Protecting Prepaid Card Users

It’s up to Congress.

NewsChannel5 reports:

Currently, prepaid cards are not required to carry the same fraud protections as standard credit or debit cards and can come packed with hidden fees that can quickly reduce available funds.  A new rule finalized by the Consumer Financial Protection Bureau last October sets an industrywide standard on fee disclosures for prepaid cards and requires new, transparent postings right on the package listing the fees the CFPB believes are most important to consumers.  The rule would also strengthen fraud protections for consumers.

“It would really be a tragedy to deprive 33 million households of fraud protection and simple fee disclosures,” said Lauren Saunders, associate director of the National Consumer Law Center, which is trying to fight resolutions introduced in the House and Senate that would do away with the CFPB rule.  The resolutions would exercise a rarely used procedure under the Congressional Review Act that can do away with regulations passed in the final months of a prior administration.  Congress has until May 10 to act on Obama-era rules.

Protecting consumers is up to our Members of Congress. Contact Senator Lamar Alexander and Senator Bob Corker today and ask them to stand up for prepaid card consumers and support sensible protections proposed by the CFPB.

For more on consumer protection issues, follow @TNCitizenAction



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