Consumer advocacy groups are gearing up to convince the Consumer Financial Protection Bureau (CFPB) to take further steps to regulate debit and prepaid cards. Fees and overdraft options appear to be in their sights:
“Now it’s time to tackle the missing protections, like limits on fees and credit features on the other payment cards like debit and prepaid,” said Linda Sherry, national director of priorities at Consumer Action in a prepared statement”
It will be important to watch if these topics are picked up for consideration on the CFPB calendar. The consequences of changes to Regulation E and related laws could cost the industry millions, impacting a consumer product already challenged by interchange compression on revenue and the expense of EMV conversions.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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