Bureau testing prepaid card disclosure forms
March 21, 2014 – In advance of an expected rulemaking on prepaid credit cards this spring, CFPB is requesting comments on two models of disclosure forms intended to replace current prepaid card companies’ disclosures, which the agency says are confusing and difficult to use for comparisons.
In a blog post, CFPB Senior Counsel Eric Goldberg offered examples of the information shown on different prepaid card companies’ retail packaging. He explained that the bureau is developing a model for disclosure forms in order to standardize the information given by prepaid card companies so consumers can better compare and contrast what the companies offer.
The CFPB conducted interviews with consumers in Baltimore last month and is now testing the model forms in Los Angeles. Goldberg requested comments from the public on the forms – specifically on how understandable the forms’ information on card costs are and what might be changed to make that information clearer.