CFPB to Propose New Rules for Prepaid Debit Cards

From: The Wall Street Journal

Holders to Have Limited Ability to Borrow Money, Protections Against Lost or Stolen Cards

By Alan Zibel And Robin Sidel

WASHINGTON—Consumers who use prepaid debit cards would have limited ability to borrow money but would receive protections against lost or stolen cards and easy access to account information under a Consumer Financial Protection Bureau proposal.

The proposed rules, to be released Thursday, are the most comprehensive set of federal standards for the fast-growing prepaid industry. Consumers are expected to load nearly $100 billion onto general-purpose prepaid cards this year, up from $19.5 billion six years ago, according to Mercator Advisory Group Inc., a consulting firm that focuses on the payments industry.

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