We found a couple of cards marketed specifically for parents to use to help teach children about money management. The fees were ridiculous and ever-present.
Prepaid cards are the newest plastic payment cards. They look like debit cards with a logo from a major card network. Consumers are likely to purchase these cards for a fee, and often pay additional fees to use the prepaid funds loaded onto the card to make purchases or pay bills. These cards function much like a debit card linked to a bank account, but do not have the same guaranteed consumer protections. Gift cards issued by a retailer have different laws. Click here to learn more.
- Prepaid Cards: How They Rate 2014
REPORT – Prepaid Cards_How They Rate 2014 Prepaid cards have rapidly become essential plastic. General purpose reloadable prepaid cards look and work like bank debit cards except no bank is required. Moreover, prepaid cards do not come with the federal consumer protections that consumers with bank debit cards enjoy. But consumers continue to choose prepaid Continue Reading
- Consumer Reports: Tips for Using Prepaid Cards
If you are wondering how to shop for a prepaid card or how to use one, here are some tips you may find helpful.
- CU Urges Dept. of Education to Protect College Students Using Campus Debit Cards
This memo explains the varying protections that apply to debit and prepaid cards, and urges the Department of Education to provide strong protections to students using “campus debit cards” to access their financial aid. Read full memo here.
- Prepaid cards: How they rate
Prepaid cards are mainstream financial products, widely used and relied upon by consumers. Consumers Union, the policy and advocacy division of Consumer Reports has tracked the prepaid marketplace as it has matured.
- Consumer Tips for Using Prepaid Cards
What is a prepaid card? A prepaid card is a plastic card that you “load” with money that you can then spend at stores and online. When you buy the card, you load money onto it. Then, when you use the card, you spend the money. You can add money to the card and keep Continue Reading
- CU letter to the National League of Cities on hybrid municipal prepaid cards
CU is concerned that some prepaid cards issued recently by cities do not provide consumers with the kind of fair deal consumers deserve
- CU letter to the International City/County Management Association on hybrid municipal prepaid cards
CU is concerned that some prepaid cards issued recently by cities do not provide consumers with the kind of fair deal consumers deserve.
- Comments to the CFPB on Prepaid Cards
FINAL Cmt ANPR Prepaid 7.23.12
- CU Comment on electronic payments for federal financial aid
- Prepaid Cards: Loaded with Fees, Weak on Protections
Prepaid Cards: Loaded with Fees, Weak on Protections
- CFPB’s Proposed Prepaid Card Rules Offer Important Protections For Consumers
Thursday, November 13, 2014 Consumers Union Urges Financial Watchdog to Adopt Additional Safeguards WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) is proposing new rules today governing prepaid cards that will help ensure consumers are treated more fairly and get a good value, according to Consumers Union, the policy and advocacy division of Consumer Continue Reading
- Consumer Reports Rates Best & Worst Prepaid Cards
Wednesday, November 12, 2014 Report Issued on Eve of November 13 CFPB Field Hearing on Prepaid Cards; Consumers Union Calls for Reforms to Better Protect Consumers YONKERS, NY – Prepaid cards have become an increasingly popular payment option but it can be challenging for consumers to determine which cards are the most affordable and easiest Continue Reading
- Consumer Reports rates prepaid cards for value, convenience, safety & disclosure of fees
July 30, 2013 Consumer Reports Rates Prepaid Cards For Value, Convenience, Safety & Disclosure of Fees Many Cards Have Dropped Fees & Offer Convenient Features But Fee Disclosure Is Still Poor and Consumers Lack Important Legal Safeguards Compared to Debit Cards YONKERS, NY – For the first time ever, Consumer Reports has ranked the best and worst Continue Reading
- Consumers Union urges cities to avoid unfair prepaid card practices
CU raises concerns about high fees and weak protections as cities begin issuing prepaid cards
- CFPB considering new prepaid card protections
Financial watchdog announces plan to develop better fee disclosure and other protections for consumers
- Prepaid cards: Loaded with fees, weak protections
Consumer Reports finds prepaid card fees can add up and consumers lacking strong protections
- CFPB urged to enact prepaid card protections
CU: Consumers need the same protections for prepaid cards that come with traiditonal debit cards
- Prepaid cards costlier than basic checking accounts
Consumers Union finds checking accounts are cheaper and provide stronger protections than prepaid cards.
- Kardashian sisters back out of prepaid card deal
Consumers Union calls for stronger prepaid card protections for consumers
- Kardashian Kard: Weak protections and fees
Consumers Union highlights the downsides of prepaid cards and offers tips to consumers.
- Who Uses Prepaid Cards? Studies Say Millennials
The largest generation appears to be using prepaid cards. A spring survey by TD Bank found that one in three millennials uses a prepaid card, echoing the findings of an earlier study by the Federal Reserve Bank of Philadelphia. Prepaid cards look and work much like traditional debit cards, but aren’t linked to a traditional Continue Reading
- A Better Day for Mobile Pay? Google Wallet Adds FDIC Insurance
Good news for consumers who store funds directly in a Google Wallet: your funds are will soon be protected by Federal Deposit Insurance Corporation (FDIC) Insurance, according to press reports. In general terms, deposit insurance makes sure that consumers don’t lose money if the bank where their money Continue Reading
- Consumer Reports Releases 2014 Prepaid Card Ratings
Prepaid cards have rapidly become essential plastic. General purpose reloadable prepaid cards look and work like bank debit cards except no bank is required. Moreover, prepaid cards do not come with the federal consumer protections that consumers with bank debit cards enjoy. But consumers are choosing prepaid cards in ever growing numbers. Today, these cards are Continue Reading
- Richmond’s Prepaid Card: Consumers May Do Better Elsewhere
Last week, the city of Richmond, California, launched an identification card that comes with an optional prepaid card feature. It’s run by the same company behind the Oakland City ID-prepaid card hybrid that launched last year. We were critical of the original Oakland ID-prepaid card because the prepaid card was loaded with fees, making it Continue Reading
- No Overdraft Checking Account Coming To Walmart
Green Dot’s mobile bank account, GoBank, will soon be available at Walmart stores. We think this is good news for consumers, as GoBank offers transparent, low-fee, no-overdraft, fully-federally protected checking accounts. Recently a number of banks, including Bank of America, Key Bank and Citi, have begun to offer low-fee, no overdraft accounts. As with GoBank, Continue Reading
- Banks Fight Claims They Have “Secretive” Contracts with College Campuses
Are you or someone you know preparing to go to college? If so, you many find banks and other financial firms offering you student accounts for getting your financial aid or managing your money. That’s because more and more colleges are entering into agreements with these firms to sell products to students on campus. The Continue Reading
- Some Californians’ Prepaid Cards Getting New Legal Protections
Is it a sign of good things to come from the CFPB? Some California consumers receiving child support deposited to prepaid cards are getting new protections thanks to a bill recently signed by California Governor Jerry Brown. For some consumers, a California state agency collects child support then directs it to the recipient’s account. AB Continue Reading
- Prepaid Card or Pawn Complaint? The CFPB Is Ready to Help
Since it began accepting consumer complaints in July 2011, the Consumer Financial Protection Bureau (CFPB) has helped hundreds of thousands of consumers resolve issues with loans, bank accounts, and other financial products. Now, it’s ready to help consumers with prepaid cards and non-bank financial products, such as pawn and car title loans, and credit repair Continue Reading
- Let the Consumer Financial Protection Bureau Continue To Do Its Job
(Cross-posted from Consumer Reports Online in an article by Stephen Saltzman) On July 21, the Consumer Financial Protection Bureau will mark its fourth anniversary. The consumer financial watchdog, created by Congress in the wake of the financial crisis caused by shady mortgage lenders and Wall Street abuses, has done a lot for consumers in just Continue Reading
- Suze Orman’s Prepaid Card Is Going Away July 1, 2014
What Cardholders Should Do Now Launched to great, um, fanfare, not more than 36 months ago, Suze Orman’s prepaid card, the Approved Card, is closing up shop. While the personal finance guru has been silent about this development, cardholders report receiving letters that say that the Approved Card will no longer work after July 1, Continue Reading