Prepaid Debit Cards Should Have Warning Product Stickers, Advocates Say
Federal regulators proposed that certain banking cards should have warning product stickers similar to nutrition facts, Marketwatch reported. About 10 million U.S. households lack checking accounts, and prepaid cards offer a more accessible alternative. However, these cards often come with monthly fees that accumulate over time. A 2013 report from Cardhub found that annual fees can add up to $360 every year, and prepaid cards have an average of 10 different fees. Custom labels and stickers that contain a warning may inform customers before they be go into debt. However, some advocates think even advisories may not be enough.
Printed Labels and Stickers on Debit Cards Could Prevent Debt
According to Ed Mierzwinski, consumer program director at the U.S. Public Interest Research Group, printed labels and stickers may not do enough to deter shoppers from making bad financial choices. Instead, he says that the government should ban excessive fees. However, stickers may be a step in the right direction. The Consumer Financial Bureau crowdsourced ideas for several labels that relate to activities most often associated with accumulating charges, for instance, making withdrawals, checking a balance at an ATM or calling an agent.