Basic account protections extended to prepaid cards

The Bureau that never sleeps is at it again.

Yesterday it  released final regulations extending basic account protections and to prepaid cards.  The regulations take effect next October. The rule generally applies to general use reloadable prepaid cards.  It is intended to provide  card users with  protections against  loss and unauthorized use similar to those provided to credit card users.

Conceptually, Director Cordray has a point on this one. For an increasing number of Americans prepaid cards are their bank accounts. Right now these are the most unregulated consumer financial product in the country. It makes sense to ensure that they have the some of the basic rights and protections afforded to traditional account holders. As always. however, we wont know the regulation’s full impact until stakeholders have time to go over the 1,600 pages accompanying the final rule.

continue reading »