In 2016, the CFPB issued a rule addressing prepaid cards, which are cards that work like debit cards but are not associated with a bank account. Prepaid cards include but are not limited to what we think of as gift cards; some employers pay their workers with prepaid cards.
As the Senate is set to consider eliminating the CFPB's rule, the National Consumer Law Center's Tom Cox explains in an op-ed today why the rule is important:
The rule gives prepaid cards the same fraud protections as debit cards; provides a simple, uniform chart of fees; and allows people to check their account balances and transaction history for free. Employers will have to provide workers clear payroll card fee information and advise them that they do not have to use a payroll card. The rule caps overdraft fees, requires them to be affordable, and gives consumers a 30-day waiting period before overdraft features are added.
The full op-ed is here. (Note that the webpage asked me to answer a quick question when it opened, but then quickly showed the full article.)
