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09-29-2016, 11:51 AM #1
CFPB Looking at Regulating Prepaid Cards
Not sure how this will shake out, but the CFPB is looking to regulate pre-paid cards more closely. It seems they want to treat them more like banks.
10-03-2016, 11:36 AM #2
Maybe get some of those fees under control.
10-03-2016, 02:01 PM #3
10-06-2016, 01:59 PM #4
Not looking to, they did. New rules are published, and most go into effect October 1, 2017.
10-07-2016, 10:43 AM #5
News to me.
Can someone tell me what will the new rules be?
10-21-2016, 08:40 AM #6
I have not gone through all the regs myself. But the general idea is to make prepaid cards more consumer friendly.
First, the rules ensure you know all the fees associated with the card. This includes monthly fees, reloading fees, ATM fees, etc. All of these fees should be more prominently displayed on the packaging.
You also are supposed to get your basic account information -- like balances and transaction history -- for free.
On top of that, protections for lost or stolen cards will now be extended to prepaid debit cards.
And, while, over-drafting and over-drafting fees are not eliminated, the new rules are supposed to make those more consumer friendly as well.
Many consumer advocates wanted to eliminate overdraft services entirely, due to high fees and interest costs. However, those services will still be allowed.
The new rules will apply to:
- Traditional prepaid cards
- Payroll cards
- Student financial aid disbursement cards
- Tax refund cards
- Benefits cards, such as cards used for social security benefits and unemployment insurance.
- All other electronic accounts that can store funds.
10-25-2016, 07:38 AM #7
Just greasing the wheels of a cashless society.
02-08-2017, 03:08 PM #8
Quick update: Congress is looking at repealing the new CFPB rules, which include better disclosures and elimination of overdraft fees. I think the latter may be the reason behind it.
Not sure if overdraft fees help or hurt consumers. But when you run out of money in between pay checks, would;t you want to incur those fees if it means keeping the lights on for your family>
02-10-2017, 08:51 AM #9
Are we going to undo all the good that the CFPB is trying to do for consumers?
02-13-2017, 04:08 PM #10
Even if they allow overdraft fees, I cannot imagine they will stop rules requiring up front disclosure of all fees.