More Protection for Prepaid Debit Cards Sought by... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » More Protection for Prepaid Debit Cards Sought by Consumer Advocates

More Protection for Prepaid Debit Cards Sought by Consumer Advocates

More Protection for Prepaid Debit Cards Sought by Consumer Advocates

Seven consumer advocacy groups, the Center for Responsible Lending, Consumers Union, U.S. PIRG, National Consumer Law Center, Center for Public Policy Priorities, Coalition of Religious Communities and SC Appleseed Legal Justice Center, have joined together to issue a call for the Consumer Financial Protection Bureau to increase the consumer protections that come with prepaid debit cards.

Some of the protections the groups are calling upon the CFPB to make mandatory for prepaid cards are:

That a clear, up front disclosure of all fees associated be made available to the consumer prior to obtaining a card; The elimination of overdraft fees on all prepaid cards; The right for consumers to receive statements and other forms of information pertaining to their transactions; Caps on the amount of money cardholders can lose should their card be lost or stolen and used to make unauthorized charges; Guarantee the prompt crediting of missing money no later than 10 business days from when problem is reported by the consumers.

Michelle Jun, the senior attorney for Consumers Union explained in a press release why the advocacy they are now calling for these changes to be made.

“As the cost of bank accounts continue to rise, more and more consumers are turning to prepaid cards as an alternative. But prepaid cards offer weaker protections than bank accounts and can be loaded with hidden fees that make them costly to use,” stated Jun.

Currently, consumers using prepaid cards are only availed of voluntary protections extended by card issuers in the event their card gets lost or is stolen and then used to make unauthorized purchases. Such protections are subject to change at any time and often come with loopholes. Additionally, the fees attached to prepaid cards are typically poorly disclosed, which makes the cost of using these cards much higher for consumers than they expect.

The implementation of the additional protections would make the safety of using a prepaid debit card much more similar to using a regular debit card that is linked to a checking account. More and more consumers are turning to prepaid debit cards to as the cost of banking steadily increases.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

New SPG Amex Luxury Card Arrives This Summer

Posted: April 26, 2018

The Starwood Preferred Guest American Express Luxury card is coming this August, along with the new SPG and Marriott combined rewards program. This card offers 6x the points when booking stays at SPG and Marriott Rewards hotels and 3x ... Continue reading
Masterpass Comes to BJ’s Wholesale Club

Posted: April 25, 2018

Have you been wondering when you would be able to use Masterpass, to check out at BJ's Wholesale Club? If you have, you don't have to wonder any more. The pair recently inked a deal, bringing Masterpass, MasterCard's digital wallet, to ... Continue reading
A New Unified Marriott and SPG Rewards Program is Coming

Posted: April 24, 2018

When Marriott acquired SPG, it was unclear what would happen with their rewards programs. But now the cat is out of the bag. SPG, Marriott Rewards and Ritz-Carlton Rewards will all become one loyalty program this August. At that point, all ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!