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  1. #1
    Registered User Senior Member
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    124

    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.


  2. CFPB Looking at Regulating Prepaid Cards
  3. #2
    Registered User Semi Pro Member
    Posts
    298
    Maybe get some of those fees under control.

  4. #3
    Registered User Semi Pro Member
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    336
    Quote Originally Posted by Tina View Post
    Maybe get some of those fees under control.
    We'll see. This is going to be pretty broad based. It will even cover some gift cards, not just re-loadable debit cards.

    I think they end up being more expensive and less useful in the end.

  5. #4
    Registered User Junior Member
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    43
    Not looking to, they did. New rules are published, and most go into effect October 1, 2017.

  6. #5
    Registered User New Member
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    11
    News to me.

    Can someone tell me what will the new rules be?

    Thanks!

  7. #6
    Registered User Senior Member
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    124
    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.

  8. #7
    Registered User Enthusiast
    Posts
    68
    Just greasing the wheels of a cashless society.

  9. #8
    Registered User Senior Member
    Posts
    124
    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>

  10. #9
    Registered User Pro Member
    Posts
    554
    Are we going to undo all the good that the CFPB is trying to do for consumers?

  11. #10
    Registered User Junior Member
    Posts
    49
    Even if they allow overdraft fees, I cannot imagine they will stop rules requiring up front disclosure of all fees.

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