Tuesday, March 25, 2014
In a March 18, 2014, blog post, a CFPB representative said disparate retail packaging can complicate consumers' ability to compare competing products. "Currently, each prepaid card company's retail package discloses different information, which makes it difficult to do side-by-side comparisons," the post noted.
The CFPB said it started field testing two potential disclosure models in Baltimore in February 2014. The week starting March 17 the CFPB began field testing in Los Angeles as well, with a third location to be the site of continued testing next month.
"The model forms would provide a standard format for disclosing certain fees, including, among others, monthly, reload, per purchase, ATM withdrawal, and inactivity fees," the CFPB said. "The two models primarily differ in design—the fees included on the two test models are identical, but for a 'decline' fee, which appears only on one of the models."
Following the testing and consumer feedback, the CFPB said it expects to propose standardized disclosure guidelines "later this spring."
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.