The Consumer Financial Protection Bureau announced yesterday that it is working on new disclosures that will offer much-needed protections for consumers who use prepaid cards. Right now, the CFPB is constructing a model disclosure form so that consumers can understand the different fees and make a more informed decision when obtaining one of these cards.
The CFPB says the disclosure development is part of a bigger project that will offer several protections for prepaid card users. The bureau estimates that a rule on this topic will be proposed by late spring.
The bureau is updating prepaid card disclosures because right now the disclosures that accompany prepaid cards from various companies contain different information, thereby making it harder to compare cards. In an effort to create an effective disclosure, the CFPB is conducting nationwide interview testing with consumers. Testing is expected to be complete by April.
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