prepaid cards

CFPB’s proposed regulations will make prepaid cards safer, but need to be stronger

More consumers are using prepaid cards, but the industry is still lightly regulated, meaning consumers can be hit with unexpected fees and other harmful features. In 2012, consumers loaded $65 billion onto prepaid cards with 9.2 billion transactions. Fees can occur in a variety of ways, including balance inquiries, ATM withdrawals, and customer service calls. Essentially, some consumers have to pay to manage their money and access card features.

Comment letter to the Consumer Financial Protection Bureau on regulating prepaid cards

Woodstock Instituted submitted comments to the Consumer Financial Protection Bureau (CFPB) regarding its proposed rule to regulate the prepaid card market. Despite being one of the fastest growing payment types in the country, the industry remains largely unregulated. Woodstock commends the CFPB for proposing strong rules to ensure consumers have access to safe and affordable financial products.

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