October 5, 2016
Contact: Cindy Hoang, National Consumers League, firstname.lastname@example.org, (202) 207-2832
Washington, DC—The National Consumers League (NCL), America’s pioneering consumer and workers’ rights advocacy organization, today welcomed the Consumer Financial Protection Bureau’s (CFPB) publication of new rules designed to enhance consumer protections for users of prepaid cards. The following statement is attributable to NCL Executive Director Sally Greenberg:
“The CFPB has set common-sense rules of the road that will do much to protect consumers in this fast-growing payment space. In particular, we are pleased that the new rules’ anti-fraud provisions will allow prepaid users to enjoy the same protections from unauthorized use that credit and debit card users have depended on for years. At a time when hackers and other criminals are using stolen payment account information to run up billions of dollars worth of fraudulent charges, today’s action will reduce risk for the millions of consumers who depend on prepaid cards. While we are concerned that overdraft fees on prepaid accounts will continue to be permitted under the rules, we are pleased that there are strong new restrictions on the use of such fees by issuers. We urge all prepaid card vendors to work diligently to meet or exceed the CFPB’s consumer protection requirements as far in advance of the October 1, 2017 compliance deadline as possible.”
About the National Consumers League
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.