CFPB to Hold Field Hearing on Prepaid Cards

The CFPB announced today that it will hold a field hearing” in Durham, North Carolina on the topic of prepaid cards on Wednesday, May 23, 2012. Director Richard Cordray will present remarks and the CFPB will hear testimony from consumer and civil rights groups, industry representatives, and members of the public.

The CFPB has not yet issued a proposed rule defining larger participants” for prepaid cards but specifically identified prepaid cards as a market under consideration in its Notice and Request for Comments published on June 29, 2011, along with Debt Collection; Consumer Reporting; Consumer Credit and Related Activities; Money Transmitting, Check Cashing, and Related Activities; and Debt Relief Services. The CFPB proposed a rule defining larger participants in Debt Collection and Consumer Reporting on February 17, 2012 but has not yet issued a rule on larger participants for prepaid cards. This field meeting, therefore, may provide insight into the CFPB’s direction on supervision and examination of prepaid card market participants.