[I]nnovation can bring great benefits to consumers and can provide those outside the traditional banking system with more access to financial products that meet their needs.Cordray noted that the unbanked and underbanked have driven the growth in prepaid cards, and they especially need products whose costs and risks are clear upfront.
But we have a duty to make sure these products are safe for consumers and that prepaid card issuers do not make money by relying on tricks or traps that are unsustainable for cardholders.
Yesterday, we posted on the CFPB's filing of an Advance Notice of Proposed Rulemaking (ANPR) requesting comments on general purpose reloadable (GPR) prepaid cards, as the bureau considers extending Regulation E protections to GPR cards. At the field hearing Cordray also spoke of the ANPR.
Read more regarding the ANPR.
Read Cordray’s full speech.
Watch the field hearing on CFPB's blog.