Newsroom
Prepaid card bill creates new 'spending account'
Legislation to restrict prepaid card fees, require pre-purchase fee disclosures and provide federal share and deposit coverage for a related new "spending account" was introduced Dec. 19 by Sen. Bob Menendez, D-N.J.
Carrie Hunt, NAFCU's senior vice president of government affairs and
general counsel, said the association "will carefully review the bill
and, if necessary, work with policy makers to mitigate any regulatory
burden."
S. 1867, the "Prepaid Card Consumer Protection Act of 2013," is similar to bills Menendez introduced in 2010 and 2011. Menendez says it would provide Electronic Funds Transfer Act protection in the event a prepaid card is lost or stolen, and provide for federal share or deposit insurance (from NCUA or FDIC) if the card company goes bankrupt.
In his announcement, Menendez cited 2012 findings by Pew Charitable Trusts on how much consumers spend yearly on prepaid cards, from an average low of $340 a year to nearly $1,300.
S. 1867 would create a new category of consumer depository institution account, called a "spending account," that would have federal share or deposit insurance. Such accounts would be available to hold funds for reloadable, general-purpose prepaid cards; and for certain nonreloadable, general-purpose prepaid cards holding more than $250.
The spending account could not be used for prepaid items such as gift cards, gift certificates or federal health care savings, among other things. The bill also addresses employee wages and federal benefit payments and spells out notice and disclosure requirements.
If the bill were enacted, CFPB would have 12 months to issue regulations and complete a plan for a study. The study would focus on the short- and long-term economic well-being of consumers at different income levels who use spending accounts instead of traditional accounts as their primary means for conducting financial transactions.
Sens. Richard Blumenthal, D-Conn., and Jeff Merkley, D-Ore., are cosponsors.
Share This
Related Resources
Add to Calendar 2024-04-24 14:00:00 2024-04-24 14:00:00 Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage About The Webinar Join us to learn more about network lending, a cooperative model allowing credit unions to optimize liquidity and achieve loan growth. Discover how credit unions can participate in loan pools with other institutions, allowing them to diversify portfolios, access loans with potentially lower risk and higher yields, and expand lending capacity without necessarily needing a surge in deposits. Delve into how credit unions can pool their resources, set common underwriting and pricing standards, and collectively originate, buy, and sell loans to optimize liquidity management. Hear from your peers about best practices, case studies, and practical strategies to harness the full potential of network lending and how it's helped their credit unions. Don't miss this valuable opportunity to learn how to strengthen your credit union's position in today’s competitive environment. Key Takeaways: How network lending differs from traditional lending The benefits of participating in loan pools with other credit unions How credit unions can set common underwriting and pricing standards and collectively originate, buy and sell loans to optimize liquidity management Why network lending is critical to loan growth Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage
preferred partner
LendKey
Webinar
Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks. Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 23, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Monitoring the Latest Litigation Risks
Credits: NCCO, NCRM
Webinar
Add to Calendar 2024-04-23 09:00:00 2024-04-23 09:00:00 Operational Agility: Key Factors for Success in 2024 and Beyond Listen On: Key Takeaways: [02:34] A lot of people think of fraud losses and they are very mindful of what that means for their organization and their bottom line but we are thinking about it from a cost perspective beyond that. [06:38] When you should engage has a lot to do with how long it would take to potentially replace your current service provider. [10:45] Sidecar is not your primary core solution but it is something that allows you to go to market maybe under a different brand or different set of technology. [15:21] Focus on the tech stack maybe a little bit more than you used to. Enable that tech stack to allow you to be agile going forward and you will be able to focus a lot more on the member than running an IT shop Download SRM's Focus on Operational Agility to Achieve Success in 2024 Report Web NAFCU digital@nafcu.org America/New_York public
Operational Agility: Key Factors for Success in 2024 and Beyond
preferred partner
Strategic Resource Management
Podcast
Resiliency In Your Incident Response Plan
Cybersecurity
preferred partner
DefenseStorm
Blog Post
Get daily updates.
Subscribe to NAFCU today.