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Consumer Financial Protection Bureau seeks to regulate prepaid cards

By  |  May 24, 2012

The Consumer Financial Protection Bureau is seeking comment on what to include in its draft regulation on prepaid debit cards. The regulation will cover general purpose reloadable cards: these are cards that can be restocked with cash after the initial value is drawn down. Richard Cordray, the CFPB’s director, said that prepaid cards do not have the consumer protections enshrined in regulations that traditional debit or credit cards have, such as FDIC insurance.

Public comment is accepted by July 22. The draft will be proposed by early 2013.

Full content: Bloomberg Businessweek

 

Related content: Anticompetitive Regulation in the Payment Card Industry (Ronald Mann, Columbia Law School)

 

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