ATLANTA (PRWEB) March 25, 2015
The American Transaction Processors Coalition (ATPC), a leading industry association of payment processors, has submitted a letter warning federal regulators that a proposed rule on prepaid accounts could severely limit consumer access and stifle innovation in the financial technology sector, if approved as written.
The American Transaction Processors Coalition submitted comments to the Consumer Financial Protection Bureau (CFPB) in response to the regulators proposed new rules for prepaid accounts.
While we applaud the CFPBs intentions to protect consumers, we are highly concerned that the proposed regulation will actually have the reverse effect by cutting off consumer access and stifling innovation, said ATPC Executive Director H. West Richards. Prepaid accounts are increasingly important tools for consumers and businesses alike. The CFPB needs to take the time to fully understand the potential unintended consequences of these rules before moving forward.
The ATPC has also engaged Congress on behalf of the industry, forging a bipartisan consensus within Georgias Congressional Delegation that the proposed regulations could overly burden the states transaction processing industry. Members of the delegation have challenged the CFPB and the U.S. Treasury to fully study the risk of unintended consequences on consumers and the industry before finalizing the rule.
The full ATPC letter submitted to the CFPB can be read here.