041013br0425“Legislation like this that calls for greater transparency and accountability on the part of reloadable card service providers is going to help us realize this much needed change for consumers.” – Sen. Emil Jones III

SPRINGFIELD – State Senator Emil Jones III (D–Chicago) saw his measure aimed toward consumer protection pass the Illinois Senate Friday.

Jones’ legislation subjects prepaid, reloadable credit cards and their providers to substantive disclosure regulations regarding all associated fees and service charges.

“Currently prepaid credit cards and their distributors are not made to adhere to sufficient disclosure stipulations,” Jones said. “They are not being held adequately responsible to clients. Legislation like this that calls for greater transparency and accountability on the part of reloadable card service providers is going to help us realize this much needed change for consumers.”

Reloadable, prepaid credit cards were exempted from the disclosure requirements of 2009’s federal Credit Card Accountability, Responsibility, and Disclosure or “CARD” Act. Senate Bill 1829 establishes a standard set of disclosures for consumers to receive from credit card companies or issuers upon purchase of a prepaid, reloadable credit card.

The disclosure regulations would inform consumers of any maintenance fees accompanying the prepaid credit card and its use, charges associated with receiving cash, reloading fees and costs of establishing service.

Senate Bill 1829 passed the Senate and now moves to and awaits the further consideration of the Illinois House.

Category: News Releases
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