“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 – Another victory for consumer protection, State Sen. Emil Jones III (D–Chicago) saw his measure establishing substantive prepaid, reloadable card disclosures receive the approval of the General Assembly.  

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.

The House of Representatives additionally offered an amendment that expanded upon the legislation’s original language regarding disclosure standards and requirements. 

SB 1829 was concurred upon by the Senate and the House and now, having received the approval of both chambers of the legislature, moves to Gov. Pat Quinn for his consideration.