For many individuals, one of many destinations of the prepaid charge card is the truth that, unlike a bank checking account, they think they have no potential for overdrawing and triggering hefty overdraft costs.
However the customer Financial Protection Bureau simply included strict limitations to those costs starting in October 2017. That may come as a shock to customers who did not also understand their prepaid cards could ever overdraft.
It really is a significant difference with this burgeoning industry. About $65 billion ended up being loaded on prepaid debit cards in 2012, significantly more than double the total amount in ’09. (more…)