Wednesday, October 5, 2016
Green Dot Backs New Prepaid Account Rules
Pasadena-based Green Dot said in a statement today that it will "fully support" the new rules rolled out by the CFSB this week, governing rules for prepaid debit cards--rules which were partially developed in response to some payment issues faced by Green Dot earlier in the year. According to Green Dot CEO Steve Streight, it said it fully supports the CFSB's mission, to "ensure fairness, integrity and consumer protections for all participants in the financial system." and also said it recognized the industry it started has an "increasingly significant role in every financial lives" of American families. The new rules will require prepaid card providers to follow many of the same rules of credit card providers, particularly around interest rates, overdraft fees, and resolving disputes. Green Dot says it has "never charged overdraft or penalty fees" on its prepaid and checking products. Green Dot--as the most established player in the market--already had been moving towards more of a banking model with its debit cards, including establishing Green Dot Bank, which offered up FDIC insurance on deposits of its users. Green Dot's Streit got a grilling from Senators earlier this year after some high profile payment system failures at the company.