Prepaid debt card firms test new fee disclosures

Prepaid card companies to test new fee disclosure box aimed at clarifying costs to consumers

Associated Press

WASHINGTON (AP) -- Three major issuers of prepaid debit cards are preparing to test a new fee disclosure box designed to help people understand the costs of using cards to access their money.

A non-profit group focused on consumers who don't have bank accounts proposed the box on Tuesday to improve the transparency of the increasingly popular cards, which are similar to debit cards but are not attached to an underlying checking account.

The Center for Financial Services Innovation also called on regulators to improve disclosures and other consumer protections for prepaid card users.

CFSI is funded in part by banks and other financial companies that offer financial products and services for people who don't have bank accounts.

The companies testing the box are Green Dot Corp., Plastyc Inc. and Ready Credit Corp.

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