Banks, retailers, online services, and others that issue prepaid cards to consumers will soon have some new rules to follow, including the need to conduct “ability to repay” assessments if they offer credit options. The rules, proposed by the Consumer Financial Protection Bureau, could also bring new regulations to mobile and peer-to-peer payment systems, such as Google Wallet and PayPal, and possibly to virtual currencies.
Earlier this month the CFPB proposed a long-awaited rule intended to expand protections for consumers who purchase and use prepaid cards. The 870-page document covers traditional prepaid cards, including those issued by retailers and reloadable credit cards, known as general purpose reloadable (GPR) cards. It also covers payroll cards, student financial aid disbursement cards, tax refund cards, and government benefit cards.
