The US Consumer Financial Protection Bureau (CFPB) is expected to unveil slew of consumer protection measures to further safeguard the interest of prepaid card users in the country.
The proposed rules will have standards for how prepaid card companies disclose fees and make it harder for users to spend more money than they have loaded onto the card, reports the Wall Street Journal.
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CFPB is expected to issue a standard template for fee disclosure, similar to the nutrition information on food labels. It is also expected to require that consumers are protected from unauthorized transactions as they are with traditional credit and debit cards, the newspaper said.
The regulator is also likely to set limits on overdrafts, which allow customers, for a fee, to spend more money than they have loaded onto the card, the report said.
The rules are being proposed as a large customer base use prepaid card and traditional financial institutions such as JP Morgan and American Express are pushing into the business, forcing down prices, the publication said.
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