Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many 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 » N.J. Senator Seeking Approval for The Prepaid Card Consumer Protection Act

N.J. Senator Seeking Approval for The Prepaid Card Consumer Protection Act

By
Add to Favorites:
N.J. Senator Seeking Approval for The Prepaid Card Consumer Protection Act

A new bill proposal known as “The Prepaid Card Consumer Protection Act” has been introduced by United States Senator Bob Menendez, D-N.J., in the hopes of having it referred to the Senate Banking Committee during the next legislative session. Essentially a reincarnation of the bill he recommended to the Senate last year which never quite gained any momentum, The Prepaid Card Consumer Protection Act would make it mandatory for companies to fully disclose all fees pertaining to their prepaid cards to consumers prior to purchase.

According to Senator Menendez, his repeated attempts to regulate the prepaid card industry, which encompasses both prepaid debit and credit cards, is inspired in part by the hidden fees many prepaid cards carry which can ultimately reduce the value of a card by as much as 20%.

“Consumers need to be very careful about using prepaid cards,” said Senator Menendez, according to online news source northjersey.com. “Now that these cards are becoming increasingly popular, Congress needs to act to rein in the high fees and make sure consumers get the protections they deserve.”

In addition to requiring the full disclosure of all card-related fees before purchase, the bill would abolish certain fees – balance inquiry fees, for example – altogether. A wallet-sized summary of fees would be included with each prepaid card.

Celebrity-endorsed prepaid cards such as last year`s controversial Kardashian Kard, have helped draw public attention to the potentially exorbitant fees associated with prepaid cards. In the case of the Kardashian Kard, interested consumers would have had to pay a $99.95 fee simply to acquire it followed by charges to the tune of $1.50 every time a user contacted a customer representative plus an additional $1.50 charge on top of any bank-issued ATM fees when the card was used to withdraw funds. The Kardashians eventually abandoned their prepaid card project amid media uproar regarding the fees.

Prepaid cards of all types have gained popularity in recent years as they provide an opportunity for teenaged consumers and other individuals not in possession of a credit card to be able to make purchases using plastic. Prepaid cards are especially favored by gift-givers around the holidays. According to data cited by Menendez`s office provided by the Mercator Advisory Group, the amount of money loaded onto prepaid cards nationwide is projected to soar from $60.4 billion in 2009 to $233.8 billion in 2012, an increase of 383%.

Add to Favorites:

Related News:

New Digital Wallet From SDCCU

By Dar Dowling, Posted: December 7, 2016

The San Diego County Credit Union (SDCCU) is rolling out their brand new digital wallet app for iPhone users. With the app people can use their phone to safely do their banking, whether that means using their phones to expedite cash ... Continue reading
Free Pizza on Papa John’s & VISA

By Dar Dowling, Posted: December 6, 2016

Eating pizza while watching a football game is a time-honored American tradition, so it’s not surprising that VISA, has teamed up with Papa John’s to give fans a little more this season. If fans use Visa Checkout they can take advantage of ... Continue reading
USAA Digital Wallet Gets an Upgrade

By Dar Dowling, Posted: December 5, 2016

USAA has upped the ante with their digital wallet, making it a bit more like an everyday wallet by adding in six additional features, so people can now include everything from their automobile information to insurance cards in their ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
Earn 1% cash back on gas and grocery purchases. Terms apply.
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit