Final answer:
The CFPB Prepaid Rule that took effect on April 1, 2019 states that financial institutions must disclose fees and other important information associated with prepaid accounts, limit consumer liability for unauthorized transactions, and have the authority to take action against unfair or deceptive practices.
Step-by-step explanation:
The Consumer Financial Protection Bureau (CFPB) Prepaid Rule that took effect on April 1, 2019 states that:
- Financial institutions must disclose fees and other important information associated with prepaid accounts to consumers.
- Financial institutions must limit consumer liability for unauthorized transactions on prepaid accounts.
- The CFPB has the authority to take action against financial institutions that engage in unfair or deceptive practices related to prepaid accounts.