Please take 5 minutes this week to call Senators Warner and Kaine and urge them not to undo the CFPB regulations that will bring equal legal protections to families who use prepaid cards instead of traditional bank accounts.
Over the last several years, American families have been relying less on traditional bank accounts and credit cards, and more on reloadable payment cards known as “prepaid cards.” The only problem: Prepaid cards have not, until recently, included the same level of legal rights and protections enjoyed by users of bank accounts and credit cards.
Last year, the CFPB issued a final regulation that will, starting in October 2017, extend similar protections to prepaid cards. Most mainstream financial institutions find these regulations reasonable, but there are fringe companies like Georgia’s NetSpend, who stand to lose millions of dollars in overdraft fees if the regulations go into effect. Predictably, Georgia Senator David Perdue has introduced a Joint Resolution (Joint Resolution 19) that would eliminate these protections forever so that NetSpend can continue exploiting this legal vacuum to take “easy money” from American families.
Senator Perdue is utilizing a tool called the Congressional Review Act (CRA), which allows Congress to eliminate a new regulation by a simple majority vote of both houses of Congress.
Success will not only eliminate this version of the regulation but will prevent the CFPB from ever issuing a similar regulation in the future. It is important to contact the senators this week, because this is the last week that the Senate may act use the CRA to eliminate the regulation.
- Senator Tim Kaine: 202-224-4024
- Senator Mark Warner: 202-224-2023
For more information about the regulation and the Congressional Review Act visit:
- NCLC, Summary of the Consumer Financial Protection Bureau’s Prepaid Card Rule
- NCLC, Congress Should Not Block the Consumer Financial Protection Bureau’s Prepaid Accounts Rule
- CFPB, New Prepaid Accounts Rules (video)
For more about Senator Perdue and NetSpend: