A Clash Over Payroll Cards

August 26, 2013
American Banker 
credit card news

The New York attorney general's office is probing complaints about fees on payroll cards, and some U.S. senators are calling for increased regulation. But the industry is becoming more popular with both employers and banks, in part because loading the cards saves employers money compared to issuing paper checks. Critics, however, claim that monthly fees for wage-earners are too high and that the employees are forced to accept payroll cards even though they may not have a bank account. A Federal Reserve study pegs monthly fee income per card at about $1.75, meaning the banking industry could generate more than $120 million in payroll card fees this year.
Web Link -
May Require Paid Subscription

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.