Banking Law News

CFPB Disclosures Sandbox Could Help Prepaid Cards Ditch Paper

Nov. 26, 2018, 10:30 AM

Prepaid account disclosure rules set to go into effect next year have the industry eyeing a new CFPB program that could give companies more leeway over the disclosures.

The prepaid industry has blossomed from gift and payroll cards to recharagable debit-like products from Netspend Holdings, Inc. to hybrid mobile wallet-plastic card products like PayPal, Inc.'s Venmo card. Despite the industry’s move toward more mobile and electronic capabilities, it now faces new paper disclosure requirements for fees and other product details from the Consumer Financial Protection Bureau.

“We want to encourage electronic requirements because that’s where consumers are,” Brian Tate, president...

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