Congress targets payroll card regulations for repeal

The House and Senate have introduced joint resolutions to repeal the Consumer Financial Protection Bureau (CFPB) final rule on payroll cards (see PAYROLL MANAGEMENT GUIDE Report Letter 1478/2457, dated October 11, 2016). The resolutions are required to repeal regulations under the Congressional Review Act. Note that, the final rule’s definition of prepaid accounts specifically included payroll card accounts and government benefit accounts that are currently subject to Regulation E. In addition, the final rule requires that short form disclosures for payroll card accounts and government benefit accounts include, at the top of the form, a statement regarding alternative wage or benefit payment options. (H.J. Res. 62, February 3, 2017; S.J. Res. 19, February 1, 2017.)

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