RSSThe Consumer Financial Protection Bureau will now begin accepting consumer complaints about prepaid cards and other nonbank products, the bureau announced earlier this week.
The bureau will also begin taking complaints about settlement services, credit repair services, and pawn and title loans.
The bureau plans to issue a proposed rule aimed at increasing federal consumer protections for general purpose reloadable prepaid cards in the coming months.
The CFPB expressed concern that some prepaid cards offer fewer consumer protections than traditional debit or credit cards, although some people use reloadable prepaid cards in lieu of a traditional checking account. Prepaid cards include giftcards, employee benefits cards and general purpose reloadable cards.
Companies which receive complaints have 15 days to respond and must describe the steps they have taken or plan to take. Most complaints must be closed within 60 days.
The bureau’s database already includes complaints about mortgages, bank accounts and services, private student loans, auto and other consumer loans, credit reporting, debt collection, payday loans and money transfers.
“Today we are taking another important step to expand the bureau’s handling of consumer complaints,” CFPB Director Richard Cordray said. “By accepting consumer complaints about prepaid products and certain other services we will be giving people a greater voice in these markets and a place to turn to when they encounter problems.”
