We support reforms to the financial marketplace to curb bad practices by banks and lenders.
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
- 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
- Prepaid Cards
Have you run into fees and other problems with prepaid “debit” cards?
- California Unemployment Insurance Card
Government agencies are issuing payments on plastic cards that resemble and act like debit cards. Consumers should have access to their funds without bearing additional cost and have strong protections against fraud and loss.
- Gift Cards
Do you have gift cards you can no longer use?
- 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.
- OCC response on prepaid cards and FDIC insurance coverage
Per Consumers Union letter, Comptroller of the Currency responds regarding prepaid cards.
- Letter to the Comptroller of the Currency regarding stored value cards
Consumers should have peace of mind that the funds on their prepaid cards are protected.
Press Releases
- 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
- Report: Prepaid cards come with high fees
CU finds prepaid cards are loaded with costly fees and have weak protections for consumers
- Report: Prepaid cards come with high fees
CU finds prepaid cards are loaded with costly fees and have weak protections for consumers
- Gas consumers to get relief on debit card holds
VISA announces plan to reduce debit holds at the pump; CU calls on MasterCard to do the same
Blog Posts
- 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.
- The end of SS, SSI, VA checks is NOT yet a done deal!
The Department of Treasury has proposed to end federal payments by check beginning March 2011 for new recipients and March 2013 for existing beneficiaries–substituting direct deposit or deposit onto prepaid cards.
- Senate debate on financial reform heats up
Now that the Senate floor debate on financial reform has started in earnest, supporters are ofering a number of amendments to strengthen the bill so that it better protects consumers from unsafe financial products and creates new rules to stop banks from getting so big that they could threaten the financial system.
- What do the new gift card rules mean for you?
Starting August 22, 2010, consumers will have additional protections on bank-issued gift cards which are gift cards branded with Visa, MasterCard, AmEx, Discover, and retailer issued which are store gift cards (if your state doesn’t already provide strong retailer issued gift card protections):
- New Gift Card Protections May Be Coming Your Way
Today, we told the Fed what we want for the holidays, and for every other time we give and receive a gift card:
- Back to Basics: Using Your Debit Card
When you use a debit card to make a purchase, the cashier will often ask, “Debit” or “Credit?” What does this mean?
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!