-for-profit enterprise which is independently owned and operated and is not dominant in its field, unless an agency establishes [an alternative definition under notice and comment].'' 5 U.S.C. 601(4). The term ```small governmental jurisdiction' means governments of cities, counties, towns, townships, villages, school districts, or special districts, with a population of less than fifty thousand, unless an agency establishes [an alternative definition after notice and comment].'' 5 U.S.C. 601(5). \19\ 5 U.S.C. 601(3). The Bureau may establish an alternative definition after consulting with the SBA and providing an opportunity for public comment. Id. --------------------------------------------------------------------------- The RFA generally requires an agency to conduct an initial regulatory flexibility analysis (IRFA) and a final regulatory flexibility analysis (FRFA) of any rule subject to notice-and-comment rulemaking requirements, unless the agency certifies that the rule would not have a significant economic impact on a substantial number of small entities.\20\ The Bureau also is subject to certain additional procedures under the RFA involving the convening of a panel to consult with small entity representatives prior to proposing a rule for which an IRFA is required.\21\ --------------------------------------------------------------------------- \20\ 5 U.S.C. 601 through 612. \21\ 5 U.S.C. 609. --------------------------------------------------------------------------- In the Prepaid Accounts NPRM, the Bureau concluded that the rule would not have a significant economic impact on a substantial number of small entities and that an IRFA was therefore not required.\22\ That conclusion remained unchanged for the Prepaid Accounts Final Rule.\23\ The Bureau concludes that an IRFA is not required for this proposed rule because the proposed rule, which would delay the effective date of a rule that will not have a significant economic impact on a substantial number of small entities, would not have a significant economic impact on a substantial number of small entities if adopted. --------------------------------------------------------------------------- \22\ 79 FR 77102, 77283 (Dec. 23, 2014). \23\ 81 FR 83934, 84308 (Nov. 22, 2016). --------------------------------------------------------------------------- As discussed above, the proposal would delay the effective date of the Prepaid Accounts Final Rule to April 1, 2018. The proposed six- month delay in the effective date would benefit small entities by providing additional flexibility with respect to the timing of the Prepaid Accounts Final Rule's implementation. In addition to generally providing increased flexibility, the delay in the effective date would permit small entities to delay the commencement of any ongoing costs that result from complying with the Prepaid Accounts Final Rule. Because small entities retain the option of complying with the Prepaid Accounts Final Rule's original effective date, the proposed rule's delay of the effective date will not increase costs incurred by small entities relative to the baseline established by the Prepaid Accounts Final Rule. Accordingly, the undersigned hereby certifies that this proposed rule, if adopted, would not have a significant economic impact on a substantial number of small entities. VIII. Paperwork Reduction Act Under the Paperwork Reduction Act of 1995 \24\ (PRA), Federal agencies are generally required to seek Office of Management and Budget (OMB) approval for information collection requirements prior to implementation. The collections of information related to the Prepaid Accounts Final Rule have been previously reviewed and approved by OMB in accordance with the PRA and assigned OMB Control Number 3170-0014 (Regulation E) and 3170-0015 (Regulation Z). Under the PRA, the Bureau may not conduct or sponsor and, notwithstanding any other provision of law, a person is not required to respond to an information collection unless the information collection displays a valid control number assigned by OMB. --------------------------------------------------------------------------- \24\ 44 U.S.C. 3501 et seq. --------------------------------------------------------------------------- The Bureau has determined that this proposed rule would not have any new or revised information collection requirements (recordkeeping, reporting, or disclosure requirements) on covered entities or members of the public that would constitute collections of information requiring OMB approval under the PRA. The Bureau welcomes comments on this determination or any other aspects of this proposal for purposes of the PRA. Comments should be submitted to the Bureau as instructed in the Addresses part of this notice and to the attention of the Paperwork Reduction Act Officer. All comments will become a matter of public record. Dated: March 8, 2017. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2017-05060 Filed 3-14-17; 8:45 am] BILLING CODE 4810-AM-P
![13782 Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Proposed Rules
BUREAU OF CONSUMER FINANCIAL become part of the public record and Regulation Z’s coverage to overdraft
PROTECTION subject to public disclosure. Sensitive credit features that may be offered in
personal information, such as account conjunction with prepaid accounts.2
12 CFR Parts 1005 and 1026 numbers or Social Security numbers, The Bureau released a proposal
[Docket No. CFPB–2017–0008] should not be included. Comments will regarding prepaid accounts under
not be edited to remove any identifying Regulations E and Z, including model
RIN 3170–AA69 or contact information. and sample disclosure forms, for public
FOR FURTHER INFORMATION CONTACT: comment on November 13, 2014,3 and
Prepaid Accounts Under the Electronic released the Prepaid Accounts Final
Thomas L. Devlin or Yaritza Velez,
Fund Transfer Act (Regulation E) and Rule on October 5, 2016.
Counsels, or Kristine M. Andreassen,
the Truth in Lending Act (Regulation Upon issuing the Prepaid Accounts
Senior Counsel, Office of Regulations, at
Z); Delay of Effective Date Final Rule, the Bureau initiated robust
(202) 435–7700.
AGENCY: Bureau of Consumer Financial SUPPLEMENTARY INFORMATION:
efforts to support industry
Protection. implementation.4 Information regarding
I. Summary of the Proposed Rule the Bureau’s Prepaid Accounts Final
ACTION: Proposed rule with request for
On October 5, 2016, the Bureau Rule implementation initiatives and
public comment.
released a final rule to create available resources can be found on the
SUMMARY: The Bureau of Consumer comprehensive consumer protections Bureau’s regulatory implementation
Financial Protection (Bureau or CFPB) is for prepaid accounts under Regulation Web site at https://
proposing to delay the October 1, 2017 E, which implements the Electronic www.consumerfinance.gov/policy-
effective date of the rule governing Fund Transfer Act (EFTA), and compliance/guidance/implementation-
Prepaid Accounts Under the Electronic Regulation Z, which implements the guidance/prepaid-rule/.
Fund Transfer Act (Regulation E) and Truth in Lending Act (TILA) (Prepaid B. Proposed Effective Date
the Truth in Lending Act (Regulation Z) Accounts Final Rule).1 The Prepaid
As published, the Prepaid Accounts
by six months, to April 1, 2018. Accounts Final Rule has an effective
Final Rule has a general effective date
DATES: Comments must be received on date of October 1, 2017. Through its
of October 1, 2017. As part of its efforts
or before April 5, 2017. efforts to support industry
to support industry implementation, the
ADDRESSES: You may submit comments, implementation of the Prepaid Accounts Bureau has discussed implementation
identified by Docket No. CFPB–2017– Final Rule, the Bureau has learned that efforts with a number of industry
0008 or RIN 3170–AA69, by any of the some industry participants believe they participants. As a result of those
following methods: will have difficulty complying with discussions, the Bureau has learned that
• Email: FederalRegisterComments@ certain provisions of the Prepaid some industry participants are
cfpb.gov. Include Docket No. CFPB– Accounts Final Rule that go into effect concerned that they will have difficulty
2017–0008 or RIN 3170–AA69 in the October 1, 2017. In order to facilitate in complying with the Prepaid Accounts
subject line of the email. compliance with the Prepaid Accounts Final Rule while also ensuring
• Electronic: http:// Final Rule, and to allow an opportunity continued availability of their prepaid
www.regulations.gov. Follow the for the Bureau to assess whether any products and with minimal disruption
instructions for submitting comments. additional adjustments to the Rule are to consumers by October 1, 2017 for a
• Mail: Monica Jackson, Office of the appropriate, the Bureau is proposing to variety of reasons. For example, the
Executive Secretary, Consumer extend the effective date of the Prepaid Bureau put in place an exception in
Financial Protection Bureau, 1700 G Accounts Final Rule by six months, to Regulation E § 1005.18(h)(2) pursuant to
Street NW., Washington, DC 20552. April 1, 2018. The Bureau believes that which financial institutions are not
• Hand Delivery/Courier: Monica such an extension would, among other
Jackson, Office of the Executive things, help industry participants 2 81 FR 83934 (Nov. 22, 2016).
Secretary, Consumer Financial address certain packaging-related 3 79 FR 77102 (Dec. 23, 2014) (Prepaid Accounts
Protection Bureau, 1275 First Street NE., logistical issues for prepaid accounts NPRM). See also Press Release, CFPB, CFPB
that are sold at retail locations. Proposes Strong Federal Protections for Prepaid
Washington, DC 20002. Products (Nov. 13, 2014), available at https://
Instructions: All submissions should This proposed rule seeks comment on www.consumerfinance.gov/about-us/newsroom/
include the agency name and docket whether the Bureau should extend the cfpb-proposes-strong-federal-protections-for-
number or Regulatory Information effective date of the Prepaid Accounts prepaid-products/. The Bureau had previously
Final Rule, and if so, whether six issued an advance notice of proposed rulemaking
Number (RIN) for this rulemaking. that posed a series of questions for public comment
Because paper mail in the Washington, months is an appropriate length of time about how the Bureau might consider regulating
DC area and at the Bureau is subject to for such an extension. The Bureau is general purpose reloadable cards and other prepaid
delay, commenters are encouraged to also proposing to make conforming products. 77 FR 30923 (May 24, 2012).
4 These on-going efforts include: (1) The
submit comments electronically. In amendments to certain regulatory text
publication of a plain-language small entity
general, all comments received will be and commentary adopted in the Prepaid compliance guide to help industry understand the
posted without change to http:// Accounts Final Rule to reflect the Prepaid Accounts Final Rule; (2) the publication of
www.regulations.gov. In addition, proposed effective date delay. various other implementation tools regarding the
Prepaid Accounts Final Rule, including an
comments will be available for public II. Background executive summary of the rule, summaries of key
inspection and copying at 1275 First changes for payroll card accounts and government
rmajette on DSK30RV082PROD with PROPOSALS
Street NE., Washington, DC 20002, on A. The Prepaid Accounts Rulemaking benefit accounts, a prepaid account coverage chart,
and a summary of the rule’s effective date
official business days between the hours In the Prepaid Accounts Final Rule, provisions; (3) the release of native design files for
of 10 a.m. and 5 p.m. Eastern Time. You the Bureau extended Regulation E print and source code for web-based disclosures for
can make an appointment to inspect the coverage to prepaid accounts and all of the model and sample disclosure forms
documents by telephoning (202) 435– adopted provisions specific to such included in the Prepaid Accounts Final Rule; (4)
meetings with industry, including trade
7275. accounts, and generally expanded associations and individual industry participants,
All comments, including attachments to discuss and support their implementation efforts;
and other supporting materials, will 1 81 FR 83934 (Nov. 22, 2016). and (5) participation in conferences and forums.
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![Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Proposed Rules 13785
consumers and covered persons would a substantial number of small entities.20 and assigned OMB Control Number
benefit. The Bureau believes that The Bureau also is subject to certain 3170–0014 (Regulation E) and 3170–
delaying the effective date may also additional procedures under the RFA 0015 (Regulation Z). Under the PRA, the
delay consumers’ realization of benefits involving the convening of a panel to Bureau may not conduct or sponsor and,
arising from the protections provided by consult with small entity notwithstanding any other provision of
the Prepaid Accounts Final Rule. In representatives prior to proposing a rule law, a person is not required to respond
addition, the Bureau does not expect the for which an IRFA is required.21 to an information collection unless the
proposed rule to have a differential In the Prepaid Accounts NPRM, the information collection displays a valid
impact on depository institutions and Bureau concluded that the rule would control number assigned by OMB.
credit unions with $10 billion or less in not have a significant economic impact The Bureau has determined that this
total assets as described in section 1026 on a substantial number of small entities proposed rule would not have any new
of the Dodd-Frank Act or on consumers and that an IRFA was therefore not or revised information collection
in rural areas. The Bureau does not required.22 That conclusion remained requirements (recordkeeping, reporting,
believe that the proposed delay in the unchanged for the Prepaid Accounts or disclosure requirements) on covered
effective date would reduce consumer Final Rule.23 The Bureau concludes that entities or members of the public that
access to consumer financial products an IRFA is not required for this would constitute collections of
and services, and it may increase proposed rule because the proposed information requiring OMB approval
consumer access by decreasing the rule, which would delay the effective under the PRA. The Bureau welcomes
possibility of industry disruption arising date of a rule that will not have a comments on this determination or any
from the Prepaid Accounts Final Rule’s significant economic impact on a other aspects of this proposal for
implementation. substantial number of small entities, purposes of the PRA. Comments should
The Bureau requests comment on this would not have a significant economic be submitted to the Bureau as instructed
discussion as well as submission of impact on a substantial number of small in the ADDRESSES part of this notice and
additional information that could entities if adopted. to the attention of the Paperwork
inform the Bureau’s consideration of the As discussed above, the proposal Reduction Act Officer. All comments
potential benefits, costs, and impacts of would delay the effective date of the will become a matter of public record.
this proposed rule. Prepaid Accounts Final Rule to April 1, Dated: March 8, 2017.
2018. The proposed six-month delay in Richard Cordray,
VII. Regulatory Flexibility Act the effective date would benefit small
Director, Bureau of Consumer Financial
The Regulatory Flexibility Act 16 as entities by providing additional Protection.
amended by the Small Business flexibility with respect to the timing of
[FR Doc. 2017–05060 Filed 3–14–17; 8:45 am]
Regulatory Enforcement Fairness Act of the Prepaid Accounts Final Rule’s
BILLING CODE 4810–AM–P
1996 17 (RFA) requires each agency to implementation. In addition to generally
consider the potential impact of its providing increased flexibility, the
regulations on small entities, including delay in the effective date would permit
small entities to delay the DEPARTMENT OF HOMELAND
small businesses, small governmental SECURITY
units, and small not-for-profit commencement of any ongoing costs
organizations.18 The RFA defines a that result from complying with the
Coast Guard
‘‘small business’’ as a business that Prepaid Accounts Final Rule. Because
meets the size standard developed by small entities retain the option of 33 CFR Part 117
the Small Business Administration complying with the Prepaid Accounts
Final Rule’s original effective date, the [Docket Number USCG–2016–0723]
(SBA) pursuant to the Small Business
Act.19 proposed rule’s delay of the effective RIN 1625–AA09
date will not increase costs incurred by
The RFA generally requires an agency small entities relative to the baseline Drawbridge Operation Regulation;
to conduct an initial regulatory established by the Prepaid Accounts Atlantic Intracoastal Waterway, St.
flexibility analysis (IRFA) and a final Final Rule. Accordingly, the Augustine, FL
regulatory flexibility analysis (FRFA) of undersigned hereby certifies that this
any rule subject to notice-and-comment proposed rule, if adopted, would not AGENCY: Coast Guard, DHS.
rulemaking requirements, unless the have a significant economic impact on ACTION:Advance notice of proposed
agency certifies that the rule would not a substantial number of small entities. rulemaking.
have a significant economic impact on
VIII. Paperwork Reduction Act SUMMARY: The Coast Guard is seeking
16 Public Law 96–354, 94 Stat. 1164 (1980). Under the Paperwork Reduction Act comments and information concerning a
17 Public Law 104–21, section 241, 110 Stat. 847,
of 1995 24 (PRA), Federal agencies are proposal to change the operating
864–65 (1996). schedule for the Bridge of Lions across
generally required to seek Office of
18 5 U.S.C. 601 through 612. The term ‘‘‘small
the Atlantic Intracoastal Waterway, St.
organization’ means any not-for-profit enterprise Management and Budget (OMB)
Augustine, Florida. The City of St.
which is independently owned and operated and is approval for information collection
not dominant in its field, unless an agency Augustine is concerned that vehicle
requirements prior to implementation.
establishes [an alternative definition under notice traffic is becoming exponentially worse
The collections of information related to
and comment].’’ 5 U.S.C. 601(4). The term ‘‘‘small with each passing season and that on-
the Prepaid Accounts Final Rule have
rmajette on DSK30RV082PROD with PROPOSALS
governmental jurisdiction’ means governments of demand bridge openings are
cities, counties, towns, townships, villages, school been previously reviewed and approved
districts, or special districts, with a population of contributing to vehicle traffic backups.
by OMB in accordance with the PRA
less than fifty thousand, unless an agency The proposed modification would
establishes [an alternative definition after notice 20 5U.S.C. 601 through 612.
extend the twice an hour draw opening
and comment].’’ 5 U.S.C. 601(5). period from 7 a.m. to 9 p.m. daily, and
21 5U.S.C. 609.
19 5 U.S.C. 601(3). The Bureau may establish an
alternative definition after consulting with the SBA
22 79 FR 77102, 77283 (Dec. 23, 2014). preclude the bridge draw from opening
and providing an opportunity for public comment. 23 81 FR 83934, 84308 (Nov. 22, 2016). at 3:30 p.m. on weekends and Federal
Id. 24 44 U.S.C. 3501 et seq. holidays.
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Document Created: 2017-03-15 06:04:13
Document Modified: 2017-03-15 06:04:13
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Proposed rule with request for public comment. | |
| Dates | Comments must be received on or before April 5, 2017. | |
| Contact | Thomas L. Devlin or Yaritza Velez, Counsels, or Kristine M. Andreassen, Senior Counsel, Office of Regulations, at (202) 435-7700. | |
| FR Citation | 82 FR 13782 | |
| RIN Number | 3170-AA69 | |
| CFR Citation | 12
CFR
1005 12 CFR 1026 |
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