Consumer Bureau: Prepaid Card Restrictions Coming

November 12, 2013
The Hill 
credit card news

Responding to questions at a Nov. 12 hearing on Capitol Hill, the director of the Consumer Financial Protection Bureau pledged greater checks on the prepaid card business. Prepaids "fall in the cracks" in terms of current federal regulation, CFPB head Richard Cordray told the Senate Banking Committee, calling the situation highly "problematic" given the product's booming growth of late. Hidden fees and exorbitant costs are two of the biggest concerns associated with prepaid cards. "It's very important that we put in place regulations or legislation -- either way -- that make sure that consumers have the benefits of disclosures" and other protections, Cordray declared. The CFPB has already put the product under its microscope, warning employers earlier this year not to force workers to use prepaid cards instead of paychecks to access their wages.

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