ETA today sent a letter to members of both the House and Senate requesting their support for use of the Congressional Review Act (CRA) to further examine the Consumer Financial Protection Bureau (CFPB) final rule on prepaid cards. Joint resolutions have been introduced in the House (H.J.Res.73) and Senate (S. J. Res. 19) to achieve this goal.
If implemented, the final CFPB rule would stifle innovation by imposing an inflexible, one-size-fits-all framework on a variety of diverse financial service products, each serving a critical need. The rule would dampen competition and reduce or even eliminate many useful features of prepaid products. Ultimately, the rule would undermine consumer access to financial services, with particularly adverse effects for underserved consumers
As the rule is almost due to go into effect, the time for action is imminent. We encourage Congress to address serious concerns with this regulation and work towards creating a regulatory environment that encourages innovation and expands financial services access for millions of underserved Americans.