April 20, 2015
Fifteen student, consumer, civil rights, and labor groups co-signed a letter (4 pages) in support of the Consumer Financial Protection Bureau's proposed rule on prepaid cards. The groups suggest that the new rule would support similar actions by the Department of Education, aimed to protect students using prepaid cards.
- College students are a key segment of the prepaid market – but prepaid cards lack essential consumer protections
- Exclusive revenue-sharing and other marketing agreements between colleges and prepaid card issues exacerbate the lack of consumer protections
- Overdraft fees on prepaid card would pose a particular harm to students and should be banned
- The Bureau should enact strong prepaid protections
- The Bureau's rules should harmonize with the Department of Education's rules to provide full protection to students