Prepaid cards that allow you to overdraft your account for a hefty fee could soon face extinction if federal regulators and Democratic lawmakers get their way. Earlier this month, Senator Jeff Merkley introduced a consumer protection bill dubbed Stopping Abuse…
The Consumer Financial Protection Bureau intends to issue regulations on prepaid cards’ high-priced overdraft loans, so, as usual, it opened up an avenue for public comment. The outcry, however, is far from usual, as more than 500 customers of the prepaid company Netspend — after some prompting from the company — flooded the CFPB with comments. Nearly all pleaded to keep their high-priced loans, often with a tinge of desperation.
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