The federal Consumer Financial Protection Bureau has again promulgated new consumer-friendly rules, this time for prepaid account users. Prepaid accounts are those where consumers pay for transactions and access funds electronically using a plastic card, often issued by employers.
Up until now, however, consumers had few rights and remedies, using these cards.
The new rules require free and easy access to account information, require error resolution rights and protections for lost cards and unauthorized transactions, and up-front disclosures of costs and other terms and conditions.
For example, before offering credit the issuer must ensure consumer ability to pay; it must provide a monthly billing statement and reasonable time to pay, and limits on late fees and interest charges. Most importantly, there are protections (similar to but not as extensive) for the consumer from unfair practices by issuers like those of regular credit cards.
More information can be found at this link: