WASHINGTON – U.S. Sen. Mark R. Warner released the following statement on the Consumer Financial Protection Bureau’s (CFPB) proposed rules for prepaid card users, which were released for public comment yesterday. Early this year, following record use of prepaid cards during the holiday retail season, Senator Warner had called on CFPB to issue rules mandating financial institutions provide standard disclosure of fees associated with their prepaid cards.

“I’m very pleased CFPB is moving forward with implementing consumer protections for one of the fastest growing products in the financial industry. Prepaid cards are a great option for young people or people without credit history, but these consumers are not currently guaranteed the same protections against hidden fees as traditional credit or gift card users. The Bureau’s ‘Know Before You Owe’ proposal is a good step toward making sure all consumers are fully informed about the costs and risks of prepaid products before making any financial decisions. In our increasingly digital economy, consumer protections and financial transparency must keep pace with technological advancements in order to protect consumers and our economy,” said Senator Warner.

A CFPB study of the prepaid market can be found here.