Congresswoman Maxine Waters (D-CA), Ranking Member of the Financial Services Committee, today released the following statement in support of the Consumer Financial Protection Bureau’s (CFPB) newly proposed federal consumer protections for prepaid cards. Waters praised the action, citing an increased reliance on alternatives by the unbanked and underbanked. The Ranking Member also expressed her commitment to working with the CFPB to ensure the rule is finalized in a timely manner.
She released the following statement:
“I’m pleased that today, the Consumer Financial Protection Bureau has proposed new consumer protections for the rapidly growing prepaid card market. According to the FDIC, almost 30 percent of Americans are unbanked or underbanked, and many of them have come to rely on alternatives such as prepaid cards to help them participate in the economy.
Although many lower-income consumers are increasingly turning to prepaid cards to avoid high or unpredictable bank fees, consumer protections have not kept pace. Today’s announcement ensures that Americans using prepaid cards are treated equally, and afforded the same consumer protections, as credit and debit card holders. The CFPB’s proposal is an important step towards ensuring that regardless of what card consumers choose, they are protected through increased transparency, predictability and competition.
I applaud the CFPB for these clear rules of the road, which will help to ensure that everyone benefits from innovative financial products and a growing economy. I look forward to reviewing industry feedback and working with the Bureau to ensure this rule is finalized in a timely manner.”