People using the Mango prepaid card will have different fees and benefits starting next month. In a reaction to the changes imposed on prepaid cards by the regulatory changes of the past year, Mango is raising fees, eliminating its bill pay function, and ending its automatic payments service. The company also is raising the interest rate that it pays on its savings accounts associated with the cards, according to a post on Bank Talk.
Mango will charge 50 cents for every balance inquiry over the phone. This includes not just when customers talk to a human being, but even when they punch a keypad through an automated answering system.
In a letter to cardholders dated September 9, Bertrand Sosa, president and co-founder of Mango Financial Inc., attributed the changes to federal regulations and said the company received input from its customers on them.
In light of a new Federal regulation that has impacted financial institutions across the country, including large banks and other prepaid card providers, we made a few important changes to the services and pricing of our products, effective this October. Please read them carefully. Before deciding on these changes, we invited all active customers, including you, to send us input, and we are grateful to all who responded.
Read the letter at: https://www.mangomoney.com/september…ouncement-2011
It is likely that other prepaid card companies will follow suit as they work through the compliance obstacles presented by the new regulations. Providers likely will find offering a prepaid product that can benefit those without bank accounts, while at the same time being self-sustaining an increasingly difficult business proposition.
Read the full post at: http://banktalk.org/2011/09/12/mango…aid-card-fees/
