NBPCA President Doug Bower To Testify At CFPB Field Hearing On Prepaid Accounts
WASHINGTON, Nov. 3, 2014 /PRNewswire/ -- The Network Branded Prepaid Card Association (NBPCA) is pleased to be invited by the Consumer Financial Protection Bureau (CFPB) to testify at its November 13th prepaid accounts field hearing in Wilmington, Delaware. According to the CFPB, the hearing will feature remarks from Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public.
"I am excited about the opportunity to share with the CFPB how network branded prepaid cards have evolved to help fill the gap in traditional financial services. These bank issued products offer strong protections and the flexibility to meet the payment needs among various consumers groups," said Doug Bower, Executive Director and President, NBPCA.
According to the Payment Card Center of the Federal Reserve Bank of Philadelphia's September 2014 report, Millennials with Money: A New Look at Who Uses GPR Prepaid Cards, 90% of general purpose reloadable (GPR) prepaid cardholders also have checking accounts and 75% have a credit or charge card. A 2013 Federal Reserve Payments Study also found prepaid card payments were the fastest growing payment type, compared with credit, debit, ACH, and check, from 2009 to 2012, increasing at a rate of 15.9% annually, reaching 9.2 billion transactions in 2012.
"NBPCA has long advocated GPR cards provide FDIC insurance on a pass through basis as well as Regulation E coverage, as applied to payroll cards. The CFPB acknowledges the majority of GPR card issuers already are voluntarily complying with this coverage," noted Bower.
"We also support clear, transparent and upfront disclosure of terms associated with prepaid cards, so consumers can make informed decisions about which products are right for them. NBPCA believes all of these goals can be achieved while protecting consumer access to prepaid cards," added Bower.
Prepaid cards continue to be one of the fastest growing non-cash payment types year in and year out because consumers view prepaid cards as safe, mainstream banking tools. In comparing the cost of prepaid cards to checking accounts, Pew Charitable Trust concluded in its 2014 research analysis, Consumers Continue to Load Up on Prepaid Cards, that prepaid cards are often a better deal and offer "lower and fewer fees than basic checking accounts."
About the NBPCA
The Network Branded Prepaid Card Association (NBPCA) is a non-profit, inter-industry trade association that supports the growth and success of network branded prepaid cards and represents the common interests of the many players in this new and rapidly growing payments category. For additional information, visit www.NBPCA.org, or follow us on Twitter@NBPCA.
SOURCE Network Branded Prepaid Card Association (NBPCA)
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