CFSI Policy Analyst David Newville talks about the need for prepaid cards to have clearer fee disclosure requirements, and ideally a ‘Schumer Box’-type model, in this BAI article.
According to research released earlier this year by the Pew Health Group, 111 pages is the median length of account disclosure documents among the 10 largest banks in the country. If that wasn’t bad enough, these documents are also usually not written or laid out in the most consumer-friendly manner; dense, small text and legalese is more the norm.
Confusing disclosures are bad enough when it comes to checking accounts, but can be even more detrimental when applied to prepaid cards. Users of this product tend to have lower incomes and often live from paycheck-to-paycheck. They need to be able to anticipate the cost of using a specific prepaid product so they can avoid going into the red.
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