Last week, a coalition of 26 consumer groups, civil rights advocates, and community organizations submitted comments to the CFPB urging it to issue regulations banning overdraft fees and short-term, small-dollar loan features on prepaid cards. Among those groups submitting comments were the National Consumer Law Center, the Consumer Federation of America, and the Center for Responsible Lending.… Continue Reading
prepaid cards
Some further thoughts on the CFPB’s proposed rulemaking with regard to reloadable prepaid cards
On May 23, 2012, the CFPB published an advanced notice of proposed rulemaking (ANPR) that proposes to extend Regulation E protections to GPR cards. The CFPB’s release of this ANPR coincided with the CFPB’s scheduled hearing in Durham, North Carolina on the same subject. We previously issued an e-alert summarizing the ANPR and wanted to provide some further thoughts and commentary on the ANPR.… Continue Reading
CFPB begins rulemaking process for general purpose prepaid cards
Today, the CFPB issued an Advance Notice of Proposed Rulemaking (ANPR) in which the CFPB states that it “intends to issue a proposal to extend the Regulation E protections” to general purpose, reloadable prepaid cards (GPR cards). In the ANPR, the CFPB requests public input on ten questions it has grouped into four categories: (1) regulatory coverage of GPR cards (2) GPR card fees and disclosures, (3) GPR card features, and (4) other information on GPR cards.… Continue Reading
CFPB to hold May 23 field hearing on prepaid cards: an ominous sign?
The CFPB has announced that it will be holding a field hearing on prepaid cards in Durham, North Carolina on Wednesday, May 23, 2012. Director Cordray will be delivering remarks and testimony is expected from consumer and civil rights groups, industry representatives, and members of the public. The event is open to the public but an RSVP is required, which can be sent to cfpb.events@cfpb.gov… Continue Reading
In calling for increased regulation of reloadable prepaid cards, consumer groups should be careful what they wish for …
By Jeremy T. Rosenblum and Stefanie H. Jackman
Recently, the Consumers Union, Center for Public Policy Priorities, Center for Responsible Lending, Coalition of Religious Communities, National Consumer Law Center, SC Appleseed Legal Justice Center and U.S. PIRG called on the CFPB to extend various protections afforded to debit cards under the Electronic Fund Transfer Act and Regulation E to reloadable prepaid cards.… Continue Reading