The Consumer Financial Protection Bureau (CFPB) is taking a proactive role and defining its expectations for the so called faster payment networks before solution have really even developed. This include participation in NACHA’s rules development for same day ACH. Yesterday, the CFPB announced its guiding principles for the budding faster payments networks, saying:
Companies developing new financial technologies should be building systems from the outset with consumer protections in mind,” said CFPB Director Richard Cordray. “It is a lot easier to build something right from the start than it is to retrofit it. The CFPB will continue our work to help ensure that financial services marketplaces are safe and transparent for consumers.”
Further reading of the CFPB comments on NACHA proposed rules suggest that the CFPB has some very specific ideas around controls, price and notifications. Hopefully this doesn’t turn into an over-reach into a product development role for the regulatory body that could slow down development of faster payments.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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