Here. This is about the resolution we reported about on Thursday to block the CFPB's prepaid debit cards rule from going into effect. The resolution has now drawn the support of seven senators. Excerpt:
A spokesman for Sen. Mike Lee said that the “CFPB’s prepaid card rule is overly broad” and would increase compliance costs. Those costs “would be borne by the consumers who use this fast-growing product, but it would also stifle innovation in the payments industry,” the spokesman said.
Consumer advocates decried the resolution as a thinly-veiled giveaway to Netspend, a controversial issuer of prepaid cards. Netspend is one of the main opponents of the CFBP’s proposed prepaid card disclosure requirements and would potentially lose up to $80 million annually in overdraft fees imposed on the largely low-income buyers of its prepaid cards, according to the National Consumer Law Center (NCLC).
“It is outrageous that Congress may block basic fraud protections on prepaid cards so that Netspend can keep gouging struggling families with overdraft fees that have no place on prepaid cards,” said Lauren Saunders, associate director of the National Consumer Law Center (NCLC).