Newsroom
Pew says prepaid card use up, suggests policies
Prepaid cards were more widely used and became more affordable in 2013 than in years past, according to a new Pew Charitable Trusts report that also presents several policy recommendations as regulators and lawmakers follow the growth of this market.
The report found that consumers who purchased prepaid cards from a bank saved an average of $5 to $14 a month over those who purchased them from nonbanks in 2013. Because of prepaid cards' new popularity – the report found it can often be cheaper to buy a reloadable card than open a savings account at some institutions – Pew offered recommendations for regulators to use when developing rules for prepaid cards, including:
- a prohibition on overdraft or other automated or linked credit features;
- consumer protection against liability for unauthorized transactions;
- consumer access to account information and transaction history; and
- federal insurance against loss caused by the failure of an institution.
CFPB has been looking toward regulating the prepaid market since 2012 and outlined in its regulatory agenda for 2014 that it will address the issue in proposed rulemakings later this year.
Sen. Bob Menendez, D-N.J., introduced a bill in December that addresses some of the above. S. 1867, the "Prepaid Card Consumer Protection Act of 2013," would restrict prepaid card fees, require pre-purchase fee disclosures and provide federal share and deposit coverage for a related new "spending account."
Menendez said this bill will 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.
NAFCU is closely following regulatory and legislative developments for their impact on credit unions.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.