CFPB tweaks proposed prepaid payroll card rules

As a few individual states in the U.S. examine payroll and debit card rules, the Consumer Financial Protection Bureau also has this product on its mind.

News reports Thursday (July 13) said the CFPB issued a proposal to amend regulations that affect payroll debit card usage. The amendments would affect Regulation E, which includes the Electronic Fund Transfer Act, and Regulation Z, which includes the Truth in Lending Act, according to Bloomberg BNA reports.

In its Federal Register, the CFPB said it is proposing to revise error resolution and limited liability provisions under Regulation E in an effort to no longer require financial institutions to resolve errors or limit customers’ liability unless the consumer’s identity is later verified, in which case FIs would be required to limit the customer’s liability and resolve errors over disputed transactions, even if they occurred before the identity was verified.

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