Worries for Prepaid in Dodd's Proposed Financial Agency Legislation
The Network Branded Prepaid Card Association (NBPCA) has released a statement in response to the introduction of the Restoring American Financial Stability Act of 2009 by Senator Chris Dodd (D-CT):
"The Network Branded Prepaid Card Association appreciates the efforts of Chairman Dodd and the Senate Banking Committee to better protect consumer interests. The NBPCA and its members are committed to working with them as this process goes forward. It is absolutely critical that any new regulations not limit access to unique financial products such as prepaid cards, which have become a key tool of financial inclusion for the millions of unbanked and underbanked U.S. consumers who rely on them.
"Specifically, the Consumer Financial Protection Agency proposed under the Act includes deposit-taking language that may lead to the elimination prepaid cards at retail locations. Currently, there are approximately 200,000 non-bank locations across the United States where consumers can either purchase a prepaid card or load funds to the card. This would dramatically decrease, if not eliminate, access to these important products for consumers that need them most, throwing up a new and unnecessary roadblock to the financial mainstream.
"We look forward to working with Congress to ensure regulatory changes are weighed against their economic impact and aligned with the way consumers use the product. Without that balanced view, well-intentioned policy changes could set back progress for financial access and responsibility through the use of prepaid cards."
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