Monday, June 29, 2009

Consumer Advocates Want Prepaid Card Restrictions

Kristina Peterson of WSJ/Yahoo Finance reports that new credit card legislation enacted by President Obama is not set to cover prepaid cards. Peterson reports that, "Consumer advocates want to change that. They are urging the Federal Reserve to strengthen guidelines affecting prepaid cards from companies such as Inc., Green Dot Corp., NetSpend Corp. and Inc. while the Obama administrations focus remains concentrated on regulating the credit-card and banking industries. Unlike credit cards, prepaid reloadable cards aren't covered by the federal statutes that protect credit-card holders from fraud or limit their losses when cards are lost or stolen. Though many prepaid card companies do offer some consumer protections, they do so voluntarily. "

Should more restrictions and consumer protection be placed on prepaid cards?

A Push to Regulate Prepaid Cards

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