Demand To Know Your Prepaid Debit Card Fees
Demand To Know Your Prepaid Debit Card Fees: it's your Right
Long are the days when prepaid debit companies charged and fined their customers arbitrarily without prior notice or warning. According to a new set of rules by the Consumer Financial Protection Bureau (CFPB), prepaid debit card holders have a right to be notified of all fines and charges due and subjective to their cards before they are incurred or deducted. These rules will hopefully bring an end to these companies traditional impunity by installing checks and balances to their operations. Additionally, these laws seek to open up the prepaid card market and present consumers with information that helps them make the right prepaid card decision. But what are the other elements of this disclosure rule?
Know Before You Owe policy
How did decide to subscribe to the prepaid debit card you are currently using? Ask several individuals in America and this question, and you will be surprised by their answers. Most prepaid card holders today settled on the card they are currently using as a result of a friends influence or following the media buzz at the time. Without properly researching on the various costs associated with the cards, they settled on one or another and hence the numerous complaints steaming into the CFPB every other day. But you know better now. When making your next prepaid card application, here are a few factors you should put into consideration.
Is it a free card or a one-off purchase?
This is the most distinctive feature of any prepaid debit card. First, check the subscription costs associated with your preferred card. For instance, is the card is freely awarded by a debit card company or departmental store? Also find out if it carries any monthly charges in the form of maintenance or service fees. On the other hand, though most purchased cards don’t carry monthly charges, it is still important to confirm the same.
In some instances, the debit card providers purport to have issued the card at a discounted rate and, therefore, charge minimal monthly charges. However, regardless of how insignificant the amount may seem, always demand an explanation. Nonetheless, the know before you owe rule demands that the company provides potential customers with this information beforehand.
Other costs associated with the card
Apart from the subscription costs, the debit card providers are required to inform prospective card holders of any other expenses related to the card. For instance, some cards charge special rates for different card operation such ATM withdrawals, top-up or balance inquiries. The new rules consider these costs material, and potential customers should be made aware of such costs before they incur them.
According to CFPB, these rules and disclosure will go a long way in helping prepaid card users in determining the card that best suits their needs. Additionally, the transparency in disclosures will prohibit the addition of extra card charges by the debit card manufacturers without the card holders consent. On the same breadth, any amendments to the existing rates and charges should be aptly communicated to the card holders before their activation to enable them to make wise decisions.