Currently, some prepaid cards are covered by some consumer protection laws and regulations, but others are not. That will change in October 2017, when new CFPB rules go into effect.
The new rules will help customers avoid costly fees and give them the same protections that come with traditional debit and credit cards. Consumers will be able to compare cards more easily, and their money will be safe if their cards are lost or stolen.
Under the new rules, fees must be disclosed on the outside of card packaging. Consumers who report lost or stolen cards within two days will be only liable for up to $50 of their losses. Issuers must provide free and easy access to prepaid cardholders' account information, and those issuers who do give prepaid-card consumers the option of spending more money than they have deposited in the account must give protections similar to those on credit cards.