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Think You Can’t Overdraft a Prepaid Debit Card? Think Again

Think You Can’t Overdraft a Prepaid Debit Card? Think Again

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For many individuals, one of the most significant tourist attractions of the prepaid bank card is the fact, unlike a bank account, they think they usually have no potential for overdrawing and triggering hefty overdraft charges.

Nevertheless the customer Financial Protection Bureau simply included limits that are strict those costs beginning in October 2017. That might come as a shock to consumers whom did not even understand their prepaid cards could ever overdraft.

It is a significant difference with this industry that is burgeoning. About $65 billion ended up being packed on prepaid debit cards in 2012, significantly more than double the total amount during 2009. Together with CFPB estimates that quantity shall increase once more by 2018.

The cards are widely offered at shops such as for example Wal-Mart and 7-Eleven, plus on the web as well as in payday lending and check cashing places; and impress mainly to the “unbanked” — people who for example explanation or another abandoned their bank account, had it canceled, or never ever got one in the place that is first.