Increasingly, underserved Americans are turning to prepaid cards to meet their basic financial services needs. Functioning much like electronic banks accounts without checks, general purpose reloadable, or GPR, prepaid cards can be used make purchases, pay bills, access cash, monitor one’s finances, budget, save, and more. But prepaid cards have a significant weakness—their consumer protections do not serve current and prospective users well. CFSI believes a clear and effective fee disclosure box is an essential part of a high-quality prepaid product and bolsters prepaid as a valuable financial access tool. To that end, CFSI released a research paper outlining the need for improved disclosures through a standardized fee box. Three prepaid card providers - Green Dot, Plastyc, and Ready Credit - have already committed to adopt or test CFSI's proposed disclosure box. CFSI also calls on regulators to improve disclosures and other consumer protections for prepaid cards.
Click here to read CFSI's full research paper and to see the suggested fee disclosure box.
Click here to read the accompanying press release.