Today, the Consumer Financial Protection Bureau (“CFPB”) issued its long-awaited proposed rule to further regulate prepaid card products (the “Proposed Rule”). The Proposed Rule was the topic of discussion at a field hearing in Wilmington, Delaware, which featured remarks from CFPB Director Richard Cordray and testimony from consumer groups, industry representatives, and members of the public. The CFPB also issued a study on prepaid account agreements.

In May 2012, the CFPB published an Advance Notice of Proposed Rulemaking (“Advance Notice”) on what the CFPB then described as “general-purpose reloadable prepaid cards.” However, the Proposed Rule released today is much broader in scope.