A relatively new government agency recently turned its attention to the prepaid debit card industry, in an effort to examine whether or not consumers were being misled.
The leadership of the Consumer Financial Protection Bureau (CFPB) stated at a recent event that it would be looking into ways to regulate the industry and protect those who decide to use the merchant services-related cards. The head of the CFPB, Richard Cordray, stated that consumers who used the cards were entitled to have certain rules disclosed. He also said that the issue was important based on the fact that so many poor people used them.
“The people who use prepaid cards are, in many instances, the most vulnerable among us,” said CFPB Director Richard Cordray in a statement. “Yet right now prepaid cards have far fewer regulatory protections than bank accounts or debit or credit cards.”
In February, the CFPB made other headlines when it announced that it would be examining whether overdraft fees charged to checking account users were unfair to consumers.Back To Blog