Prepaid Rule survives nullification attempt

Ballard Spahr LLP has posted an article in its Consumer Finance Monitor reporting that the CFPB Prepaid Account Rule has survived a Senate challenge under the Congressional Review Act (CRA). There were joint resolutions introduced in both the Senate and the House to disapprove the final rule under the CRA. If both houses had passed the resolutions by May 11, and the president had agreed, the rule would have been nullified and a similar rule could not have been adopted without subsequent enactment of a new law calling for the rule. The May 11 deadline passed without passage in Congress, and the Rule is now scheduled to become effective on April 1, 2018. As noted in our April 21 Top Story, when the Bureau formally postponed the effective date from October 1, 2017, to April 1, 2018, it also agreed to revisit two substantive issues in the Prepaid Rule.