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Group Sues Over Proposal To Kill New U.S. Rule On Prepaid Cards

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Group Sues Over Proposal To Kill New U.S. Rule On Prepaid Cards

Postby sunnyd » Tue Apr 18, 2017 1:14 pm

Story :

A group that supports a new prepaid card rule sued the U.S. Consumer Financial Protection Bureau on Tuesday for information it says could raise doubts about why Republicans are trying to kill the measure.

In October, the bureau, created after the 2007-09 financial crisis to protect individuals against fraud, finished a regulation requiring prepaid card sellers such as Mastercard Inc. and Greendot to display their terms prominently and limit overdraft fees.

The group, Allied Progress, said a resolution introduced earlier this year to wipe out the rule was a political favor to industry leader Total System Services Inc, or TSYS. According to the Center for Responsive Politics, the company has donated thousands of dollars to Georgia Senator David Perdue, a Republican member of the Banking Committee taking the lead on the resolution.

TSYS's NetSpend division is based in Perdue's home state and could lose at least $80 million a year in overdraft fees if the rule takes effect, according to the National Consumer Law Center.

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