CFPB Issues New Proposed Rules For Prepaid Debit Cards

On November 13, the Consumer Financial Protection Bureau unveiled a comprehensive slate of consumer protections for prepaid debit cards that could increase the customer base for the financial product.  The proposed rules (found here) are the most comprehensive set of federal standards for the fast-growing prepaid industry.  Consumers are expected to load nearly $100 billion onto general-purpose prepaid cards this year, up from $19.5 billion six years ago.

The CFPB announced that the proposed rule would require companies selling the cards to limit consumers' losses when funds are stolen or the cards are lost, to investigate and fix errors, to provide free access to account information, and to apply credit card protections if credit is offered in connection with the prepaid account.  Companies would be required to provide standardized disclosures about prepaid account fees, including the monthly fee, fee per purchase, ATM withdrawal cost, and fee to reload cash to the