Friday, January 3, 2014
The legislation would restrict the fees prepaid card providers can charge cardholders and mandate that providers clearly disclose fee schedules before customers buy cards. The bill would also direct that providers offer consumer protections when prepaid cards are lost, stolen, or when providers go bankrupt.
S. 1867 would:
Menendez stated, "I am reintroducing this legislation to give prepaid card users guaranteed federal consumer protections similar to those debit card users enjoy − for example, protections if a card is lost or stolen − and prevent card companies from hiding behind the fine print to raise their bottom lines at the expense of responsible consumers."
On Dec. 17, 2011, Menendez introduced in the U.S. Senate a similar bill designed to foster consumer protections and eliminate "hidden" fees on prepaid cards. The legislation, called the Prepaid Card Consumer Protection Act of 2011, targeted what Menendez called the "most egregious hidden fees" found on prepaid cards. The bill was also intended to protect consumers' funds if cards are lost or stolen, or if the provider goes bankrupt. In December 2010, Menendez introduced the same bill.
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