001jones2“Right now, issuers of these general-use reloadable cards do not have to provide a lot of pertinent information regarding their services that consumers need and deserve. They are not being held responsible to clients.” – Sen. Emil Jones III

SPRINGFIELD – State Senator Emil Jones III (D–Chicago) advanced legislation this week providing reloadable, prepaid general use credit cards be subject to disclosure provisions.

“This is significant because currently, prepaid credit cards and their distributors are not made to adhere to any substantial disclosure regulations,” Jones said. “Right now, issuers of these general-use reloadable cards do not have to provide a lot of pertinent information regarding their services that consumers need and deserve. They are not being held responsible to clients. This needs to change, and legislation like this that calls for greater transparency and accountability on the part of service providers is going to help us realize that change.”

 Reloadable, prepaid credit cards were exempted from the disclosure requirements of 2009’s federal Credit Card Accountability, Responsibility, and Disclosure or “CARD” Act. SB 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 disclosures would inform consumers of fees accompanying the prepaid credit card and the product’s use, including the total cost of establishing service, maintenance fees, charges associated with receiving cash and reloading fees.

Senate Bill 1829 passed the Senate Financial Institutions Committee with a unanimous favorable vote. 

The legislation now awaits further consideration by the full Senate.

Category: News Releases
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