Tech & Innovation

Debit card

Public Comment: Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z)

March 23, 2015

By Blake Taylor, Policy Analyst
This Consumer Financial Protection Bureau (CFPB or “Bureau”) proposed rule would extend various consumer protections to prepaid account products. Protections for traditional bank account and credit products now exist through Regulation E, which governs electronic funds transfers, and Regulation Z, which governs the use of consumer credit. However, prepaid accounts such as debit cards that can be pre-loaded with funds are currently unregulated. CFPB proposes to amend Regulation E and Regulation Z to apply existing and new protections to these relatively new financial products by imposing various information disclosure, limited liability, error resolution, and consumer credit requirements. Before proceeding, CFPB should gather more updated information on the prepaid debit card market about sellers and buyers of prepaid cards, as required by statute. As this proposal stands, it is likely to increase costs and may reduce access with little or no discernible benefits for card users.

cars

Public Interest Comment on the National Highway Traffic Safety Administration’s Advance Notice of Proposed Rulemaking: Federal Motor Vehicle Safety Standards: Vehicle-to-Vehicle (V2V) Communications

October 21, 2014

By Gerald W. Brock and Lindsay M. Abate (Scherber)
Seeking to address the high number of motor vehicle crashes in the United States, the National Highway Traffic Safety Administration (NHTSA) recently issued an ANPRM that preliminarily proposes to mandate vehicle-to-vehicle (V2V) communication capabilities in new passenger cars and light trucks beginning in 2020. While NHTSA argues that a mandate is necessary to induce collective action because "no single manufacturer will have the incentive to build vehicles able to 'talk' to other vehicles if there are no other vehicles to talk to," we argue that the agency has not clearly demonstrated a market failure that requires regulation. Second, we contend, based on previous government attempts at anticipatory standardization, that it is impossible to predict the future course of technology with enough confidence to prescribe a specific detailed standard that will remain in effect for many years. Finally, we argue that NHTSA's cost-benefit analysis, though necessarily uncertain at this time, appears to underestimate some costs and overestimate some benefits.