WASHINGTON (3/20/14)--The Consumer Financial Protection Bureau was in Los Angeles this week to conduct consumer-interview testing of potential disclosures it may propose for use on the packaging of prepaid cards. The consumer testing effort was launched last month in Baltimore.
The agency intends to conduct more tests around the country by the end of April before it settles on a disclosure plan. Last year, the CFPB identified prepaid card regulation as a 2014 priority.
|Form 1 (click to view Form 2)|
The CFPB is developing a model disclosure form to standardize the disclosures so consumers can make side-by-side comparisons of the many products offered. Currently, each prepaid card company's retail package discloses different information in different styles and using different formats to do so--making product comparisons challenging at best.
It is consumer-testing two model forms.
In a blog posting this week, the CFPB says it's developing the standardized disclosure form to include in an upcoming proposed rule. "We want our model form to clearly present a prepaid card's most important fees so you can easily identify the best prepaid card for your needs."