US prepaid debit card users to get federal protections
New rules shed light on a product that is often the subject of complaints
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PREPAID debit cards are a financial lifeline for many people, but a risky one. They lack many of the basic consumer protections that credit cards and bank debit cards are required to offer. That will change next year, with a raft of new federal rules intended to clamp down on a product that has been growing rapidly despite concerns about high fees, poor disclosures and weak protections for customers when something goes wrong.
Beginning in October 2017, packages containing prepaid debit cards - which are typically sold in convenience stores and other establishments - will be required to carry a standardised disclosure of the card's monthly fee. They will also have to detail charges for cash withdrawals, customer service calls, reloading the card and other activities.
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