Groups Prod CFPB To Ban Credit Features On Prepaid Cards

Law360, New York (July 26, 2012, 3:27 PM EDT) -- Consumer advocates on Tuesday urged the U.S. Consumer Financial Protection Bureau to ban overdraft fees, payday loans and other credit features on prepaid cards, claiming they exploit an already vulnerable group of consumers that rely on the cards.

As the CFPB mulls new rules to regulate the prepaid card market, consumer groups said in separate sets of public comments that mixing credit and prepaid deposits undermines the integrity of the prepaid market and the safety of the consumers — who typically either do not have a...
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