Will FDIC Regulations Shut Down the Prepaid Card Industry?

Market Rates Insight.com ^ | 6/19/14 | MarketRatesInsightblog

[jeannineinsd]

I wonder if this could impact Pay Cards?

I don't know. The article's FDIC consent decree is with Bancorp. The FDIC is concerned with "weaknesses in the Bank’s Bank Secrecy Act (“BSA”) Compliance Program." It also states that "the Bank will be restricted from issuing new non-benefit related reloadable prepaid card programs."

Here is a link to the consent decree. It is short, only 4 pages long. http://www.snl.com/Cache/24005655.pdf?IID=4054569&FID=24005655&O=3&OSID=9

[jeannineinsd]

Here a a couple of articles about people who can’t get bank accounts:

http://www.washingtonpost.com/blogs/wonkblog/wp/2014/06/19/why-a-guy-making-100000-a-year-cant-get-a-bank-account/

http://dealbook.nytimes.com/2013/07/30/over-a-million-are-denied-bank-accounts-for-past-errors/

[EVO X]

In addition to your spending habits, it is reasonable to assume your trash is being monitored.

I shred everything with my name on it before it goes into the trash. I am primarily worried about identity theft. I don't think anyone would be interested in cataloging the contents of my garbage, but it could be a concern for people like celebrities.

[sickoflibs]

The tin foil hat battalion here shouldnt be using the internet as the government has to be tracking their every keystroke.

Chase just sent me a replacement card for one of my MCs, they are migrating it to visa.

[sickoflibs]

RE:”A new report from Bloomberg details how hospitals are using our habits such as buying cigarettes or skipping the gym to create patient profiles in order to identify those who are most likely to get sick.”

I just called up Chase to get them to sign me up for the 5% cash back on all gasoline purchases from July to Sept on my Chase MC CC.(actually I have two of them, two different accounts)

I love Chase.

OH NOOOOO, Obama knows that I am buying gasoline now...,HAHAHA.

[stanne]

Sounds like a great deal.

I use cards all the time, for just about everything, and I like the cashback deal, but that money is not free.

I don’t care what they know about my buying. I don’t get creeped out anymore when I get slammed with ads after I buy something.

Plus, I have nothing to hide.

I was just pointing out something I found to be perhaps coincidental to people who value privacy and freedom.

You don’t care. I get it.

[sickoflibs]

RE:”Sounds like a great deal.
I use cards all the time, for just about everything, and I like the cashback deal, but that money is not free.
I don’t care what they know about my buying. I don’t get creeped out anymore when I get slammed with ads after I buy something. Plus, I have nothing to hide.”

That sounds better.

RE:”You don’t care. I get it.”

Its pretty low on my list.

You know it was Republicans cheered on by many here for years who gave the government all these powers over banking and $$$, as anti-terrorist bills.

They must of thought they would never lose power.

[stanne]

I’m not interested in this conversation.

You think it’s tinfoil, then you say it’s from republicans at FR for cheering them on.

I’m done here.

It’s illogical now.

[sickoflibs]

RE:”I’m not interested in this conversation”

LOL

[driftdiver]

You’re special.

[GOPsterinMA]

IIRC, Chase signed a deal within the last ~year to be exclusively Visa. Chase just had a 50k mileage bonus offer for a new card sign up and spending $’x’ within 3 months, but I passed on it. Personally, I don’t like Visa, especially when it comes to disputing purchases. MC and AMEX are much, much more cardholder friendly.

When I had a Visa thru Capital One and disputed any charges, the process was akin to me being put on trial. And when I complained about the BS, I was told the hoops were Visa’s not the card issuer. I solved any issues by cashing out my miles and telling Capital One what and where they can do with their card. I will never have another Visa card; MC and AMEX only for me.

[sickoflibs]

RE:”IIRC, Chase signed a deal within the last ~year to be exclusively Visa. Chase just had a 50k mileage bonus offer for a new card sign up and spending $’x’ within 3 months, but I passed on it. Personally, I don’t like Visa, especially when it comes to disputing purchases. MC and AMEX are much, much more cardholder friendly.”

I will have to watch this one, see if the benefits change. Certainly Chase MC was good.

[GOPsterinMA]

Check for any changes in the TOS regarding returns and disputes.

Grated Capital One SUCKS, but Google the subject and you will find that Visa is way more anti-cardholder than MC & AMEX.

Put it to you this way: I’ve had credit cards since I was 18 years old, so we’re talking ~2 decades. And in that time, I never had a credit rescinded over a returned item. Capital One/Visa pulled that on me after 2 MONTHS. 2! Long story short was if the G-D idiots I talked to at Capital One would have simply looked up the tracking number THAT THEY REFERED TO IN THEIR OWN PAPERWORK, the situation could have been resolved. But no. And every person I spoke with said they had to follow Visa’s rules & regs. So, I did everyone’s job and got the situation resolved. And like I posted earlier, I redeemed my miles and then told Capital One what they could do with their card.

I will never use either a Capital One or Visa product again.