We support reforms to the financial marketplace to curb bad practices by banks and lenders.
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
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.
Publications
- Prepaid Cards: Loaded with Fees, Weak on Protections
Prepaid Cards: Loaded with Fees, Weak on Protections
- CU comments to the proposed Department of Treasury’s Interim Rule allowing federal payments to be deposited onto prepaid cards
The National Consumer Law Center, on behalf of its low-income clients as well as the Consumer Federation of America and Consumers Union, submit these comments regarding the Interim Final Rule allowing federal payments to be deposited on prepaid cards. We particularly commend the Treasury Department for the new consumer protections required to be provided to Continue Reading
- Adding It All Up: How Prepaid Card Fees Compare to Checking Account Fees
Adding It All Up: How Prepaid Card Fees Compare to Checking Account Fees Prepaid cards are reloadable cards that can be used just like checking account-linked debit cards and are becoming the foundation of a second tier banking system used by a growing number of consumers. While prepaid cards are becoming increasingly popular, consumers who Continue Reading
- Tips for prepaid card customers
Tips for prepaid card customers • Find and read the fee schedule before you buy the card: Make sure you understand all the different ways you can be charged for using your card. Your cost will vary widely depending on which card you pick and how you use it. • Try to figure out how Continue Reading
- Group letter calls on FDIC to make safe template for prepaid cards
To: Federal Deposit Insurance Corporation SafeAcctPilot@fdic.gov From: Calvert Asset Management, Inc. Consumer Action Consumer Federation of America Consumers Union National Consumer Law Center® (on behalf of its low-income clients) Sergeant Shriver National Center on Poverty Law Re: Safe Transaction Account Template for Prepaid Cards Date: November 24, 2010 Calvert Asset Management, Inc., Consumer Action, Consumer Continue Reading
- Prepaid Cards: Second-Tier Bank Account Substitutes
Prepaid Cards: Second-Tier Bank Account Substitutes Consumers Union, the nonprofit publisher of Consumer Reports ® By: Michelle Jun, Staff Attorney With Consumer Federation of America and National Consumer Law Center, on behalf of their low-income clients September 2010 Prepaid cards are widely marketed as more convenient, safe and cost effective, a straightforward way to manage Continue Reading
- CU comment on “end of checks” proposed rule
Comment on Treasury proposal to amend 31 CFR Part 208.
- Group Comments to FDIC on Safe Transaction and Savings Accounts
Consumer Action, Consumer Federation of America, Consumers Union, National Consumer Law Center (on behalf of its low income clients), and US PIRG welcome the opportunity to comment on the FDIC’s proposed templates for Safe Transaction and Savings Accounts to benefit low and moderate income consumers. Consumers currently in the ranks of the unbanked and under-banked Continue Reading
- Consumers Union submits letter to the Federal Reserve Bank of San Francisco regarding Green Dot’s application to acquire Bonneville Bank
March 25, 2010 Kenneth Binning, Vice President Federal Reserve Bank of San Francisco 101 Market Street San Francisco, CA 94105 RE: Green Dot Corporation Application to Acquire Bonneville Bancorp. Dear Mr. Binning: Consumers Union, the nonprofit publisher of <em>Consumer Reports</em>®, respectfully requests the Federal Reserve Bank of San Francisco to carefully consider the following concerns Continue Reading
- Letter to Federal Reserve asking for same protections to prepaid cards as debit cards
The change is essential to fully apply consumer protections to all prepaid cards and other similar devices which function as bank account substitutes
Press Releases
- 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.
- Report: Prepaid cards come with long list of fees
CU report finds prepaid cards come with multiple fees and offer weak consumer protections
- Feds propose end to checks for benefit recipients
CU urges Feds to let consumers continue receiving benefits by check and to improve electronic payment options
- Rebate cards come with fees and other gotchas
CU offers tips to consumers on getting the most from rebate cards
- Federal Reserve Board urged to limit gift card fees
Consumer groups urge the Federal Reserve Board to limit fees and make gift cards more consumer friendly
Blog Posts
- Suze Orman’s Prepaid Card: What is in the fine print
There has been a lot of buzz around Suze Orman’s new prepaid card. However, a prepaid card is still just a prepaid card and consumers should pay attention to the fine print. Here are some take-aways after looking at the fine print of Suze Orman’s new prepaid card: Fee Summary: Monthly fee $3 (first month Continue Reading
- College Students Raise Concerns About Higher One Card Fees
A small group of students and parents at Western Washington University are taking their consumer rights seriously.
- Great New Coverage On Our Prepaid Card Campaign
Watch the video “ConsumerWatch: Prepaid Reloadable Cards May Come With Fees” featuring our own Michael McCauley
- New “Club América” Prepaid Card Takes Aim at Soccer Fans
A new prepaid card endorsed by the Club América soccer team is being marketed to soccer fans in the U.S. Goal…or foul?
- The Kardashian Kard May Be a Goner – After Only 3 Weeks!
The Kardashian sisters are backing out of their contract to promote their prepaid “kard,” after receiving massive criticism in the media and a warning from a state attorney general. Looks like not all publicity is good publicity!
- Don’t Try “Keeping Up” with the Kardashians’ New Prepaid Card
Consumers Union has looked at the new Kardashian Kard, and finds that the card comes with the same gotcha fees and weak consumer protections as other prepaid cards on the market.
- Look Out for This One: The New, Expensive “Mi Promesa” Prepaid Card
The new “Mi Promesa” prepaid card is being marketed to the Latino community as a new product that will serve their needs better than a traditional bank. But consumers need to know that this card comes with a hefty price tag and some outrageous fees.
- UPDATED: Prepaid Card Tips for Consumers
Consumers Union releases its updated report on prepaid cards and offers tips for consumers.
- Back To School: Campus Financial Tips
Tips for Bank Accounts, Credit Cards, and Prepaid Cards for college students
- Mobile Payments Need Strong Consumer Protections
Today’s American Banker featured a Viewpoint article by Gail Hillebrand and Mark MacCarthy on the need for strong uniform payment protections for consumers, particularly on mobile payments.
Worried about retirement?
The stock market has been unusually volatile, plunging hundreds of points, creeping back, only to plunge again. It is hard to stay disciplined about saving when every dime you’ve invested can evaporate in a day.
What is your biggest concern about your own retirement? We want to hear from you.
Where to complain
Online, by mail, phone or fax... Agencies need to hear from you!