CRL Tells CFPB: Prepaid Cards Lack Consumer Protections
Prepaid cards are an important new financial product that holds the promise of expanding access to modern electronic transactions to millions of consumers. However, prepaid cards lack consumer protections and some have features that expose consumers to unnecessary dangers.
The most important step that the CFPB can take to ensure that prepaid cards fulfill their promise, and to prevent unfair, deceptive or abusive practices, is to ensure that prepaid cards are true to their essence as a prepaid transaction product. Overdraft and credit features must be prohibited on prepaid cards.
Date: July 24, 2012
Issue:Credit Cards, Prepaid Cards
The CFPB should prohibit overdraft and credit features on prepaid cards.