Look for a final rule on paycards during the spring of 2016, the Consumer Financial Protection Board (CFPB) said recently.
The rule would place stricter requirements on employers that want to pay wages using paycards, and on prepaid accounts in general.
The CFPB published a proposed rule in the Federal Register in December 2014.
Then came the comments: almost 4,000 of them.
The goal of the proposed rule is to increase consumer protections. It’d amend the regs for the Electronic Funds Transfer Act and the Truth in Lending Act.
If an employee doesn’t have a checking account, and can’t sign up for direct deposit, paycards can be a win-win – and popularity is on the rise.
In 2014, there were 6.0 million payroll card holders and 7.8 million employees receiving paper checks. The 2015 estimates are 7.4 million and 6.7 million respectively, according to a survey by the Aite Group.