Changes and Reforms Coming to the Prepaid Card Industry
There may be changes coming soon for prepaid cards. In fact, compared to credit cards there are far fewer regulations on prepaid cards. In fact, the Consumer Protection Agency is interested in talking to consumers in learning what should be included in the new set of regulations.
“Right now, prepaid cards have far fewer regulatory protections than bank accounts or debit or credit cards,” according to the bureau’s director, Richard Cordray
On July 22nd the agency will listen to individuals who have or had prepaid cards. The hope is to get a better grasp on what practices are negatively affecting consumers. The new rules will affect the profits of many of these prepaid card companies. It is unsure exactly how, but the new regulations may limit a number of fees a company can charge. Also, new rules may be put in place as to where the terms and conditions need to be displayed.
The other main issue being explored is that prepaid cards do not have the same protections as credit cards. For example, if the money is lost or stolen it may not be insured. All of the proposed changes are in the very early stages. An early draft of the regulation is expected to be ready in the first part of 2013.
These Corporations Issue Some of the Most Familiar Prepaid Branded Cards
Manufacturers and Traders Trust Company
Green Dot Corporation
BANKFIRST
MetaBank
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