The American Transaction Processors Coalition (ATPC) submitted comments to the Consumer Financial Protection Bureau (CFPB) in response to the regulator’s proposed new rules for prepaid accounts.
“While we applaud the CFPB’s 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 also engaged Congress in the fight, on behalf of the industry, forging a bipartisan consensus within Georgia’s Congressional Delegation that the proposed regulations could overly burden the state’s transaction processing industry. Members of the delegation
25 challenged the CFPB and the U.S. Treasury to fully study – before finalizing the rule – the risk of unintended consequences that would limit consumer access and stifle innovation in the financial technology industry, if approved as written.
ATPC Executive Director, H. West Richards, and Tom Worrall from Whitmer & Worrall began socializing an extension request to the CFPB timeline within offices of the Georgia Delegation on Capitol Hill. Within short order, members supported the drafting of a letter to CFPB, from the Georgia Congressional Delegation on behalf of Transaction Alley members, requesting an extension to the existing comment period. The CFPB proposed rule change document checked in at more than 870 pages, requiring more time for an adequate review and response from the industry.
ATPC staff and members participated in more than a dozen meetings on Capitol Hill, ultimately securing signatures of support from thirteen of the Georgia Congressional Delegation’s fourteen members. The signatures are particularly noteworthy because they include 100 percent of Georgia’s Democratic Caucus and the four members of Georgia’s Freshman Class. This was accomplished in one of the most chaotic times on the Congressional calendar.
A special thank you goes to Congressman Tom Price (R-GA), current Chair of the House Budget Committee, for his willingness to champion the ATPC initiative, and helping to ensure this significant success. Congressman Tom Price’s office hand-delivered the letter to the CFPB on behalf of the entire Georgia Delegation.