Thursday, March 15, 2012
Green Dot commits to CFSI's fee disclosure model
The Center for Financial Services Innovation reported that prepaid card provider Green Dot Corp. is consulting with CFSI on a new fee disclosure box that reveals card fees in a list or box format. Additionally, online prepaid card company Plastyc Inc. agreed to develop a fee disclosure box based on CFSI's recommendations and bill pay services firm Ready Credit Corp. agreed to evaluate the effectiveness of a model fee box later this year, CFSI said.
CFSI noted that most major prepaid card companies voluntarily disclose fees but that practices vary widely and the disclosures are not always easily understandable. David Newville, Policy Manager at CFSI, believes a standardized fee disclosure box will help consumers not only make informed decisions, but it will be a benefit to the industry in the long run. "By developing a simplified and standardized format, companies will ultimately attract more consumers to prepaid cards," he said.
Patrice Peyret, Chief Executive Officer of Plastyc, stated, "By making fees more understandable and transparent, we hope to help consumers trust our products and build allegiance to our brand and services."
Steve Streit, CEO of Green Dot, agrees that a standardized fee disclosure box would be beneficial for consumers. "Consumers should not have to worry about surprise fees hidden deep within cardholder agreements," he said.
"A model fee disclosure box, consistent across all products in the prepaid category, will have long-term benefits for the industry and its customers," Streit added.
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